Dáil Éireann Debate, Tuesday - 30 May 2023
702. Deputy Pearse Doherty asked the Minister for Health if a reassessment of value of property is required under the fair deal scheme when the family home is sold and a new property is purchased by a spouse or partner of the applicant; and if he will make a statement on the matter. [25874/23]
View answerThe Nursing Home Support Scheme (NHSS), commonly referred to as 'Fair Deal', is a system of financial support for people who require long-term residential care. The primary legislation underpinning the NHSS is the Nursing Homes Support Scheme Act 2009. Participants in the NHSS contribute to the cost of their care according to their means while the State pays the balance of the cost. The Scheme aims to ensure that long-term nursing home care is accessible and affordable for everyone, and that people are cared for in the most appropriate settings.Participants within the NHSS contribute up to 80% of their income (40% if part of a couple) and 7.5% per annum of the value of their assets (3.75% if part of a couple). The first €36,000 (€72,000 if part of a couple) is excluded from assessment. The value of a person's principal residence is only assessed for contributions for their first three years on the scheme.
The applicant’s contribution to the cost of their care is calculated based on the financial assessment of their assets on the date they apply to the Nursing Homes Support Scheme.
Assets assessed include cash assets as well as non-cash assets such as the principal private residence, other property and land, including farmland.
For the purposes of financial assessment, income includes:
•Earnings, including income from farming or business activities
•Pension income
•Social welfare benefits/allowances
•Rental income
•Income from holding an office or directorship
•Income from fees, commissions, dividends or interest
•Any income which you have deprived yourself of in the five years prior to applicationTransferred assets are considered to be assessable under the scheme. Under the Nursing Home Support Scheme Act, which underpins the scheme, a transferred asset is defined as an asset that has been transferred at any time in the period of 5 years prior to the date on which an application for State support is first made by or on behalf of that person.An applicant or their representative can request another financial review 12 months after the first assessment or 12 months after the most recent review. The HSE may review a financial assessment at any stage.If there is a change in circumstances, for example the sale of an asset such as the principal private residence, the applicant, their spouse/partner or their personal representative has 10 days to notify their local Nursing Home Support Office (NHSO). Failure to notify the local NHSO within the specified timeframe may incur a fine. A list of other events that can be considered a change in circumstances can be found on the HSE website at: www2.hse.ie/services/schemes-allowances/fair-deal-scheme/if-your-circumstances-change/ Proceeds of Sale: Nursing home residents may also benefit from the sale of the principal private residence.The Nursing Homes Support Scheme (Amendment) Act 2021, which was signed into law on 22 July 2021, and commenced on 20 October, introduces further safeguards in the NHSS to further protect the viability and sustainability of family farms and businesses. It also includes an amendment in relation to applying the 3-year cap to the proceeds of sale of a house while a resident is in long-term care. This addresses the first relevant commitment in the Housing for All Strategy (action 19.7). Within the NHSS, the asset value of a resident's home, known in the Scheme as the "principal residence", is assessed for 3 years, with 7.5% of its value going towards the cost of care (3.75% in the case of a couple). After a person has been in care for 3 years , the value of this property is no longer assessed. In practice, this generally reduces the nursing home fees of those maintaining their home, from year four onwards. The 2021 Act now extends the 3-year cap to cover the proceeds of sale, so that a person will be able to sell their home without incurring additional fees from their fourth year in long-term residential care onwards. This applies even if the home is sold before 3 years in care; the proceeds of sale will be assessed up to the 3-year point, but excluded from assessment after that. Further details can be found here: www2.hse.ie/services/fair-deal-scheme/the-3-year-cap.htmlAn applicant may also appeal a decision made on an application under the Nursing Homes Support Scheme – ‘Fair Deal scheme’, they have no later than 40 working days after notice of the decision was given. This is a statutory requirement under the Nursing Homes Support Scheme Act 2009 (as amended). Appeals can be made against decisions of the Executive (HSE) through the National Appeals Process. Details for the Appeals services and the process can be found on the HSE's website by following this link: www.hse.ie/eng/about/who/appeals-service
In the situation described by the deputy, it is advisable that the person contacts their local Nursing Home Support Office. A list of local NHSO contacts is available at: www2.hse.ie/services/schemes-allowances/fair-deal-scheme/contact/
