In Ireland Nursing Home Care is very expensive, and the growing senior population demands a more affordable, fair system that could make things easier for people who don’t have adequete financial strength.
The Fair Deal Scheme was first introduced in 2007 by the Irish Government through Health and Security Executive (HSE) organisation, in a bid to aid senior citizens in need of Nursing Home Care through a systematic financing policy.
This is not free funding, but a scheme wherein cadidates would have to pay a portion of their care costs based on their affordability, while the state will pay the balance. But this doesn’t have much scope for the candidate to decide what is their affordability, the state decidedes it.
There are many things that are vague and unsaid about this scheme, and as of now, after the COVID pandemic, the applications have increased manifolds, creating quite a buzz about the exact fairness of the idea. Here’s all you need to know about it.
Nursing Home Support Scheme Ireland - Who Are The Ones At Best Benefit
The fundamental scheme entails that one who needs Nursing Home Care, can go through the
Fair Deal support to make it affordable for them.
However, the contribution is 80% of your income 22.5% of the value of assets (broken down to 7.5% of the total amount per annum for 3years).
HSE runs two assessments to determine the candidacy of individuals and to ascertain a contribution that is “Fair”.
The first is a care assessment which is conducted in collaboration with medical proffesionals either appointed by the HSE, or by coordinating with the doctor of the candidate. The care assessment determines the care needs of the candidate and how much would it cost.
After that, comes the Financial Assessment which is done in collaboration with a financial proffessional who audits the income, savings, assets of the candidate and determines their affordability of the scheme.
In the financial assessment an amount of €36,000 is exempted from the count of cash assets, whatever is remaining, candidates would have to pay 80% of it per year. As for non-cash assets, like a house, farmland, non-farm land, company stocks, or small business, the cash flow has to be 22.5% which is distributed to 3years of 7.5% payment.
The whole thing can reduce to half, if the candidate has a spouse or family member back home, who has equal share at the estate. In that case the contribution would be 40% of total income and 11.5% of non cash asset, distributed to 3.75% per annum. And €72,000 will be exempted from the total savings.
Now the problem is that not all people have €36,000 in savings or that they have a home that is probable to sell, or a farmland that is up and run by the family members. In such situations the candidacy can be really cumbersome.
Would You Go For It?
The scheme is designed for retired people that don’t have to bear the responsibility of family anymore, and lives off their pension and savings, at their own house - that does not have a successor as such. Or have a farm that has no people to look after for after their demise.
If you have a family and you wish to pass on the estate to them then you better do this at an early age, and at least 5years before you think of going for the Fair Deal Scheme. Succession Planning is the best way to have your house, and have a good settlement plan with the Irish Nursing Home Care system, one that you can fairly afford.
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