HSE faces €77m deficit in repayment scheme

THE HEALTH Service Executive (HSE) is facing a potential deficit of about €77 million in funding the nursing home repayment scheme…

THE HEALTH Service Executive (HSE) is facing a potential deficit of about €77 million in funding the nursing home repayment scheme this year.

The HSE received €150 million from the Exchequer to meet the cost of the final year of the scheme. However, it now estimates that the amount to be paid out in total will be significantly higher.

The HSE indicated to health sector trade unions earlier this month that it would be seeking further funding from the Government to meet this additional cost.

One of the “major assumptions” underlying its current financial projections for the remainder of the current year is that “the long-stay repayment scheme which is indicating a deficit of €77 million at present is fully additionally funded”.

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Some informed sources have suggested that the health service could seek to use the €85 million originally allocated by the Department of Health this year for the separate “Fair Deal” scheme to pay for long-term care for older people to offset the additional cost of the repayment scheme.

The money earmarked for the Fair Deal scheme was withdrawn for use for this purpose by the Department of Health in July as part of the first round of Government cutbacks.

The introduction of the Fair Deal scheme has been delayed due to legal difficulties.

The nursing home repayment scheme was established by the Government to repay older people (and their estates) for money which had been illegally charged for their care in long-term facilities around the Republic.

When applications under the scheme closed last December about 36,000 people had sought repayments.

In a statement yesterday a spokeswoman for the scheme administrator said that a total of 17,700 applicants had been made an offer of repayment under the Health Repayment Scheme.

“Repayments totalling more than €274 million have been made to 13,300 applicants. Around 36,000 applications were received by the scheme administrator up to the closing date of December 31st, 2007.

“A total of 13,800 applications to the scheme have to date been found to be ineligible and were subsequently rejected by the scheme administrator.

“The scheme administrator has received 5,000 notices of intention to appeal,” she said.

Figures that were released last week revealed that up to that stage the appeals officer had determined a total of 2,058 appeals.

The figures released last week showed that in 380 instances, the appeals officer had recommended that an increased offer be issued.

The figures issued last week also revealed that 5,200 of the payments made up to that stage were allocated to living applicants who were currently residing in nursing homes or other long-stay facilities.

About 8,100 payments had gone to the estates of deceased persons.

Martin Wall

Martin Wall

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