Cost-cutting plan would end medical card deal for over-70s

PEOPLE REACHING the age of 70 will no longer automatically receive a medical card if the Government approves a proposed new cost…

PEOPLE REACHING the age of 70 will no longer automatically receive a medical card if the Government approves a proposed new cost-saving measure in the health sector.

The plan, being considered by the Government, would see the abolition of a scheme - introduced just seven years ago - whereby everyone over 70 receives a medical card regardless of means.

Informed sources said that the abolition of the scheme was being examined as part of a range of options to allow the health sector to live within a more stringent budgetary position next year. However, no final decision has yet been taken.

The over-70s medical card scheme was introduced in 2001 but came under strong criticism after it emerged that the numbers involved had been substantially underestimated, leaving the scheme costing more than twice the original estimate. GPs received nearly four times the existing capitation rate for treating new patients who received a medical card under the scheme.

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Last month the Health Service Executive (HSE) board was told that 43,678 new medical cards had been issued so far this year at a cost of €72 million. Each additional medical card costs €1,650.

It is understood that the Department of Health and the HSE are also exploring possible changes in the operation of the various demand-led drug-subsidy schemes.

Informed sources said health service management has estimated that if the threshold for reimbursement of expenditure under the Drug Payment Scheme was raised from €95 to €105, it would generate savings of €30 million to €40 million.

It has been estimated that savings of €40 to €50 million could be made by changes in the Long-Term Illness Scheme.

It is understood that the Department of Health, the Department of Finance and the HSE have become increasingly concerned at the cost of the demand-led and the medical card schemes.

A confidential HSE briefing note drawn up for a meeting with trade unions earlier this month says it has been provisionally informed that it will only receive the same level of funding next year as it received in 2008. In addition, it has been asked for value-for-money savings of 2.5 per cent.

The HSE note suggests that on this basis it would face a shortfall of €1 billion next year if it was to provide the same level of services as in 2008.

Meanwhile, it emerged yesterday that the HSE has postponed plans to extend the flu vaccine scheme to those aged over 50, as advised by an expert group last month, due to its financial difficulties.

The HSE said last night that the vaccine is available this year in the same manner as it has been over the past eight years to those over 65.

Martin Wall

Martin Wall

Martin Wall is the former Washington Correspondent of The Irish Times. He was previously industry correspondent