The Fair Deal Scheme and Most Common Difficulties

 

Difficulties have been a regular occurrence for the Fair Deal Scheme since it was first launched in 2009. Several laws related to the programme have been changed throughout time, which has provided some insight into how really "fair" it is for the less fortunate. 

Since May 2023, there has been a discernible change in the level of financial assistance, which has led to several nursing home operators voluntarily leaving the programme whereby the State pays for beds in privately and voluntarily run care facilities. 

This article examines the major issues still present and how the HSE and other authorities intend to deal with them.

Common Difficulties Associated with the Fair Deal Application Process

The Fair Deal Scheme application procedure can be difficult and time-consuming. It entails filling out several forms, assembling several papers, and supplying comprehensive financial and personal information. This can be problematic, especially for older or vulnerable people or their families who might have trouble navigating the paperwork.

Choosing A Nursing Home Gets Difficult In Terms of Availability, Location and Amenities 

While the Fair Deal scheme aims to provide choice and flexibility, the availability and location of suitable nursing homes can vary. Difficulties may arise when trying to secure a place in a preferred nursing home, particularly if there is limited availability of certain amenities like specialised beds, or washroom configurations for people with specialised care needs.

Care Assessment, Costs and Contributions

This is a financial support scheme where applicants have to contribute funds for their care needs according to their capacity. That is why the application process includes a care needs assessment to determine eligibility and the level of financial support provided. The several difficulties experienced by applicants are unique, though they mostly revolve around the following criteria: 

    • Value of Assets:
Determining the value of assets or if the applicant owns the property, as it may need to be sold or leased to contribute towards care costs.

    • Care Needs Assessment:
The evaluation procedure entails determining the applicant's physical, medical, and mental health. Making sure that the evaluation correctly represents the person's care requirements and that they receive the proper degree of support is challenging.

    • Out-of-pocket Costs:
Even though the Fair Deal programme offers financial support, the applicant or their family may still incur out-of-pocket costs based on their financial situation and the type of care needed. It might be difficult to comprehend the costs and financial obligations related to the plan.

    • Financial Assessment Continues:
Changes in circumstances must be reported once a person has signed up for the Fair Deal plan and may have an influence on the financial arrangements and payments. Examples include an increase in income or moving to a different nursing home.

The Problematic Waiting Times

The demand for nursing home care in Ireland can be high, leading to potential waiting times for placement. This can be challenging for individuals who require immediate care or for their families, who may struggle to provide suitable care during the waiting period.

Nursing Home Loan Support and Issues with Mortgaging 

The Fair Deal Nursing Home Loan Assistance is a choice made for people who want to postpone paying off the annual contribution of 7.5% of the total value of their asset until after their passing, especially if a family member is still residing there. Similar to a mortgage loan, the care requirements are paid for using the value of the property and any other assets registered in the care seeker's name.

The 3-year Cap applies to certain applicants, such as those who have principal homes with family, farm owners, and small businesses. These select candidates only need to make the annual contribution for 3 years, a total of 22.5% of the value of their property. 

Problems may arise in terms of succession and the future of the family, which is inextricably linked to the future of the assets. 

Expensive For Those With Decent Income and Assets  

The scheme is designed to aid a specific group of individuals, who are alone, asset-rich, and cash poor. This is for those who don’t have priorities about succession and transferring their property to their child or anyone else. Even for rich Irishmen, nursing home care is costly, so seeking financial assistance is rational. But here’s the thing, while being available to everyone, the programme concentrates on assisting candidates who have little resources. Hence, if you have a decent income and assets, applying for a scheme could mean losing almost everything you own.