Dáil Éireann Debate, Tuesday - 10 May 2022
724. Deputy Paul Murphy asked the Minister for Health further to Parliamentary Question No. 1565 of 26 April 2022, his views on whether that losing a medical card will disincentivise applicants to the fair deal scheme from renting out their principal residence after they have entered long-term residential care (details supplied); and if he will make a statement on the matter. [22760/22]
View answerThe Government has approved a policy change to the Nursing Homes Support Scheme “Fair Deal”, to incentivise applicants to the Scheme to rent out their principal residence after they have entered long term residential care. The rate of assessment for rental properties will be reduced from 80% to 40% for income from all principal residences.
This will be reviewed after six months of operation, with the potential for further amendment after that point. This policy change addresses the commitments made under Housing For All Action 19.8. It is expected that legislation will be brought forward in the coming months. The change will be made through Committee-Stage amendment to the Department of Housing, Local Government and Heritage’s Regulation of Providers of Building Works and Building Control (Amendment) Bill 2022.
It is not possible to determine how the financial consequences of property rental will impact individual cases as each situation is different. Medical card eligibility notwithstanding, people aged 70 or older are automatically eligible for a GP visit card regardless of income, while the financial burden of continuing health care can be mitigated by other schemes such as the Drugs Payment Scheme (DPS) and the Long Term Illness Scheme (LTI). In certain circumstances a person may also retain entitlement to a discretionary medical card. Please note under the DPS, no individual or family pays more than €80 a month towards the cost of approved prescribed medicines. The scheme significantly reduces the cost burden for families and individuals with ongoing expenditure on medicines.
Furthermore, individuals may also be entitled to claim tax relief on the cost of their medical expenses. This includes medicines prescribed by a doctor, dentist, or consultant. Relief is at the standard tax rate of 20%. Nursing home residents and their representatives will need to carefully consider their personal circumstances and the potential consequences of their decisions in this regard and it is advisable to make an informed decision before making a commitment to rent their property.
It is also worth noting that Fair Deal participants are under no obligation to make their homes available for rental if they do not wish to do so. However, if income were derived from any rental agreement, it would be necessary to notify the HSE in order to re-evaluate the relevant person's financial assessment and entitlement to a medical card.
