Jackie Cahill
Question:767. Deputy Jackie Cahill asked the Minister for Health if he will address issues in the case of a person (details supplied); and if he will make a statement on the matter. [15491/18]
View answerTuesday, 17 April 2018
Questions (767)
Written answers
Participants in the Nursing Homes Support Scheme (NHSS) contribute up to 80% of their assessable income and a maximum of 7.5% per annum of the value of assets held. In the case of a couple, the applicant’s means are assessed as 50% of the couple’s combined income and assets. The first €36,000 of an individual’s assets, or €72,000 in the case of a couple, is not counted at all in the financial assessment. The capital value of an individual’s principal private residence is only included in the financial assessment for the first three years of their time in care. This is known as the three year cap.
The following safeguards for participants to the scheme apply:
- In the case of a couple, the applicant’s means are assessed as 50% of the couple’s combined income and assets.
- The principal private residence is only assessed for a maximum of three years;
- The first €36k of an individual’s assets, or €72k of a couple’s assets, is not included in the financial assessment.
- An applicant will keep at least 20% of his/her income or of the non-Contributory State Pension, whichever is the greater. If both members of a couple are in nursing home care, they each retain 20% of the relevant income figure.
- No one pays more than the actual cost of their care.
- Eligibility for other Schemes (Medical Card etc) is unaffected by participation in the NHSS.
Certain payments, termed allowable deductions can be taken into account during the financial assessment stage of the application process. It is the responsibility of the applicant to request any such deductions and to provide the information that the HSE will require in order to permit a deduction.
Allowable deductions include health expenses, interest on loans related to the principal residence and rent if the participant lives in rented accommodation. When determining income, the following deductions apply:
1: Income tax, social insurance contributions and statutory levies shall be deducted (net of allowances, reliefs and exemptions which the applicant or any other person might be entitled to claim)
2: Where an applicant owns their principal residence, either (a) interest on borrowings or (b) borrowings incurred to the extent that such amount has not been repaid, for the purchase, repair or improvement of the principal residence shall be deducted. Where an individual chooses to avail of (b), he or she cannot also seek to offset the same mortgage against the value of the asset concerned.
Where an applicant is a tenant, rental payments in respect of the residence shall be deducted where the applicant’s spouse/partner or a child under 21 of the couple lives in the residence. Deductions in respect of interest on borrowings/unpaid borrowings and in respect of rent are mutually exclusive and may not both be made in respect of the same applicant. These allowable deductions should allow for any relief from income tax which may be claimed in respect of such payments.
3: Health expenses within the meaning of section 469 of the Taxes Consolidation Act 1997 shall be deducted, excluding contributions payable under the Nursing Homes Support Scheme, but such deductions shall be net of any tax relief claimed by the applicant or their spouse or relative.