From Department of Health
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Today, the Minister for Health, Stephen Donnelly TD brought the Nursing Homes Support Scheme (Amendment) Bill, 2021 to Cabinet for approval, on behalf of Mary Butler TD, Minister of State for Mental Health and Older People.
This amendment to the Nursing Home Support Scheme will place a cap at three years on the financial contributions of family owned and operated farms or businesses when calculating the cost for nursing home care. This will occur where a family successor commits to working the farm or business.
The Nursing Homes Support Scheme, commonly known as Fair Deal, is a system of financial support for those in need of long-term nursing home care. The Scheme aims to ensure that care is accessible and affordable for everyone and that people are cared for in the most appropriate settings.
Under Fair Deal, residents make contributions to their care based on a financial assessment of their income and assets. In this assessment, the capital value of an individual’s principal private residence is only included for the first 3 years of a resident’s time in care. This is known as the three-year cap.
Minister Donnelly said:
"The Nursing Homes Support Scheme has been in operation for over 10 years and there is broad agreement that the Scheme operates well and continues to provide appropriate financial assistance where it is required.
"However, the government recognises that currently the three-year cap on the financial assessment of a person’s income and assets applies to family farms or businesses only in the case of sudden illness or disability. This situation may place unnecessary financial pressures on these families and could challenge the future viability of the farm or business.
"The Bill brought to Cabinet today, delivers on the Programme for Government commitment to address this issue by introducing additional safeguards to the scheme to promote and protect the sustainability of family farms and businesses that will be passed down to the next generation."
Minister Butler said:
"The COVID-19 pandemic has brought into sharp focus the vulnerabilities of many older people, especially those living in long-term residential care. It is absolutely critical that public investment in long-term care services is maintained for those who need it. Care must remain accessible and affordable, including for those families with a farm or a business.
"Updating the Nursing Home Support Scheme legislation to enhance protections for farmers and business owners has been and remains an absolute priority for me. When I was appointed as Minister with responsibility for Mental Health and Older People in July 2020, I committed to and have progressed this legislation as quickly as possible.
"I am very pleased that Cabinet has now approved the publication of the Bill, and I look forward to bringing this legislation before my colleagues in both Houses at the earliest possible opportunity. I anticipate that the Bill will receive broad, cross-party support."
The Nursing Homes Support Scheme has been in operation since 2009. As of 31st December 2020, there were 22,755 people participating in the Scheme at an annual cost of just over €1 billion. 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 overall aim of the Nursing Homes Support Scheme is that participants contribute to the cost of their care according to their means, while the State pays the balance of the cost. Where an individual's assessed weekly contribution is greater than the cost of care, they do not qualify for financial support. Therefore, applicants to the Scheme with substantial assets or incomes are unlikely to qualify for financial support.
The capital value of an individual’s principal private residence is only included in the financial assessment for the scheme for the first 3 years of their time in care. This is known as the 3-year cap. Currently, this unqualified 3-year cap does not apply to productive assets such as farms and businesses, except in the case where a farmer or business owner suffers a sudden illness or disability and as a result requires nursing home care.
This Bill seeks to address this issue by introducing additional safeguards in the Scheme to further protect the viability and sustainability of family farms and businesses that will be passed down to the next generation of the family.
The proposed change is to cap financial contributions based on farm and business assets at three years, where a nominated family successor commits to working the productive asset within the first three years of the resident’s time in care.