Health Insurance Fair Deal Loan (ancillary support)

My mother went into a nursing home this year. We applied for the fair deal scheme, but are not receiving any subvention as her assessed contribution exceeds the level of nursing home fees. I am now considering availing of the nursing home loan scheme (with respect to the PPR part of contribution, assessed at €800 per week, prop valued circa €600k). I have 3 questions as follows:



1. The nursing home fees are circa €10k per annum more expensive than the fees payable under the fair deal scheme. If we apply for and drawdown the loan under the fair deal scheme, does this mean she is then categorised as a fair deal patient, and so the nursing home is restricted to charging us at the fair deal level?



2. I understand that interest is charged on the loan at the rate of CPI. Does anyone know if there is anymore detailed information available on this interest rate calculation?



3. There are certain circumstances specified when the loan must be repaid (e.g. selling house, death etc). Can you choose to repay the loan early, apart from the pre-specified circumstances?

Any info/help much appreciated.

1. If your mother changes to Fair Deal, then she should only pay the Fair Deal rate. Bear in mind though a private resident sometimes gets extras for their significantly higher fee. As a Fair Deal resident your mother might no longer be entitled to these extras. Nursing homes differ greatly on this, so best to discuss with your mothers nursing home. One example, the activity’s charge typically €50-€70 weekly (In Dublin anyway) is included in the private fee but is a compulsory extra for Fair Deal residents in any of the private nursing homes that I have had dealings with.

2. Have a look at pages 70-72 in the link below, it explains how CPI is calculated and shows an example. Fair play if you can follow it. I was totally lost.



One of my relations passed away this year after being under Fair Deal for 2.5 years and availing of the loan. In round numbers the amount owed was €67,000 when CPI adjusted the amount owed was €67,700.

3. Repaying the nursing home loan. The nursing home loan will need to be repaid after death. You can choose to repay this any time before death.

https://www2.hse.ie/services/fair-deal-scheme/nursing-home-loan.html#Repaying-the-nursing-home-loan