Róisín Shortall (Dublin North West, Labour)
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Question 133: To ask the Minister for Health and Children the projected cost to the Exchequer to administer the means test for the over 70 years medical card. [37772/08]

Mary Harney (Dublin Mid West, Progressive Democrats)
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The Government recently announced, as part of its budget proposals, the withdrawal of automatic entitlement to the medical card from people aged 70 years and over and the introduction of new income thresholds for entitlement to a medical card for those aged 70 and over of €700 (gross) per week for a single person and €1,400 (gross) per week for a couple.

Legislation, which will give effect to these changes, will be enacted before the end of 2008 and will come into effect on 1st January 2009. The arrangements set out in the legislation will provide that persons aged 70 and over who automatically acquired their medical card on age grounds before 31st December 2008 will self-assess for medical card eligibility. In the case of persons reaching age 70 on or after 1 January 2009, the intention is that they would be required to apply formally for a medical card, to confirm in their application that their income is below the specified limits and to provide appropriate supporting evidence.

The legislation will include appropriate provisions in relation to validating the initial self-assessments and the eligibility of those granted medical cards in future under the new arrangements. It is not possible at this time to estimate the cost of administering these arrangements but full regard will be had to the need to balance cost-effectiveness and probity in the use of public funds.

Finian McGrath (Dublin North Central, Independent)
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Question 134: To ask the Minister for Health and Children if she will support a matter (details supplied). [37781/08]

Mary Harney (Dublin Mid West, Progressive Democrats)
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The Government recently announced, as part of its budget proposals, the withdrawal of automatic entitlement to the medical card from people aged 70 years and over and the introduction of new income thresholds for entitlement to a medical card for those aged 70 and over of €700 (gross) per week for a single person and €1,400 (gross) per week for a couple. When a person's means are in excess of the relevant income guidelines, the Health Service Executive may issue a medical card on a discretionary basis, having considered if the applicant would otherwise be caused undue hardship in providing general medical and surgical services for themselves and their dependants.

As part of the means test, any savings up to €36,000 (single) / €72,000 (couple) will be disregarded and only interest from savings above these figures will be considered as income for means testing purposes. Income will not be imputed from property (whether a family home, a holiday home or any other property) for means testing purposes, unless it is rented and only the net rental income will be included as income. The income to be assessed will be the gross income, less any cost necessarily incurred associated with the property and such cost may include insurance premia, loan/mortgage repayments, maintenance etc. Only dividend payments will be considered as income for means testing purposes in the context of shares and investments.

The HSE will shortly write to all persons aged 70 and over. This letter will clarify the various issues that have arisen and will ask persons whose income is above €700 per week (gross) for a single person and €1,400 per week (gross) for a married couple to notify their circumstances to the HSE. Persons whose income is less than the aforementioned thresholds will not have to contact the HSE and will retain their medical card.