John Gormley (Dublin South East, Green Party)
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Question 112: To ask the Tánaiste and Minister for Health and Children the amount forgone in revenue for the 2% health levy due to the introduction of the over-70s medical card; and if she will make a statement on the matter. [14292/06]

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