Peter Burke
Question:486. Deputy Peter Burke asked the Minister for Health if he will address a matter regarding the case of a person (details supplied). [4129/20]
View answerWednesday, 13 May 2020
Questions (486)
Written answers
The Nursing Homes Support Scheme, commonly referred to as Fair Deal, is a system of financial support for people who require long-term residential care. Participants contribute to the cost of their care according to their means while the State pays the balance of the cost.
The NHSS budget for 2020 has increased by €70m over its 2019 budget.
At present, 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. This cap does not apply to productive assets such as farms and businesses except in cases of sudden illness or disability where specific conditions are met.
Rental income, including income arising from the rental of a farm, is considered income for the purpose of the financial assessment, and is assessed at 80% less any allowable deductions. Allowable deductions include income tax and, therefore, any income tax arising from rental income should be deducted; other deductions include some health expenses, levies required by law to be paid, and interest on some loans in respect of a person’s principal private residence.
The proposed policy change to the Nursing Homes Support Scheme, to cap contributions based on farm and business assets at 3 years where a family successor commits to working the productive asset, has been approved by Government. The Department developed draft Heads of Bill while considering a number of complex ancillary policy and operational matters which may need to be addressed in the proposed legislation.
The General Scheme of Bill for the Amendment to the NHSS was approved by Government on 11 June 2019 and subsequently published. The changes to the Scheme will come into effect as soon as the legislative process is successfully complete. The Joint Oireachtas Committee on Health undertook pre-legislative scrutiny of the General Scheme on 13 November 2019. Further progress on the development of the Bill has been impacted by the COVID-19 pandemic and the Department's ongoing work to respond to the challenges arising as a result.
It is intended that this proposed policy change, the 3 year cap, will be extended to eligible existing participants in long term residential care so that they are not disadvantaged, but that there would be no retrospective recoupment of contributions for those who have paid contributions over and above the 3 year period.
As an element of this question is in relation to a service matter, I have asked the Health Service Executive to respond directly to the Deputy on this element as soon as possible.