The Department of Health yesterday insisted that it had not made an oversight when it imposed nursing home charges on the over-70-year-olds despite their entitlement to free medical care.
The Fine Gael TD, Mr John Perry, had claimed that all those over the age of 70 should be exempt from any health-care charges because the Health Miscellaneous Provisions Act 2001 allowed them to have a medical card, regardless of their means.
People in public nursing homes, or private nursing home beds that have been contracted by health boards, pay charges towards the cost of their care.
Mr Perry said many elderly people had to pay their entire pension plus top-up charges to meet the costs. He estimated that thousands of elderly people were owed more than €100 million because they had been illegally charged for the cost of long-term nursing care since 2001. He claimed that the State became aware of this two and a half years ago but "chose to conceal it".
He said the Government must immediately refund the money and clarify the situation for the future.
However, a spokesman for the Department of Health pointed out that the 2001 Act entitled the over-70-year-olds to "free medical treatment" whereas nursing home care involved the provision of "shelter and maintenance".
Mr Perry rejected this and said the 2001 Act gave "full eligibility to free inpatient services".
The Department of Health spokesman said the Department was consulting with the Attorney General on the issue.
The Department "will address this situation in the light of his advice as soon as it is received", he said.
The Department was committed to "the preparation of new legislation to update and clarify the whole legal framework for eligibility and entitlements in regard to health services", the spokesman said.
Under the Health Strategy, the Department had taken the view that it was fair that all those in receipt of publicly-funded residential long-term care should make some contribution towards accommodation and daily living costs, if they could afford to do so.
He said a working group had been established to review the operation and administration of the Nursing Home Subvention Scheme and it would be addressing this issue.
The spokesman said he could not comment on the implications if the Attorney General took the view that all over-70-year-olds should be entitled to free nursing home care.