The Nursing Home Support Scheme Guide For Long-Term Care

 

Do you want to provide a better quality of life to your elderly family members or loved ones who have physical and mental illnesses? But, are you worried about the financial implications of your decision? Fret not! All you have to do is choose the Fair Deal – an Irish government scheme to assist the country's ageing population.

Curious about this financial aid? Check out the Nursing Home Support Scheme guide below for detailed insight.

Nursing Home Support Scheme: An Overview

The State's Nursing Home Support Scheme (NHSS), which essentially pays for long-term care for the majority of Ireland's elderly population, is known as Fair Deal. The Health Service Executive (HSE), which oversees the programme, is in charge of determining each person's eligibility and making arrangements for payments to nursing facilities on their behalf.

The Fair Deal is fundamentally based on the idea that each individual seeking assistance through the State system must make a payment in accordance with their financial capacity. Anyone who generally resides in Ireland and has been assessed to require long-term nursing home care is eligible for the Fair Deal. The programme offers financial assistance to cover the cost of care, which includes lodging, meals, nursing, and other essential medical services.

Why Is It Worth Availing Of The Fair Deal Scheme In Ireland?

1. Financial Support

The Fair Deal programme offers financial support to qualified individuals to help with the expense of their long-term nursing home care. For those who may have fewer financial resources or savings, this may be very crucial. Opting for this Irish government scheme can thus help to alleviate the financial burden.

2. Flexibility

Under this scheme, people can choose the kind of nursing home care they want to receive. As long as the nursing home satisfies certain requirements, it gives residents the freedom to select where they want to live. This might give individuals more freedom and control over where they live.

3. Peace Of Mind

Both individuals and their families may feel more at ease knowing that the expenses of their long-term nursing home care are covered. Applying for the Fair Deal scheme can thus lessen some of the stress and anxiety that may be associated with the possibility of requiring long-term care.

4. Fairness

The NHSS's goal is to provide assistance based on a person's financial situation so that individuals with more money to spare can pay more for their care than the ones with less. As a result, the cost of long-term care is allocated more fairly.

5. Supports And Services

The programme also offers a variety of services and supports to aid individuals in maintaining their independence and standard of living. Usually, these include access to medical and allied health services, assistance with day-to-day living tasks, and participation in social and recreational activities.

What Is The Nursing Home Loan?

The Nursing Home Loan Scheme, often called the "Ancillary State Support," is a programme offered by the Irish government to assist people in covering the expense of their long-term nursing home care. The programme is intended to help people who do not have the financial means to cover their own medical expenses.

An individual's primary private dwelling is used as security for a loan under the nursing home loan scheme (i.e. their home). When the homeowner passes away or the house is sold, the debt is paid back. The interest on the loan is included and is currently levied at a lower rate of 2%.

The Nursing Home Loan's eligibility is decided on a case-by-case basis, thus not everyone will qualify. Consult a financial advisor to receive further information and advice if you're thinking about the Nursing Home Loan Program.

Final Words:

With this Nursing Home Support Scheme guide, you are now fully informed on the Fair deal funding. All things considered, this financial scheme can support you in maintaining your independence, enhancing your health and wellness, and leading more comfortable lives.

How Rental Income Works For Fair Deal: Nursing Home Loan Scheme

You can petition to pay only 40% of any rental revenue towards nursing home care if you own your home and rent it to a renter. This means that 60%, not 20%, of the rental income, is yours to keep. So how does it work for those seeking the Nursing Home Loan Scheme? This blog will keep you up to date.

How the Nursing Home Loan Program Will Work in 2023

The Fair Deal Scheme includes an optional component called the nursing home loan. In addition to receiving any financial assistance from Fair Deal, you can apply for this scheme, which is not mandatory and is only there to supplement the main scheme.

For all its value, the loan enables the Fair Deal applicant to postpone making their yearly 7.5% contribution, or 22.5% against their home and assets, for three years. The payment may be postponed until after the applicant's passing. While the 3-year cap does apply to asset payments for the house, it does not apply to rental income.

What the Building Control and Provider Regulation (Amendment) Bill of 2022 Means for Rental Income Under the Fair Deal Solutions

Reducing the amount of contribution against income obtained by renting out their homes is the first modification brought about by the passage of this bill. After the change takes effect, nursing home residents will be able to keep up to 60% of the rental money while only paying the HSE 40%.

This modification was passed on July 6, 2022, and is now prepared for implementation because the HSE has put updated procedures, methods, and records in place. Once completely implemented, it is predicted that this approach will use between 400 and 2,000 rental homes at any given moment.

