Trevor Sargent (Dublin North, Green Party)
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Question 13: To ask the Tánaiste and Minister for Health and Children the cost to the State of the elimination of the 2% health levy for the new over-70s medical card; and if she will make a statement on the matter. [8602/06]

Mary Harney (Dublin Mid West, Progressive Democrats)
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The health contribution was introduced by virtue of the Health Contributions Act 1979 and came into effect on 6 April of that year. The contributions are levied on income at a percentage rate set in pursuance of the Health Contributions Act and proceeds are paid to the Minister for Health and Children in aid of the Vote for the Health Service Executive. The current rate of contribution is 2% of gross income. The levy is applicable to all persons over the age of 16 with reckonable income, earnings or emoluments. However, certain persons are exempt from liability to pay the health levy, including those who have full eligibility for health services, that is, medical card holders under section 45 of the Health Act 1970.

Following the announcement in budget 2001 to grant full eligibility to those aged 70 and over, and the subsequent amendment of section 45 of the Health Act 1970, these people became exempt from paying health contributions. The cost to the Exchequer of including people who possess over-70's medical cards in the exemption from paying the health levy amounts to approximately €15 million per annum.