Friday, September 23, 2022

How The Fair Deal Nursing Home Support Scheme Works For New Applicants in 2022-23

 

As we approach the fourth quarter of 2022, the effects of the COVID and the Ukraine War highlighted some of the most persistent problems with Ireland's standard residential care approach and how the Fair Deal Nursing Home Support Scheme Ireland meets them.

 

As new challenges arise with the rising cost of nursing home care, new reforms have made it easier for people with assets like homes, farms, or businesses to have a breather from the annual costs as a contribution. This article explores how the Fair Deal Scheme has changed over the last few years and how it works for new applicants.

Increased Nursing Home Costs

 

Ireland has experienced increases in daily living expenses since COVID and the Ukrainian War, which brought over 300,000 Ukrainian immigrants to Ireland. The cost of nursing home care has also increased.

 

For those living in nursing homes under the Fair Deal Scheme, the cost will increase in the form of service fees mainly, and for services that are not included under the scheme, such as recreational activities, private therapies, etc.

 

There is this principle of “money follows the patient” in regard to how private beds are funded under the scheme. Before the scheme was introduced in 2011, the majority of public nursing homes in Ireland received block funding regardless of activity levels.

 

The program first centralised the manner in which current patients pay for care, and it was efficiently handled on a named patient basis by the NHSS national office. The scheme's implementation of money following the patient in public facilities has been a great accomplishment.

 

If your care needs to change, your costs will change with it, and the plan sticks to the commitment that no one pays more than the cost of care.

 

The impact of COVID-19 on Nursing Homes in Ireland

 

The living standards of certain nursing homes have been under scrutiny after the pandemic. The continuous use of multi-occupancy rooms and outdated facilities undoubtedly contributed to a scenario where it was challenging to control the spread of infection.

 

The Health and Services Executive (HSE) has developed a number of care facilities for the personnel who work in senior residential care homes. The facilities provide access to the most recent clinical advice, data, and linkages to enable care and assistance in various contexts.

Nursing home support scheme cost of care. The facilities include:

 

    COVID-19 Nutrition Support in Residential Care Facilities for Older People

    Enhanced Illness Benefit for COVID-19

    Health Services eLearning and Development

Paying for Nursing Home Support Cost of Care Under Fair Deal in 2022

 

The first thing is that we know how the 3-year cap is not available for families with a loved one living under care. The scheme has a fixed rate for the cost of care, which is based on a percentage of the applicant’s income and assets. The basic cost is

 

       80% of monthly income (40% for couples) is paid weekly or monthly.

       7.5% of assets, including homes, farms, businesses, savings, shares, and stocks (3.75% for couples) is paid annually.

 

In 2021, the two most important pieces of legislation were passed by the Irish Government to extend the effects of the 3-year cap on assets, homes, and property So you have to pay the 75% of the annual cost for only 3 years. So the sum total you have to pay is 22.5% of the value of the property, which is 11.25% for married applicants. But there is one condition that the house must be occupied by the family. The same is for the family farm, which must be taken over and run by family members. The cap does not apply to vacant homes or properties.

 

How the Nursing Home Loan Scheme Works in 2022

 

The three-year limit also applies to lending programmes for nursing homes. The proceeds of the house sale will also qualify for the cap, meaning if sell the house, you will still have to pay only 22.5% or 11.25% even if you avail of the loan.

Although you are not required to pay it while alive, it will be deducted from your inheritance after your death. You have the option to repay the loan at any moment.

After your passing, if your partner is still residing in the house, they may request a further delay. As a result, following their passing, the loan balance based on the residence may be recovered from their estate.

Friday, September 9, 2022

Nursing Homes Support Scheme Guide For The 3-Year Cap

 


The Fair Deal Scheme, with a total budget of roughly €1.4 billion in 2021, is intended to provide long-term nursing home support for up to 22,500 people in Ireland. There is general agreement that the fair deal plan works effectively for a particular group of applicants with limited income and assets. The priority remains that no one will pay more than their cost of care.

However, since it has had a significant impact on families and succession, concerns have been expressed about the system regarding the consequences of the annual contribution of 7.5% on assets like homes, businesses, and farms.

The 3-year cap was introduced as a way to increase the viability of family-run farms and businesses. This Nursing Home Support Scheme Guide will explore all the aspects of the 3-year cap, including how it works for families, couples, succession, and general rules.

What is the 3-Year Cap in the Fair Deal: Nursing Home Support Scheme in Ireland? 

 

The 3-year cap, which was previously only available for principal residences with existing families, finally received the long-awaited update in 2021, with the amendment to the bill that extends the cap to family farms and businesses as well as contributions made by a principal residence to the proceeds of the sale of that residence.