Under "Housing for All," the government promised to make this modification to remove a barrier to renting out a resident's unoccupied home who is receiving long-term nursing facility care.

The assessment for Fair Deal residents who opt to rent out their vacant house will now be 40% rather than 80% of their rental revenue. As a result, residents can keep 60% of their income as opposed to just 20%.

How to Apply for a Nursing Home Loan in 2023

The Fair Deal Loan application can be made when you first apply for Fair Deal or at any time thereafter if you believe you are unable to pay the annual amount as a contribution to care for your asset.

To find out all updated details regarding the application for the Ancillary State Support you must refer to "Part 6 of the Fair Deal application form" which is available as a PDF on the Citizen Information or HSE websites.

For information and application specifics if you want to apply for the Nursing Home Loan, either for yourself or a loved one, you can also contact Fair Deal Advice, which is a specialist firm dedicated to helping Fair Deal Scheme applicants in Ireland. 

The application process involves giving formal permission for a Charging Order to be registered against your asset to apply for the loan. Your spouse or partner must sign off on the agreement if you're a pair. The HSE's debt is secured by a straightforward sort of mortgage known as a charging order. 

Assessing the Cost of Availing Long-Term Nursing Home Care in Ireland

 

Ageing accompanies the urgency to avail of long-term nursing home care as age-related diseases follow. Unfortunately, not every elderly person can afford the cost of care. Luckily, Ireland witnessed the launch of State funding in 2009 under the administration of health minister Mary  Harney. Titled Nursing Home Support Scheme or simply Fair Deal, the system provides financial support to eligible Irish residents.

Does this imply applicants need not pay anything towards nursing home care? Or have the prices been subsidised? You guessed it right if you thought about the latter. What about the amount to be paid for availing the nursing home care? It’s no fixed sum but a percentage of one’s income and assets. A financial assessment precedes the finalisation of the fees of an applicant. Let us open up a bit on that part so that you can estimate the expenses of turning to the Fair Deal Scheme in Ireland for financial support.                                 

How Much is the Cost of Seeking Long-Term Nursing Home Care in Ireland?

Thanks to Nursing Home Support Scheme and Nursing Home Loan Scheme, it’s not much as long as you are asset rich! As for the payment, it relies entirely on your marital status. Let’s check what will be your assessable income (aggregate earnings minus allowable deductions) if you are single:

·       40% of rental income, gathered from the principal residence

·       80% of assessable income

·       7.5% of cash assets, including stocks, shares and savings

·       7.5% of non-cash assets, including property and land

Please note that your first €36,000 will be spared from asset assessment. At first, the amount will be discounted from cash assets and finally from non-cash assets. Another key aspect to bear in mind is the 3-year cap. It implies a ceiling of 7.5% on the value of a home for 3 years maximum. Simply put, applicants are only responsible for paying 22.5% of their property value towards Nursing Home care.

What about couples? Applicants having a spouse or a partner will have the HSE examine the income and assets of the couple, as a whole. You can be married or unmarried but must have lived with your partner for at least 3 years in the latter case to qualify for the Fair Deal Scheme in Ireland.

As for the contribution towards the cost of care, it will be the following:

·       40% of the couple’s combined assessable income

·       40% of the rental income procured from the principal residence

·       3.75% of the couple’s aggregate cash assets, comprising stocks, shares and savings

·       3.75% of the couple’s aggregate non-cash assets, which could be land or property

Of course, there is an exemption, but it’s €72,000 of the combined assets. Expect it to be deducted from your cash assets first, followed by non-cash assets. Since applicants are a part of a couple, the exemption has doubled.

A major advantage for couples applying for Nursing Home Support Scheme is that the 3-year cap on homes amount to a maximum of 11.25% for the first 3 consecutive years. Therefore, couples always have an edge over single applicants.

Wondering whether nursing home charges have an impact on the cost of care? Not at all, as HSE pays the balance as long as the contribution is less than the estimated expense. Coming back to choice, applicants are free to pick from voluntary, private and public nursing homes. 

Wrapping up:

The expenses of a Fair Deal Scheme applicant towards long-term nursing home support are never fixed. It varies from one person to another, depending on the candidate’s earnings and asset value (both cash and non-cash) or one’s marital status. From the outset, this may seem simple, but in reality, a lot more complicated. Therefore, experts recommend seeking the assistance of Fair Deal advisors to get the application granted without delay.