Fergus O'Dowd (Louth, Fine Gael)
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Question 217: To ask the Minister for Health and Children if she will respond to the concerns of an association (details supplied) in County Louth; and if she will make a statement on the matter. [4698/08]

Máire Hoctor (Tipperary North, Fianna Fail)
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The new nursing home support scheme, A Fair Deal, aims to remedy the inequities that exist in the current system. At present, people face greatly different costs depending on whether they are in public or private nursing homes. In addition, individual contributions in public nursing homes are based on a flat rate regardless of an individual's wealth, whereas State support for individuals in private nursing homes is based on means testing. This means that many people in private nursing homes get no support, and even with a nursing home subvention, people can face costs they cannot afford. The result is that some people are forced to sell or mortgage their homes to pay for care costs. The new scheme will ensure that the State continues to fund the largest part of care costs overall. Furthermore, a person's family will not have to contribute towards the cost of their care.

Under A Fair Deal, individuals who require long-term residential care will contribute a maximum of 80% of their net assessable income whether for public or private nursing home care. In calculating an individual's net assessable income, it is proposed that account can be taken of specified items of expenditure. Depending on the amount of a person's assessable income, there may also be a contribution of up to 5% of a person's assets. The State will meet the balance of cost thereafter in public or private nursing homes and an individual's family and/or friends will not have to contribute towards the cost of their care. An individual can choose any nursing home subject to its ability to meet their care needs and availability. The payment of the portion of the contribution relating to assets can be paid at the time when care is received or may be deferred until the settlement of the individual's estate if they wish. If an individual opts to defer this portion of the contribution, the Revenue Commissioners will collect it on settlement of their estate. If the contribution is based on the principal private residence, it will be capped at a maximum of 15%, or 7.5% in the case of one spouse going into long-term residential care while the other remains in the home.

This means that after three years in care, an individual will not be liable for any further deferred contribution based on the principal residence. If a spouse or certain dependants are living in the principal residence, the contribution may be further deferred until after the death of that spouse or dependant, or until such time as a person previously qualifying as a dependant ceases to qualify as such. Finally, the new scheme will not be limited to persons over the age of 65. Any person who enters long-term residential care in a nursing home will be able to apply to avail of the scheme.