Only the first three years of the applicant's care for themselves or a loved one would be covered by the annual payment of 7.5% against their home, farm, company, or sale of a house.

Treating the home and its proceeds equally furthers fairness and, in the context of the housing crisis, removes a barrier to selling a vacant property when a family member enters long-term care. And this cap would also apply to those who have opted for nursing home loan support.

 

How the 3-Year Cap Works for Home Owners

The Fair Deal Scheme entails applicants having to pay off homes and other assets that they own. It does not affect the assets of other family members. After the first three years, the financial assessment will automatically remove your home, farm, or business. There is nothing to do here; no further agreements or processes are involved. After years, you can stop paying against the property.

 

If you have opted for a nursing home loan. The HSE will draw the loan amount after only three years, either by the sale of the property or through a mortgage if any of the family members choose to pay off the instalments.

 

If you sell the property after three years, then the net proceeds of the sale would be counted. But you would have to pay 7.5% of the proceeds for only 3 years. And you must inform the local office of the Nursing Home Support Scheme if you are selling the property.

 

How The 3-year Cap Works For Farms and Businesses

 

After the 2021 amendment, farm owners or businesses will also get the 3-year cap on contributions for the cost of care. They need not apply or go through any process to get this. Eligible applicants automatically get the cap. The eligibility criteria go as follows:

 

    The business or farm must be managed by either the applicant himself/herself or an immediate family member for a minimum of 3 years to 5 years

    Appoint a successor, usually a family member, who will take care of the business or farm for at least five years after the transfer.

 

How The 3-year Cap Works for Couples Getting Fair Deal Scheme 

 

Couples will each contribute 3.75 percent of their home's value for a maximum of three years. The maximum amount you may contribute over three years is 11.25% of the property's value. The overall contribution is limited to 22.5% if both partners are receiving care. If you obtain a nursing home loan for your residence, your partner may also request to have the loan's lifetime payments postponed.

 

Payments Cannot be Applied Retroactively

 

No payments made earlier than the 3-year cap may be "backdated" or refunded. So, if you've been in care for five years, you might be eligible for the three-year cap. However, this only applies as of the day the HSE designates your family's successor. Any payments you've already made won't be reimbursed.


Friday, September 2, 2022

What Happens After 3 Years Under the Fair Deal Scheme?

 

Nursing Home Support Scheme, alternatively Fair Deal, the scheme that assures financial support to the aged section of the Irish population, has saved many applicants through subsidised long-term nursing home care. However, not everyone can make sense of the information and criteria associated with it. Some applicants feel they are too cumbersome and confusing, often causing stress to anyone who tries to decipher them. Too many questions pop up in their mind, and thankfully, advisory services such as Fair Deal Advice takes care of them. One such query you may come across is – what happens if a beneficiary successfully completes 3-years under the Scheme?

Do you continue to enjoy the scheme benefits after the period? Do you have to pay more towards the cost of contribution? These are some of the doubts you may have in mind. Find convincing answers to them in this post today.

The Scenario After Completing 3 Years Under Nursing Home Support Scheme

While conducting the financial assessment, the 7.5% contribution calculated over certain asset values such as farm, home, and proceeds from the sale of a home is locked in for up to 3 years. Post this, no further payment is expected of scheme beneficiaries. Long-term nursing home care also continues to flow in. This is primarily due to the recently introduced 3-year cap, whereby the worth of the stated assets is considered only for 3-years while calculating the 7.5% contribution based on these assets.

This contribution percentage drops to 3.75% per year in the case of couples, payable for a maximum of 3 years. Therefore, the aggregate figure stands at 11.25% of the property’s value. Once it is cleared, they are entitled to pay nothing but still enjoy appropriate care in their choice of the nursing home.

As for home, the financial assessment shall no longer consider this asset after completing 3-years. And the best part? You do not need to do anything from your end to achieve it. Finishing the tenure is enough to qualify for it. This 3-year cap also applies to net proceeds from the sale of the house while the beneficiary is under nursing home care.

Now, what if the beneficiary of the scheme is a family-owned farm or business owner? They too can enjoy the benefits rendered by a 3-year cap on meeting certain conditions:

  • The beneficiary actively operates the farm for a minimum of 3 years of the past 5-years
  • The beneficiary had applied to the HSE to appoint a family successor who has committed to run the farm or business for a minimum of 6-years

Postscript:

Do you still have doubts in mind? Do not hesitate to have a word with advisors who specially deal with Fair Deal and Nursing Home Loan Scheme cases. Fair Deal Advice in Ireland is one such organisation where the consultants answer the applicant queries and drive away their confusion. They will merrily do so in your case, leaving you encouraged and confident while applying for the scheme.