Richard Bruton (Dublin North Central, Fine Gael)
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Question 219: To ask the Minister for Health and Children if she will clarify the treatment of assets in assessing means for the medical card in the case of persons aged under 69 and in the case of persons aged 70 and over; and if she will make a statement on the matter. [37924/08]

Mary Harney (Dublin Mid West, Progressive Democrats)
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The Government recently announced the introduction of new income thresholds for entitlement to a medical card for those aged 70 and over to come into effect on 1 January 2009.

It is proposed, in the case of persons aged 70 and over, that 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.

In relation to persons under 70 years of age, the following assessment currently applies: In respect of property (excluding the family home), where land/buildings are leased to another person, 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.

Where land/buildings, which are not being used but are capable of being leased or sold, the following assessment options can be used, with the more beneficial option applying to the applicant:

Notional assessment of the rental/lease "going rate" for the area.

Assessment of capital value as set out below.

The verified capital value of the property less any outstanding mortgage is assessed using the following formula:

The first €20,000 of property for a single person will be disregarded and €40,000 for a couple will be disregarded. The disregard figure only applies once where both savings and property are both being assessed.

The next €10,000 will be assessed at one (1) Euro per week per €1,000.

The next €10,000 will be assessed at two (2) Euro per week per €1,000.

Property in excess of the above will be assessed at four (4) Euro per week per €1,000.