Debunking the Myth: How Nursing Home Funding Works
Nursing home care is not provided free of charge in Ireland. Financial assistance is offered through the Nursing Homes Support Scheme, commonly known as the 'Fair Deal' scheme. This scheme is a system that divides the cost of long-term nursing home care between the resident and the state. The Health Service Executive (HSE) conducts a financial assessment to determine the individual's contribution.
The Fair Deal Scheme: A Detailed Look
The Fair Deal scheme involves two assessments: a Care Needs Assessment and a Financial Assessment. Both are required for approval for financial support.
- Care Needs Assessment: A healthcare professional assesses if long-term nursing home care is appropriate based on your health and ability to perform daily activities.
- Financial Assessment: The HSE evaluates your income and assets to calculate your financial means. For couples, a joint assessment is done based on half of the combined income and assets.
How Your Contribution is Calculated
Your contribution is based on your assessable income and assets.
- Income Contribution: You contribute 80% of your assessable income. This includes various income sources, with safeguards to ensure you retain some income for personal use.
- Asset Contribution: You contribute 7.5% of the value of your assets annually. The first €36,000 of assets (€72,000 for a couple) is disregarded. The contribution based on your principal private residence is capped after three years at 22.5% of its value.
Understanding the Nursing Home Loan
The Fair Deal scheme allows you to defer the payment of the asset-based contribution, particularly for your home, through the Nursing Home Loan (Ancillary State Support). The HSE loans you the amount of your asset contribution and pays the nursing home. The loan, with interest, is repaid from your estate or upon the asset's sale. This prevents the need to sell your home during your lifetime to fund care.
Public vs. Private Nursing Homes
The Fair Deal scheme covers approved beds in public, voluntary, and private nursing homes, with your contribution being the same regardless of the type of facility. You pay your contribution based on whether the facility is public/voluntary (to the HSE) or private (to the nursing home directly). An official HSE list can help you find an approved nursing home.
The Application Process
Applying for the Fair Deal scheme involves several steps: Gather documents, complete the form, and submit it to your Local Nursing Homes Support Office. The HSE will then conduct the necessary assessments before notifying you of the decision.
Comparison Table: Funding Options
| Feature | Fair Deal Scheme | Private Funding | Home Care Support |
|---|---|---|---|
| Contribution | Resident contributes based on income/assets; state pays balance. | Individual/family pays full cost. | Free for those who meet criteria. |
| Eligibility | Long-term nursing home care needs, financial assessment. | No eligibility criteria based on health or finance. | Needs-based assessment; must be aged 65+ and need support at home. |
| Funding Source | HSE and individual | Individual or family | HSE |
| Covered | Bed, board, nursing care, laundry, basic aids. | Varies by package, can include additional services. | Support with daily tasks like bathing and dressing. |
| Asset Impact | Asset contribution (e.g., home) capped after 3 years; loan option available. | All assets can be used to fund care; no caps. | Not applicable, as funding is not means-tested. |
Conclusion: Planning for Future Care
While nursing home care is not free in Ireland, the Fair Deal scheme makes it more accessible by sharing the cost between the individual and the state. Understanding this system is important for planning future care. For more detailed information, consult the official {Link: Citizens Information website https://www.citizensinformation.ie/en/health/health-services/health-services-for-older-people/fair-deal-scheme/}.
