What are the Expenses Towards Fair Deal Nursing Home Scheme in Ireland?

 

Ireland has been in a demographic sweet spot over all these years. However, its population is ageing and this is going to exert more pressure on older people. They would require ample care for their well-being. By 2051, Irish citizens of 65 years and above will shoot up to almost 1.6 million. Families are starting to look for ways to protect themselves financially.

Thankfully, much of the stress is being alleviated by Fair Deal Nursing Home Scheme! Novices are more likely to be curious about their health expenses towards it. This blog post is dedicated to them. If you are new to it and need an estimate of the overall cost of nursing home care, now is a good chance. Read on to find out how much should you keep aside to fulfil your care needs and live an independent life when moving from hospital to long-term care.

Estimating the Cost of Living in Nursing Homes for Long Term Care

For those who have enrolled themselves under the Fair Deal Scheme, the estimation starts during step three of the Fair Deal application process at the time of financial assessment. Under this step, the Health Service Executive (HSE) checks how much can an applicant pay for the nursing home care. In the process, the income and assets of the person are examined which includes all the factors below:

Ø  Income from dividends, fees, interests and commissions

Ø  Pension

Ø  Transferred income

Ø  Rental income

Ø  Earnings

Ø  Income from directorship or holding an office

In cash assets, the following is evaluated:

Ø  Securities, stocks, shares and miscellaneous financial instruments

Ø  Loans from another person

Ø  Deposits and savings

Ø  Retirement funds

Ø  Cash asset transfers to a third person over the last 5 days

Among non-cash assets, the following is reviewed:

Ø  Business(es)

Ø  Home

Ø  Land and property overseas

Ø  Anything that you own, it can be land or property

Now comes the most important part – who pays how much. An applicant is expected to pay the following:

v  80% of one’s income

v  7.5% of one’s overall asset value

However, applicants who are part of couples, enjoy a rebate with HSE expecting only 40% of their income and 3.75% of their asset value for a maximum of 3 years. If both are under nursing home care, the contribution is capped at 22.5%. This 3-year cap is applicable on selected assets only like homes, farms, businesses and proceeds from the sale of a home.

The best thing about enrolling under Nursing Home Support Scheme is that after assessing the financial condition of an applicant, the HSE chips in by paying the rest of the amount towards the cost of care. So, one thing is for sure – the State shall bear the burden partially, thereby bringing down the expenses to a reasonable amount.

Wrapping up:

In the end, all we can say is that the expense that goes towards fulfilling long term nursing home care is not fixed but variable. It depends a lot on one’s income and asset value. Get an estimate of yours from Fair Deal Advice – the advisory service provider, responsible for calculating the contributions of applicants under the Fair Deal Nursing Home Scheme.