Tim O'Malley (Limerick East, Progressive Democrats)

I will take the Adjournment on behalf of my colleague, the Tánaiste and Minister for Health and Children, Deputy Harney. I thank the Deputy for raising the question as it provides me with an opportunity to outline to this House the current situation with the nursing home subvention scheme.

A nursing home subvention may be paid towards the cost of private nursing home care where a person is unable to meet the cost, where he or she has been assessed as needing nursing home care by the Health Service Executive and where the person has satisfied a means test. The amount of subvention granted will depend on the degree of nursing home care required — medium, high or maximum — and the amount of the person's assets, including property, stocks and shares and savings. The rates of subvention payable are for medium dependency €114.30 per week, high dependency €152.40 per week and maximum dependency €190.50 per week.

The nursing home subvention scheme was introduced to assist with the cost of private nursing home charges and was not intended to cover the entire cost of nursing home care. Under article 22.3 of the Nursing Homes (Subvention) Regulations 1993, the HSE may enter into an arrangement with a registered private nursing home to provide inpatient services under section 52 of the Health Act 1970. In making an arrangement with a private nursing home under article 22.3, the HSE may pay more than the maximum rate of subvention, as mentioned already, relative to an individual's level of dependency, for example in cases where personal funds are exhausted in accordance with article 22.4 of the Nursing Homes (Subvention) (Amendment) Regulations 1996.

The application of these provisions, however, is a matter for the HSE in the context of meeting increasing demands for subventions. The average rate of subvention paid by the HSE generally exceeds the current approved basic rates mentioned above. Spending on the nursing home subvention scheme has increased from €5 million in 1993 when it was introduced to a figure in the region of €140 million in 2005. The Department is working on changes to the regulations to, inter alia, update the assessment thresholds that are used when determining a person's eligibility for subvention to more appropriate up-to-date levels.

A working group chaired by the Department of the Taoiseach and comprising senior officials from the Departments of Finance, Health and Children and Social and Family Affairs has been established following the publication of the Mercer report entitled Study to Examine the Future Financing of Long-Term Care in Ireland. The objective of this group is to identify the policy options for a financially sustainable system of long-term care, taking account of the Mercer report, the views of the consultation that was undertaken on that report and the review of the nursing home subvention scheme by Professor Eamon O'Shea. The report of the group will be submitted to Government shortly.

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