Jan O'Sullivan (Limerick East, Labour)
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Question 100: To ask the Minister for Social and Family Affairs her views on reviewing the changes made in the treatment benefit scheme in budget 2010 to ascertain whether savings will be made by modifying the changes in a way that is less severe on persons who have made the necessary PRSI contributions; and if she will make a statement on the matter. [6973/10]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Treatment Benefits are paid to insured persons from the Social Insurance Fund (SIF). Although the SIF has operated a surplus since 1996, this position began to change in 2008 when expenditure had to be partially funded from the accumulated surplus. Expenditure continued to exceed PRSI and investment income to the Fund in 2009 and it is expected that the accumulated surplus will be completely exhausted in the first half of 2010.

It is estimated that the Exchequer will be required to subvent the Fund by more than €1 billion this year. The Report of the Special Group on Public Service Numbers and Expenditure Programmes advised the Government that, given the other pressures on the SIF, continuation of the Treatment Benefit scheme was no longer affordable.

It is against this backdrop that the Government took the difficult decision to reduce expenditure on the scheme and changes were announced in Budget 2010.

From 1 January 2010, treatments available under the optical and dental elements of the scheme are limited to the free examination. The continued provision of a free examination will allow people to continue to have regular optical and dental check-ups and help ensure the early detection of disease and other health issues.

The Department of Health, under the medical card scheme, provides dental and optical services for customers on low incomes. The service is provided through the same group of contractors that supply services under the Treatment Benefit scheme.

There has been no change to the medical appliances element of the scheme. Hearing Aids and Contact Lenses required for medical reasons will continue to be provided on the same basis as before. This means that a grant of 50% of the purchase price, to a maximum of €760, is available towards the cost of appliances under the scheme.

People who, at 31 December 2009, were undergoing a course of dental or optical treatment or who had applied for approval to commence treatment will have their applications processed under the rules which operated prior to 1 January 2010.

In the period between the budget announcement and the end of December 2009, over 150,000 applications for approval in respect of dental treatments and over 20,000 in respect of optical treatment were received from practitioners on behalf of their customers. These approval requests have been processed and notification issued to the dental and optical practices concerned.

Treatments must commence within 3 months of approval being given and must be completed with 6 months of commencement.

Savings of €54m were originally envisaged in 2010, and while the increased level of enquiries for treatment in the last few weeks of 2009 will impact on that figure, it is still anticipated that substantial savings will result in 2010.

Over 2 million PRSI contributors are still eligible for the free dental and optical examination and medical appliance benefit in 2010. In 2009 over 418,000 customers claimed a free dental examination at a cost of over €14m. In addition, 219,000 free eye examinations at a cost of almost €5.5m were also provided. There were also 7,500 treatments under the medical appliance scheme, at a cost of over €7.5m. Similar level of applications can be expected this year.

The Government ha s indicated that it will review its decision in relation to the treatment benefits scheme in advance of the next budget in the light of prevailing financial circumstances at that time.