Care Under The Fair Deal Scheme
A recent court case highlighted the sad situation of an elderly woman being forcibly admitted to a nursing home because the care she was receiving at home was unqualified and detrimental to her health. She was understandably distressed but the order was made because it was her best interests. Of course, cases like this should not end up in a courtroom and the vast majority of families do their very best when caring for elderly relatives.
Some 50% of admissions to a nursing home are via acute general hospitals. The rest are from home transfers after home care is no longer enough. A Care Needs Assessment and financial assessment are both carried out beforehand. You get to select the nursing home you want (assuming it has a bed) and the cost is borne by the HSE.
Cost of Care
Each resident makes a contribution based on 80% of income(e.g. pension, rent, dividends) plus 7.5% of all assets such as money in the bank (savings of up to €36k/€72k single/couple disregarded), plus 7.5% of family home value (capped after three years to 22.5%), but the contribution will never be more than the cost of care.
Asset contributions can be deferred until after death/ house sale under a loan agreement with the HSE called Ancillary State Support but most families pay the bills each year.
You do not have to avail of Fair Deal. This is important if you earn a higher income or what substantial assets, e.g. a second property, business etc. You can choose to simply pay the nursing home fees privately (but not in public facilities), and claim full tax relief on the bill. Average nursing home fees are €1250 per week, and higher in many Dublin centres, so it is defiantly worth doing your calculations in advance.