Dáil Éireann Debate, Wednesday - 2 May 2018
117. Deputy Jackie Cahill asked the Minister for Health the reason expenses (details supplied) for persons in receipt of the fair deal scheme are not taken into account when calculating their liability to the scheme; his plans to review the scheme to take these expenses into account; and if he will make a statement on the matter. [19149/18]
Amharc ar fhreagraThe Nursing Homes Support Scheme (NHSS) is a system of financial support for those in need of long-term nursing home care. Participants contribute to the cost of their care according to their income and assets 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 in the Scheme contribute up to 80% of their assessable income and a maximum of 7.5% per annum of the value of assets held. In the case of a couple, the applicant’s means are assessed as 50% of the couple’s combined income and assets. The first €36,000 of an individual’s assets, or €72,000 in the case of a couple, is not counted at all in the financial assessment. 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.
Where an applicant’s assets include land and property held in the State, the contribution based on such assets may be deferred and collected from their estate. This is known as the Nursing Home Loan (Ancillary State Support), the purpose of which is to ensure that a person does not have to sell their home during their lifetime to pay for long-term nursing home care. A nursing home resident can apply for this deferral at any stage.
Under the primary legislation an NHSS applicant may apply for certain items of expenditure to be taken into account and netted off against their means prior to the calculation of their contribution. These items are referred to as allowable deductions. An applicant can apply for the following to be deducted:
- Health Expenses such a doctors' fees, pharmacy costs and prescription charges;
- Interest on loans related to the applicants principal primary residence;
- Rent payments in certain circumstances;
- Levies required by law to be paid and
- Payments made in respect of the maintenance of a child, a spouse or a former spouse, under a separation agreement.
Furthermore, regulations developed in 2014 on allowable deduction identify that payments made in respect of the maintenance of a dependent child are prescribed as an allowable deduction.
These payments shall not exceed
(a) the amount of Child Benefit plus the full rate if the increase for a Qualified Child, and
(b) childcare costs, where relevant, in a calendar month.
It is worth noting that it is a matter of personal choice for an individual as to whether or not they wish to retain or sell their home when they take up residence in a nursing home. The Scheme was reviewed in 2015 with a number of recommendations arising from same being pursued. There are no plans to undertake a further Review of the Scheme at this time.
