Lucinda Creighton (Dublin South East, Fine Gael)
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Question 97: To ask the Minister for Health and Children the projected net annual cost of the new medical card system for over 70 year olds; the net budgetary savings introduced by the new system; and if she will make a statement on the matter. [42168/08]

Mary Harney (Dublin Mid West, Progressive Democrats)
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The Government's proposal, to be effected in legislation, is that, with effect from 1st January 2009, the income thresholds for entitlement to a medical card for those aged 70 and over will be €700 (gross) per week for a single person and €1,400 (gross) per week for a couple. It is expected that 95% (or 19 out of 20) of those aged 70 or over will continue to hold a medical card under the new arrangements announced by the Government. 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.

In relation to the introduction of a single GP capitation rate, 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 2008. 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, 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 economy in the use of public funds. The initial report from Dr. Barry will be prepared by 1st December 2008. The most recent figures provided to my Department by the Health Service Executive show 351,203 persons aged 70 and over with a medical card as at 31st October, 2008. The current estimated average cost of a medical card for a person aged 70 or over is approximately €2,360 per annum.