Robert Dowds (Dublin Mid West, Labour)
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489. To ask the Minister for Health if he will provide an update on the fair deal scheme, including means testing and the fair deal scheme, and the difference in relation to the fair deal scheme if private or public nursing homes are involved. [32957/13]

Kathleen Lynch (Cork North Central, Labour)
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The Nursing Homes Support Scheme is a system of financial support for people who require long-term nursing home care. Under the Scheme, nursing home residents contribute towards the cost of their nursing home care based on their means, and the HSE pays the balance. The Scheme applies to public, private and voluntary nursing homes.

The person's contribution towards the cost of their care is calculated based on 80% of their income and 5% of their assets per annum. If the person is a member of a couple, the assessment is based on half of the couple's combined income and assets. It should be noted that it was announced in Budget 2013 that the asset contribution would be increased from 5% to 7.5% per annum. The legislation underpinning the Scheme must be amended before this change can take effect. This is being progressed in the Health (Amendment) Bill 2013.

The Scheme contains several important safeguards which ensure that both the person in the nursing home and their spouse/partner, if applicable, are adequately provided for:

1. Nobody will pay more than the actual cost of care.

2. The first €36,000 for a person's assets, or €72,000 for a couple, is not taken into account during the financial assessment.

3. The principal residence is only included in the financial assessment for the first three years of a person's time in care. This three year cap can also apply to family farms/businesses in certain circumstances.

4. Where an individual's assets include land and property in the State, the contribution based on such assets may be deferred and collected from their estate. This is the optional Nursing Home Loan element of the scheme.

5. Individuals 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.

6. If there is a spouse/partner remaining at home, s/he will retain 50% of the couples income, or the maximum rate of the State Pension (Non-Contributory), whichever is the greater.

7. Certain items of expenditure, called allowable deductions, can be taken into account during the financial assessment. These allowable deductions include health expenses.

8. There is a financial review mechanism which takes account of the fluctuating value of assets and the fact that cash assets will naturally deplete over time as payments are made to the nursing home etc.

At end-May there were 21,979 people in receipt of financial support towards the cost of long-term residential care. This figure includes both people in receipt of support under the Nursing Homes Support Scheme, and people who have been in nursing home care since before the Scheme commenced and are in receipt of support under systems that pre-date the Scheme. An additional 727 people had been approved for funding, but were not yet in payment. This would be for a variety of reasons, e.g. the nursing home had not yet invoiced the HSE for payment or the individual waiting for a bed to become available in their nursing home of choice. A further 777 people were on the national placement list awaiting funding, with a waiting time of about 6 weeks.