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.