Govt working to reform Fair Deal nursing scheme
NEW RULES SET TO MAKE SCHEME MORE EQUITABLE FOR FARMING FAMILIES AND AND BUSINESS OWNERS
JUNIOR Minister Jim Daly has said he was hoping to bring legislation making the Fair Deal nursing home scheme more equitable for farming families and business owners in front of the Oireachtas before the end of the year.
Minister Daly raised the issue at a public meeting in the Fermoy Youth Centre organised by Cork East Fine Gael general election candidate Pa O’Driscoll to discuss services for older people.
His comments follow on from a Government commitment last August to implement changes to the scheme recommended in a 2015 review of its workings undertaken by the Department of Health. The report said that consideration should be given to the capping of nursing home costs against the value of a farm or business that was being transferred to its owners children.
It deemed as “reasonable” a view expressed by the Irish Farmers Association (IFA) that the existing rules of the scheme placed a significant burden on farming families.
Under the existing scheme rules, elderly people are eligible to receive funding from the HSE’s Nursing Homes Support (Fail Deal) Scheme, to help fund their long term care.
Applicants must contribute up to 80 per cent of their assessable income and 7.5 per cent of the value of the value of their assets per year, which in the case of property can be collected from their estate after they die. However, it has been claimed the scheme actively discriminated against farmers and small business holders who have to pay a capital sum, based on a percentage of the value of their farm or business, against nursing home care.
While individuals with family homes only pay the percentage charge for a period of three years, farmers and business owners continue to be liable every year for the duration of their care.
The authors of the report acknowledged the current rules created what they described as “real difficulties” in certain circumstances.
“At present both the income generated and the capital value are used as a basis for contributions. The resultant dilution of equity in the capital asset, particularly in circumstances where the three year cap does not apply, can cause real difficulties for farming and other families,” read the report. “Further consideration will be given to the application of the asset-based contribution to family farms or other family businesses where the relevant asset generates a household’s income, and where the asset would in the normal course pass on to the next generation as a primary income source,” it said.
Minister Daly said he was working on amending the conditions of the scheme so that farms and business would be limited to a three year contribution in line with family homes. While he did stress the change would take time to draw up and would need approval from the Minister of Finance, Minister Daly said he hoped that the process could be completed before the end of 2019.
Welcoming the commitment Mr O’Driscoll said it would remove a great deal of stress from affected families and allow them to plan for the future.
“It will allow them to continue to run the family business without the fear of losing it,” he said.
Other issues addressed at the meeting included the provision of sheltered housing for older people, pensions, rural transport and mental health facilities.
“The wide range of views and contributions from the floor were very informative and it was readily apparent that Minister Daly has clear views on the future of Fair Deal and housing schemes for older people,” said Mr O’Driscoll.
“It was good for him to share these with people who are working in the north Cork area to provide support to older people and to hear feedback from them,” he added.