Health Insurance Fair Deal Scheme when Savings are gone

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Bedlam

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Hi All

What is the position when for example the Savings being used to fund the monthly cost of the Nursing Home are exhausted. The current monthly cost is €3,200.00 and based on this figure the Funds will be gone in a little over 18 months time.

Any help appreciated

Bedlam
 
Get on the case immediately or you will almost certainly be spending more money than you need to. It is not necessary at all to exhaust savings. The first €36,000 of your assets, or €72,000 for a couple, will not be counted at all in the Financial Assessment for Fair deal. See Fair Deal Scheme.
 
Hi demoirve

Thanks for your reply. The position.. currently the person is in the Fair Deal Scheme and therefore has been assessed, my concern is that based on the current cost as mentioned there will no money left to pay the Nursing Home in 18 months time. The 3 year rule on the 7.5% deduction for the Private Dwelling finishes in Oct 17 so I a am trying to decide what is the best course of action to take. Wait until 2017 and sell the House and use proceeds to cover the on going until that runs out or is there an alternative course that could be taken?

Bedlam
 
If you sell the house you convert it to a chargeable asset and you will increase the patients contribution by 7.5% of the net proceeds per year - the 3 year rule does not apply to cash. If you don't sell the house and the the existing savings run out, the patients contribution will be just 80% of their pension, HSE pays the rest. This is my understanding, and I have had someone in care and faced the same dilemma, but I strongly advise you to do you're own research as a mistake here will literally cost thousands !
 
Hi demoirve

Thank you for pointing this out your input is very much appreciated

Bedlam
 
Bedlam said:
The position.. currently the person is in the Fair Deal Scheme and therefore has been assessed, my concern is that based on the current cost as mentioned there will no money left to pay the Nursing Home in 18 months time. The 3 year rule on the 7.5% deduction for the Private Dwelling finishes in Oct 17 so I a am trying to decide what is the best course of action to take. Wait until 2017 and sell the House and use proceeds to cover the on going until that runs out or is there an alternative course that could be taken?
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If needed the nursing home loan to fund the part of this person’s contribution based on their home can be applied for at any stage during the first three years.

From what you say there is only going to be a shortfall for the last 6 months, so might not be worthwhile if there is another way.

Has this person ever applied to be reassessed? if not they should do so immediately.

You can apply to be reassessed annually, if savings are being used to fund this portion of their contribution, these savings will probably now be greatly reduced and a reassessment will probably reduce their contribution considerably, their savings might then get them over the 3 years.

Thereafter, if they have no other assets other than savings below $36K, they only pay 80% of whatever income they have.

As demoivre has pointed out, selling the house would increase this persons contribution considerably and possibly indefinitely, as long as they are in care.
 
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Hi twofor1

Thanks for the above input, am I reading your post correctly.... if the savings amount falls below the €36k threshold as a result of on going payments to the nursing home then the only liability one has is the 80% of income?

Bedlam
 
No, his liability on the family home remains for the first 3 years only.


One is assessed as follows;


80% of income plus


7.5% of the family home for 3 years only plus


7.5% of any other assets / savings indefinitely, but the first $36K is disregarded.
 
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