As part of the budget in 1996 the then Government announced that "persons who have been unemployed for at least one year shall retain their medical cards after entering employment." Persons on the live register for at least one year, who take up paid insurable employment, were deemed to meet the criteria for retaining their medical cards for three years. The provision also covers participants on approved schemes applicable to the long-term unemployed, including back to work allowance, community employment, jobstart, job initiative, partnership and community group initiative and development courses such as workplace and vocational training opportunities scheme. The purpose of the budget provision was to remove disincentives to labour force participation by long-term unemployed persons.
The retention of medical card eligibility is approved for a period of three years when a person or the spouse of a person who has been unemployed for a minimum of one year takes up employment. In this context, time spent on the live register, approved schemes or courses for the long-term unemployed is treated as an unemployed period.