Written answers

Tuesday, 16 November 2021

Photo of Gino KennyGino Kenny (Dublin Mid West, People Before Profit Alliance)
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558. To ask the Minister for Health the impact the new legislation enacted recently will have on a fair deal scheme applicant who has been approved for the scheme but before they take up a bed in a nursing home their main primary residence is sold by their spouse; if the proceeds from the sale of the primary residence is not considered cash assets but rather is determined in a similar way as prior to the sale and the fair deal contribution will be capped at 7.5% of the value of the house for three years; and if he will make a statement on the matter. [55734/21]

Photo of Mary ButlerMary Butler (Waterford, Fianna Fail)
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The Nursing Home Support Scheme (NHSS), commonly referred to as 'Fair Deal', is a system of financial support for people who require long-term residential care. The primary legislation underpinning the NHSS is the Nursing Home Support Scheme Act 2009. Participants in the NHSS contribute to the cost of their care according to their means while the State pays the balance of the cost. The Scheme aims to ensure that long-term nursing home care is accessible and affordable for everyone, and that people are cared for in the most appropriate settings.

Within the NHSS, the asset value of a resident's home, known in the Scheme as the "principal residence", is assessed for 3 years, with 7.5% of its value going towards the cost of care (3.75% in the case of a couple). After 3 years on the scheme, the value of this property is no longer assessed. In practice, this generally reduces the nursing home fees of those maintaining their home, from year four onwards. However, under previous rules, if it was sold, the resulting cash asset was assessable in full for the entire length of stay in care. This could act as a disincentive for those who might otherwise consider selling their homes. The 2021 Act now extends the 3-year cap to cover the proceeds of sale, so that a person will be able to sell their home without incurring additional fees from the fourth year onwards.

Under Schedule 1, Part 3, Section 10C of the Nursing Homes Support Scheme Act 2009 as amended, the 3-year cap on the proceeds of sale only applies where the sale takes place after the person in care begins receiving long-term residential care services or transitional care services.

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