New nursing home scheme will include levy on estates

The Government will this week announce the details of new plans for financing nursing home care which include levying charges…

The Government will this week announce the details of new plans for financing nursing home care which include levying charges on the estates of older people after their death.

The plans, known as the "fair deal" on nursing home care, were signed off at last week's Cabinet meeting and will replace the subvention system from January next year, The Irish Timesunderstands.

There had been widespread speculation that the new system would be shelved or delayed. However, senior Government sources say legislation providing for the new financing plan will be brought before the Dáil imminently.

Under the scheme, which is optional, those in need of nursing home care will pay a maximum of 80 per cent of their disposable income towards their nursing home costs, while the State will pay the balance. An extra deferred contribution of up to 15 per cent of the value of their home and other assets may be due after the person's death.

READ SOME MORE

For the spouse of the older person in care and certain dependants living at home, the charge will be deferred during their lifetime.

Government officials say the changes mean people will no longer be forced to sell their home during their lifetime, while relatives of older people will not have to help pay for care costs.

However, lobby groups such as Age Action Ireland say the scheme discriminates against older people as it represents a new form of payment for services that will only target the elderly.

The Government is likely to be under significant pressure to ensure the new system is workable by January. The National Treatment Purchase Fund, which currently arranges private treatment for people on hospital waiting lists, will be asked to procure nursing home beds on a regional basis.

However, this process can only begin once the relevant legislation is in place. Government sources say the Nursing Home Support Scheme Bill is due to be published shortly.

Once the new scheme is up and running, people will select a home that should be registered and inspected by the new Health Information and Quality Authority.

Sources say it may take six months before this body is in a position to register and inspect nursing homes, leading to speculation that a temporary solution may be found.

Currently, the Government funds 90 per cent of the cost of care in public nursing homes, with individuals asked for 80 per cent of their old-age pension. However, sometimes those in private nursing homes have to fund their care from their own resources, unless they get a nursing home subvention.

Carl O'Brien

Carl O'Brien

Carl O'Brien is Education Editor of The Irish Times. He was previously chief reporter and social affairs correspondent