Vol. 555 No. 2
127 Mr. M. Higgins asked the Minister for Health and Children the reason for the gross under-estimation by his Department of the cost of extending medical cards to everyone over 70; the total estimated cost at the latest date for which figures are available; and if he will make a statement on the matter. [18046/02]
The Government decision to extend automatic medical card eligibility to all persons aged 70 years and over with effect from 1 July 2001 was announced on budget day in December 2000. It was originally estimated that 39,000 persons would benefit from this initiative. This was based on the CSO estimate of persons in this age category and the deduction of those already registered as medical card holders. However, it subsequently came to light that the health board-GMS databases of medical cardholders in the over 70s age category were inaccurate. Following a targeted review by health boards of medical card lists for the over 70s, in excess of 15,100 duplicate entries and entries for deceased persons have so far been removed from those lists. My Department has now requested the chief executive officers of the health boards to arrange for an immediate full review of the entire GMS list for their functional areas, to be completed by the end of the year. They have also been requested to put in place an effective pro-active management system so as to ensure that the lists are accurate in the future.
My Department did not prepare an estimate of the cost of the initiative, but supplied such data as was readily available to it in early December 2000 to the Department of Finance in order to assist that Department in determining the likely cost in 2001. It was recognised at the time that implementation of the initiative would require the agreement of both the Irish Medical Organisation (IMO) and the Irish Pharmaceutical Union (IPU). Following difficult and protracted negotiations between my Department and the IMO, a deal estimated to cost €19 million annually was agreed in late June 2001, on the basis that there would be 39,000 newly eligible persons in total. My Department is still engaged in negotiations with the IPU in relation to the implementation of the initiative by community pharmacy contractors. The cost in 2002 of implementing the initiative is currently estimated at €83 million gross, and €55 million net when account is taken of consequential savings on the community drugs schemes estimated at €28 million.
