Written answers

Friday, 16 September 2016

Department of Health

Nursing Homes Support Scheme Eligibility

Photo of Seán FlemingSeán Fleming (Laois, Fianna Fail)
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1384. To ask the Minister for Health if he will accept the values that persons have for the local property tax as the valuation of houses for the fair deal scheme rather than spending taxpayers' money and public money having auctioneers value houses for the fair deal scheme in view of the fact that the State already has a valuation on these houses; and if he will make a statement on the matter. [25886/16]

Photo of Helen McEnteeHelen McEntee (Meath East, Fine Gael)
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The Nursing Homes Support Scheme (NHSS) is a system of financial support for those assessed as needing long-term nursing home care. Participants contribute to the cost of their care according to their means while the State pays the balance of the cost. A care needs assessment is carried out to determine if a person requires long term care, followed by a financial assessment to determine how much a person will contribute to their cost of care.

Participants in the Scheme contribute up to 80% of their assessable income and a maximum of 7.5% per annum of the value of assets held. In the case of a couple, the applicant’s means are assessed as 50% of the couple’s combined income and assets. The first €36,000 of an individual’s assets, or €72,000 in the case of a couple, is not counted at all in the financial assessment. The capital value of an individual’s principal private residence is only included in the financial assessment for the first three years of their time in care.

In assessing a person's non-cash assets e.g. principal private residence, property etc., the asset must be valued on the basis of the estimated market value which is defined in the Nursing Homes Support Scheme Act, 2009 as the price the asset would fetch on the open market on the date on which the application for financial support is made to the HSE. Section 44(4) of the Nursing Homes Support Scheme Act, 2009 provides for applications for financial support to be accompanied by valuations of assets. In line with the Scheme's national guidelines, persons applying for financial support must submit valuations of assets with their application form. However, under Section 10 of the legislation, the HSE does not have to accept a valuation submitted by an applicant and may seek its own independent valuation of a particular asset.

On the commencement of the Local Property Tax in 2013, the use of the Revenue Commissioners valuations for the purposes of the Nursing Homes Support Scheme was considered by the Department of Health and the HSE. It was decided at that stage not to use the Revenue Commissioners information as it was based on valuation bands and deemed not to be an accurate valuation that an asset would fetch on the open market on the date on which the application for financial support is made to the HSE.

However, it should be noted that the property valuation process is being examined at present as part of the work associated with the Review of the Nursing Homes Support Scheme, which was published in July 2015. The Review recommended the consideration of options to encourage realistic valuations of declared property assets and also to liaise with the Revenue Commissions on the scope for improved validation of declaration of income/assets. An Interdepartmental/Agency Working Group has been established to progress the recommendations contained in the Review. This group is chaired by the Department of Health and includes representatives from the Department of the Taoiseach, the Department of Public Expenditure and Reform, the HSE, the Revenue Commissioners and, when required, the National Treatment Purchase Fund.

A specific date has not been set for the Working Group to conclude its work, but it is in the process of reporting on its progress to date to the Cabinet Committee on Health. This will be done shortly, in line with the Committee's own scheduling requirements.

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