Róisín Shortall (Dublin North West, Labour)
Link to this: Individually | In context

Question 170: To ask the Minister for Health and Children the way income is assessed in the means test for the medical card in respect of persons over seventy when the pension has an account that does not accrue for five and a half years and when the pension has an account that accrues every few months but when higher interest will accrue the longer the deposit remains untouched. [8311/09]

Mary Harney (Dublin Mid West, Progressive Democrats)
Link to this: Individually | In context

Under the over 70s medical card scheme, from 1st January 2009 any savings and similar investments up to €36,000 (single)/€72,000 (couple) will be disregarded and only interest from savings or similar investments above these figures will be considered as income for means testing purposes. The relevant portion of savings and similar investments will be assessed on the income calculated at a notional interest rate, based on the prevailing interest rates at the time of application. The Health Service Executive's (HSE) Central Application Unit will review the notional rate on a quarterly basis.

Alternatively, where an applicant wishes to have the actual interest from savings/investments considered, then the HSE will apply this approach and use the most beneficial option in favour of the applicant, subject to submission of the appropriate certificates from the relevant institutions. In the case of "longer term" investment accounts, where the interest is only applied at the end of a fixed period, if the applicant so wishes, the HSE will only take account of the interest earned on the date the investment matures.

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 rental of the property and such cost may include insurance premia, loan/mortgage repayments, maintenance etc.

Róisín Shortall (Dublin North West, Labour)
Link to this: Individually | In context

Question 171: To ask the Minister for Health and Children the steps she has taken to publicise the fact that medical card holders are exempt from the income tax levy, and specifically, to inform medical card holders directly. [8312/09]

Mary Harney (Dublin Mid West, Progressive Democrats)
Link to this: Individually | In context

On the publication of the Finance Bill (No. 2) 2008 on 20th November 2008 the Minister for Finance clarified in the press conference that the income levy would not be applied to income earners with an entitlement to the medical card. A press release containing this information was published on the Department of Finance's website and issued to all national media outlets that day.

In the second stage speech for the Finance Bill (No. 2) 2008 on 25th November 2008 in the Dáil, the Minister for Finance again clarified that individuals with an entitlement to the medical card would be exempt from the income levy.

The Health Service Executive has the operational and funding responsibility for the General Medical Services (GMS) Scheme, which includes the medical card and GP visit card benefits. The Executive is updating the Frequently Asked Questions section on its website to include details of the exemption to the income levy for persons with a medical card.