asked the Minister for Health why applicants for medical cards are assessed on gross income and not net income as in the case of differential rents.
Written Answers. - Medical Card Applicants.
92.
Net income can refer to a number of different means of, and reasons for abating gross income. In particular it can refer to:—
(1) basic income exclusive of overtime payments or other sources of income; (2) income exclusive of certain statutory payments, such as income tax and social welfare contributions; (3) making allowance for marital status for children and for adult dependants; (4) making allowance for essential recurring expenditure, such as fixed outgoings on a house.
With regard to (1) the criterion for eligibility for a medical card is inability to provide general practitioner services without incurring undue hardship. Income from overtime can be substantial and can determine whether or not a person comes within this category. In assessing eligibility for a medical card, therefore, it cannot be ignored.
With regard to (2), the income guidelines which have been adopted and are used by chief executive officers of the health boards to assist in deciding eligibility for medical cards have been fixed with due regard to the fact that no special allowance is made for income tax and other statutory payments. If such allowance was made, the guidelines would need to be adjusted to provide for this change. There is also the consideration that the benefits of such a change would be felt mainly by persons on higher incomes and it would take away some of the relative advantage which is now given to married couples and to people with children.
With regard to (3), the medical card income guidelines make this allowance. For example, the weekly income within which medical cards are now given is £19.50 for a single person living alone and this is increased to £28.25 for a married couple. In addition, there is an allowance of £2.60 for every child under 16 years and £3.75 for every adult dependant.
With regard to (4), this allowance is made in the medical card income guidelines. All fixed outgoings (rent, rates and so on) on a house in excess of £2.60 a week are allowed for. In addition, allowance is made for reasonable expenses necessarily incurred on travelling to work.