Local TD Deirdre Clune has welcomed the decision to set a date for the introduction of the Fair Deal Nursing Home Scheme.

Many people with parents or spouses in nursing homes have been waiting for the Fair Deal Nursing Home scheme to be introduced since Health Minister Mary Harney first announced it in December 2006. They, more than anyone, will welcome the Minister’s decision to introduce the scheme from the 27th of October.

The HSE has published the application form and information booklet for the scheme. This will allow people to get an application form and gather the necessary information so they are ready to apply on the 27th October.

A new care representative appointment process has also been introduced. This allows people to apply to the Circuit Court for appointment as a care representative where they wish to request the Nursing Home Loan on behalf of an applicant with reduced capacity.

Applicants to the scheme must undergo a care needs assessment to determine whether they need nursing home care and a financial assessment to determine their ability to contribute towards their own care.

Under the Fair Deal Scheme, individuals will contribute 80% of their assessable income and 5% of the value of any assets in excess of the asset disregard per annum. The asset disregard is the amount of a person’s assets that is excluded from the financial assessment. The asset disregard is €36,000 for an individual or €72,000 for a couple.

Where a person’s assets include land and property, the 5% contribution based on such assets may be deferred and can be collected from their estate. This is an optional element of the scheme.

A person’s principal residence will only be included in the financial assessment for the first 3 years of their time in care. This is known as the 15% or ‘three year’ cap. It means that individuals will pay a 5% contribution based on their principal residence for a maximum of three years regardless of the time they spend in nursing home care. After 3 years, even if they are still getting long-term nursing home care, they will not pay any further contribution based on the principal residence.

In the case of a couple, the contribution based on the principal residence will be capped at 7.5% where one partner remains in the home while the other enters long-term residential care.

The ‘three year’ cap will also extend to farms and business in certain circumstances.

Nobody will pay more than the actual cost of care. Individuals will keep a personal allowance of 20% of their income or 20% of the maximum rate of the State Pension (non-Contributory), whichever is the greater. If there is a spouse/partner remaining at home, he/she will be left with 50% of the couple’s income or the maximum rate of the State Pension (non-Contributory), whichever is the greater.