Lucinda Creighton (Dublin South East, Fine Gael)
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Question 266: To ask the Minister for Health and Children the net annual savings that will be made by the new system for over 70s medical cards in comparison with the old system, taking into account the new administrative costs associated with it; and if she will make a statement on the matter. [39359/08]

Mary Harney (Dublin Mid West, Progressive Democrats)
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Following the recent Government decision to withdraw automatic entitlement to a medical card for persons aged 70 and over and to raise the means assessment threshold for persons in that age cohort, it is estimated that approximately 5% (20,000) of persons aged 70 and over will no longer qualify for a medical card. It is estimated that this will result in a saving of approximately €20 million in 2009, taking account of GP capitation fees, drug costs, superannuation costs, etc.

The Government appointed Mr. Eddie Sullivan to make recommendations on a new single annual capitation fee to be paid to general practitioners in respect of medical card holders aged 70 and over in the community. Mr. Sullivan recommended a single capitation fee of €290, which would come into effect, subject to the proposed legislative changes, from 1st January 2009. Mr. Sullivan's recommendations were accepted by Government on 29th October 2009. Mr. Sullivan estimated that this would generate savings of the order of €16 million in 2009.

The Government believe that there is potential for significant savings of at least €64 million in drug costs under the GMS and community drug schemes, without compromising on patient care. Accordingly, it has decided to establish a process under the chairmanship of Dr. Michael Barry, to develop recommendations for good practice which will secure safe and effective prescribing for patients, while maximising the potential for the economy in the use of public funds. The initial report from Dr. Barry will be prepared by 1st December 2008.

The Health Service Executive has indicated that, through the streamlining of its application processes and the restructuring of existing organisational capacity and resources to manage the implementation of this government measure, it does not envisage any significant additional administrative costs.