Seán Ryan (Dublin North, Labour)
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Question 197: To ask the Tánaiste and Minister for Health and Children her proposals to abolish payment of the 2% health levy by people over 65 years of age. [10393/06]

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 are paid over to the Minister for Health and Children in respect of the Vote for the Health Service Executive. The current rate of contribution is 2% of gross income and, subject to exemptions, is applicable to all persons over the age of 16 with reckonable income, earnings or emoluments.

The exemptions, as outlined in section 11 of the Act, are those whose income does not exceed €440 per week, those who are fully eligible for health services as set out in section 45 of the Health Act 1970, such as medical cardholders in this State, including those workers covered under EC Regulation 1408/71, recipients of a social welfare widow's or widower's pension, one-parent family payment or deserted wife's benefit or allowance, as well as those in receipt of a widow's or widower's pension acquired under the social security legislation of an EU member state.

When the primary legislation was enacted, no upper age limit applied to the health contribution. However, as the Deputy is aware, following the announcement in budget 2001, full eligibility for health services under section 45 of the Health Act was granted to those aged 70 and over, effectively placing an upper age limit of 69 years on liability to pay health contributions. There are no proposals to alter any of these exemptions or to provide an exemption from paying health contributions to those aged between 65 and 69.