Fair Deal Nursing Home Scheme: How Does The Financial Support Work?

 

Has your dad or mom reached a stage in life where you believe they might be better off in nursing home? Considering long-term nursing home care because of elderly health issues or age-related medical conditions? Applying for the Fair Deal Nursing Home Scheme can help you with financial support towards the costs of your parents’ long-term care.

Medical care is very expensive nowadays and even more so when the elderly is dealing with a range of ailments that come with age. End-of-life expenses can impose a huge financial burden since most senior citizens find it very tough to cover the cost of their care and it is here that applying for the NHSS can help. Ever since the introduction of the Fair Deal, the way Ireland’s ageing population pays for nursing home care has changed substantially.

Here’s a detailed insight into NHSS scheme and how it works.

What Is The Fair Deal?

The Fair Deal Scheme, also known as the NHSS, is a scheme launched in 2009. It replaced the Subvention Scheme which had been in existence since 1993. Managed by the Health Service Executive (HSE), it is regarded as one of the best healthcare policies in the world towards for the elderly. Under this scheme, you will make a contribution towards the cost of your care and the HSE will be paying the balance.

In order to avail of the State Support, your assets and income are assessed and your weekly contribution towards the nursing home fees is calculated based on this assessment’s income. NHSS covers public nursing homes, private nursing homes, and voluntary nursing homes. Under this scheme, an individual will receive the same kind of State support, no matter the type of nursing home you choose.

What Does The Fair Deal Cover Exactly?

The Fair Deal funding covers the level of care that’s apt to individuals as well as a bed, board, and a laundry service. Also, it covers some therapeutic activities and certain appliances and aids needed to assist with the activities of daily living. If you have a medical card, it must cover the cost of appliances other than medical care like medication and GP charges.

Can Anyone Qualify For Financial Assistance Towards Nursing Home Care?

Any individual who is ordinarily a resident of Ireland and needs long-term nursing home care can apply for the Fair Deal Nursing Home Scheme. At first, you or your loved one need to be assessed if a long-term nursing home care is really needed. If you only require short-term care or convalescent care, you won’t qualify for the NHSS.

You can easily apply to any voluntary, public, or private home that’s listed under the HSE scheme and is assessed as appropriate for your needs. No matter what you choose, you will still get the same amount of financial support.

How Does The NHSS Work Financially?

Once you are assessed as someone who needs nursing home care for a long-term and your Fair Deal application is approved, the HSE will check your income and the assets you own to decide your contribution towards the cost of the care. Under the NHSS, the general formula is that you contribute up to four-fifths (80pc) of your total income and a 7.5pc of the value of assets you own every year to your long-term care costs, with HSE paying the rest.

Furthermore, when calculating the amount you have to pay for your care, the first €36,000 worth of your total assets or €72,000 if you are married are excluded. It is worth noting that you can defer the payment of the 7.5pc contribution until you die. This is made possible by a HSE loan which can be repaid any time.

Wrapping Up:

The Fair Deal Nursing Home Scheme is indeed a blessing for the ageing population. If you want to know more about the NHSS or perplexed about how to apply for it, you can approach professional Fair Deal advisors for assistance.

Do Applicants of Fair Deal Scheme Enjoy Tax Relief?

 

Fair Deal Scheme in Ireland is indeed fair, and there is practically no doubt in the statement. It is a reason why many elderly residents of the State are living independently without seeking financial support from any of their relatives. It also covers certain therapeutic activities and appliances to support daily living.  Apart from the intrinsic benefits, what else do you think are they enjoying? The most significant advantage of paying your part of the contribution towards nursing home care is Income Tax (IT) relief. This is applicable if the applicant receives on-site nursing care for at least 24 hours. Believe it or not, the exemption offered by the Irish government saves quite a portion of the applicant’s income. No wonder the Nursing Home Support Scheme is so popular across the country!

Now the question is when can you claim the IT relief, and on which sum is it applicable? Applicants are mostly confused about them. The post shall answer their doubts today and be their Nursing Home Support Scheme guide in tax relief matters.

Fair Deal Scheme and Tax Relief

As we all know, the contribution towards nursing home care is halved between the applicant and the HSE in Ireland. Tax relief applies to the prior. What about the Nursing Home Loan Scheme? Since the HSE bears it for individuals deferring their healthcare costs by using their assets as security, there is no point in asking for tax relief on the amount. However, upon the beneficiary's death, if a family member repays the loan on the applicant’s behalf, the same person can claim IT relief on the sum.

During a specified tax year in one or two odd circumstances, an applicant can be lucky to receive an exemption on nursing home expenses. The sole condition is to get in touch with a Revenue Officer. You may have to share your claim details for the request to process.

Postscript:

You must be wondering what can be the next course of action. How can you or your relative claim the tax exemption on nursing home bills? Fret not when Fair Deal Advice is here! The advisory body mostly deals with cases of the Nursing Home Support Scheme. It has also helped many make plans for it, complete the application form and guided them through the process. You can always seek assistance from them in matters of IT relief.