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 The continuous use of multi-occupancy rooms and outdated facilities undoubtedly contributed to a scenario where it was challenging to control the spread of infection.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.