Thomas Byrne (Meath East, Fianna Fail)
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Question 204: To ask the Minister for Health and Children if the income and assets of a person wishing to avail of the nursing homes support scheme are taken into account when calculating their contribution to care; if assets that include land and property are taken into consideration; the rules governing contributions based on property assets, where a principal residence has been signed over to other family members. [45460/09]

Áine Brady (Kildare North, Fianna Fail)
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Under the Nursing Homes Support Scheme, individuals will contribute up to 80% of their assessable income and 5% of the value of any assets in excess of the asset disregard per annum towards their long-term nursing home care costs. The asset disregard is €36,000 for an individual and €72,000 for a couple. The HSE will pay the balance of the cost of care.

Where a person's assets include land and property, the 5% contribution based on such assets may be deferred and collected at a later date. This is an optional element of the scheme called the Nursing Home Loan. This loan will become repayable after the person's death or if the person sells/transfers their property (if this occurs before their death).

A person's principal residence will only be included in the financial assessment for the first 3 years of their time in care. This is known as the 15% or 'three year' cap. It means that a person will pay the 5% contribution based on their principal residence for a maximum of three years regardless of the time they spend in nursing home care. After 3 years, even if a person is still getting long-term nursing home care, they will not pay any further contribution based on the principal residence. This 'three year' cap applies regardless of whether a person chooses to opt for the loan or not.

In the case of a couple, where one partner remains in the home while the other enters a nursing home, the contribution based on assets is 2.5% per annum and the contribution based on the principal residence is capped at 7.5%.

The scheme also encompasses the following important safeguards:

Nobody will pay more than the actual cost of care.

Applicants will keep a personal allowance of 20% of their income or 20% of the maximum rate of the State Pension (non-Contributory), whichever is the greater.

If there is a spouse/partner remaining at home, he/she will be left with 50% of the couple's income or the maximum rate of the State Pension (non-Contributory), whichever is the greater.

The first €36,000 of the applicant's assets, or €72,000 in the case of a couple, will not be counted at all in the financial assessment.

If there is a partner or certain dependants living in the principal residence, the repayment of contributions may be further deferred for their lifetime.

Under the legislation, any income or assets transferred within the five years prior to applying for the scheme are taken into account in the financial assessment. This is not a new concept; the same measure was in place under the subvention scheme.

This provision does not affect a person's right to sell assets for full market value. Rather it is intended to prevent people from depriving themselves of assets for the purposes of the financial assessment.

However, the legislation also includes a provision, which only applies to items transferred prior to the 9th October 2008 (i.e. the date of publication of the Bill), that enables people to appeal the inclusion of transferred income/assets in the financial assessment. The applicant may apply to have transferred income/assets excluded from the financial assessment on the basis that their inclusion would cause undue financial hardship to themselves, their spouse/partner or their child under the age of 21. Finally, the Information Booklet on the scheme can be downloaded from the HSE's website at http://www.hse.ie/eng/services/Find_a_Service/Older_People_Services/nhss/nhss.html.