Róisín Shortall (Dublin North West, Labour)
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Question 247: To ask the Minister for Health and Children the categories of pensioner to which the health levy will apply; if a pensioner over 70 without a medical card is subject to this levy; and if a pensioner under 70 without a medical card is subject to this levy. [36072/08]

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 the 6th 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 up to € 1,925 per week or €100,100 per annum and 2.5 % on the balance of income in excess of those amounts in a contribution year. Subject to exemptions, the rate of contribution is applicable to all persons over the age of sixteen with reckonable income, earnings or emoluments.

The exemptions, as outlined in Section 11 of the Act, are those whose income does not exceed €26,000 per annum, those who are fully eligible for health services as set out in Section 45 of the Health Act 1970 (i.e. medical cardholders in this State, including those workers covered under EC Regulation 1408/71), recipients of a Social Welfare Widow's/Widower's Pension, One-parent Family Payment or Deserted Wife's Benefit/Allowance, as well as those in receipt of a Widow'/Widower's pension acquired under the social security legislation of an EU member State.

As regards persons aged 70 or over, the current position is that those on receipt of a medical card are exempt from paying health contributions. This will continue to be the case up to the end of this year. I propose to amend the Health Contribution Act 1979, by bringing forward legislation in the upcoming Social Welfare Bill which will exempt all persons aged 70 years and over on or after the 1st January 2009 from the health contribution.