John Gormley (Dublin South East, Green Party)
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Question 160: To ask the Minister for Health and Children the reason the anomaly continues to exist where wealthy people over 70 years of age do not have to pay the health levy; if the Government will close this loophole; and if she will make a statement on the matter. [3370/07]

John Gormley (Dublin South East, Green Party)
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Question 161: To ask the Minister for Health and Children the amount of money that will be lost to the Exchequer in view of the fact that persons over 70 years of age do not have to pay the health levy, calculated on the health levy rates introduced in budget 2007; and if she will make a statement on the matter. [3371/07]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I propose to take Questions Nos. 160 and 161 together.

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 and 2.5% on income in excess of €100,100 in a contribution year. 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 cardholders 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 70s medical cards in the exemption from paying the health levy amounts to approximately €28 million per annum.