Health Insurance Fair Deal Scheme

Hi

I'm trying to understand the Fair Deal scheme in relation to nursing home support - not something I've had to look into before - so I have a fairly basic query that I'm hoping someone can clarify before I go much further.

Where assets (in this case, two properties) are jointly owned by my parents, but am looking at the affordability for one parent to move into a nursing home, do I consider half the value of the properties when applying the 7.5% calculation, or the full value?

Similarly for income, do I only consider the income (in this case, pensions) of the parent who would be going into the nursing home when applying the 80% calculation, or the income of both parents, or half the income of both combined?

The answers to the above would determine if the fair deal scheme would apply for them or not.

Thanks in advance.

Hi. Their principle private residence and second property is assessed at 50%. The 7.5% on the PPR will cease after 3 years while the second property will be assessed indefinitely. Their income is combined, then 80% of the 50% will be assessed.

(note: edited following Two1's clarification)

Many thanks for this information - very helpful.

errigal said:

Where assets (in this case, two properties) are jointly owned by my parents, but am looking at the affordability for one parent to move into a nursing home, do I consider half the value of the properties when applying the 7.5% calculation, or the full value?

Similarly for income, do I only consider the income (in this case, pensions) of the parent who would be going into the nursing home when applying the 80% calculation, or the income of both parents, or half the income of both combined?

Click to expand...

Consider half the combined value of both properties when applying the 7.5%.

Consider half the combined incomes of both parents when applying the 80%.

Have a look at Example 3 - Mr Byrne on page 18 here;

https://health.gov.ie/wp-content/uploads/2014/04/Frequently-Asked-Questions.pdf

Thank you for that important clarification.

I think I have most of the info I need - 1 additional query that I don't see answered definitively....
- When the Financial assessment is carried out, do they look at "potential" rental income for the 2nd property - i.e. even if they have never chosen to rent out the 2nd property, will a notional income value be added to their actual income, thereby increasing the threshold where a state contribution would apply.

I don’t know, have never been there with that issue.

I would be surprised though if the HSE were to apply a notional income value to an unoccupied and not let second property.

Nowhere that I have seen anyway is potential rental income or notional income values mentioned nor do they apply it to the many unoccupied and not let PPRs.

If your parents have no rental income just put Nil in the rental income section.

If its important that you know before putting in the application, phone them, I have always found them helpful.

Its the financial state of affairs of the applicant(s) as at the date of application so if they have income then its included. The property may have potential to create income going forward, which can be used to pay some of the bills but potential can't be definitively valued.

All true but bear in mind any new income is a notifiable change in circumstances and this new income would be assessable @ 80% or 40% in the case of a couple.

Changes in circumstances

You must tell us if you or your partner’s circumstances change. Changes in circumstances include:

• the death of partner/spouse
• an increase in income for you or your spouse/partner
• an increase in dividends from shares
• any extra rental income or rental of your home or properties
• the sale of asset
• the legal settlement/receipt of compensation
• an increase in cash assets
• an addition to relevant assets such as an inheritance or beneficiary in a Will
• legal separation

You can be fined if you don't inform your Local Nursing Home Support Office of changes in circumstances within 10 working days.

https://www2.hse.ie/services/fair-deal-scheme/after-you-receive-fair-deal-funding.html

I have a slightly related query if I may.
My Mum owns an 80% interest in her primary residence (value eur 500k) with the remaining 20% share held by my sister and myself.
Question - For the 7,5% annual loan (or deferred payment out of probate if you prefer) by the HSE are we talking 80% of 500k * 7,5% = 30k p.a over max 3 years = 90k
OR
100% * 500k * 7,5% = 37,5k p.a over 3 years or max 112,5k

many thanks