U-turn on medical cards not 'unreasonable' - Cowen

The Government has defended its u-turn on the automatic entitlement to medical cards for the elderly, insisting the overwhelming…

The Government has defended its u-turn on the automatic entitlement to medical cards for the elderly, insisting the overwhelming majority of over-70s will still have access to free care under the return to means testing.

Taoiseach Brian Cown says the changes are "not unreasonable" as all but 5 per cent of the older population on the highest incomes will continue to have access to a medical card, a doctor visit card or a grant towards GP expenses.

"The facts are 94 out of every 100 will get a medical card, a doctor's card or the €400 grant," he told the Dáil during today's Budget debate.

"The remaining will not qualify because they have a pension of more than €650 per week," he said.

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There are approximately 350,000 people aged 70 and over who have medical cards in the State, 211,000 of these people had a medical card on turning 70, so their means were assessed at some stage.

However, 139,000 applied on turning 70 and have never been means tested and many of these will now lose their entitlement to a full medical card.

To compensate these people the Government is introducing a new Health Support Payment for people aged 70 years and over who do not qualify for either a medical card or a GP visit card.

This payment will amount to €400 for a single person, and €800 for a couple, and will be paid annually.

Nevertheless some estimates suggest that only 40 per cent of over 70s will retain a full medical card if all are means tested, meaning that six out of ten older people may have difficulty funding their medical costs.

Labour leader Eamon Gilmore said many elderly people who had stopped paying their health insurance on receipt of the medical card would now find it difficult to get adequate cover from health insurers.

"This move is going to cause untold distress, anxiety and worry to elderly people," he told the Dail today.

Fine Gael leader Enda Kenny claimed the u-turn represented "panic" on the part of the Government.

This evening, Labour party spokeswoman on health Jan O'Sullivan called on the Government to reverse the decision on the medical card for over-70s, calling it "one of the most cynical political stunts" seen in some time. She also criticised the €400 payment to those with incomes of less that €650 who don't qualify for the card as "insulting" and a "gimmick".

"There was a provision in some circumstances for means testing of some over-70s for medical cards before the Budget. In that instance, the weekly threshold for eligibility for a married couple was €596.50. Now, under
the new provisions, that threshold has been slashed to €298," she said.

"In other words, people will not only have to undergo a means test, but they will also face much more stringent criteria than ever before. This seriously jeopardises the eligibility of pensioners who have a small occupational
pension."

Eoin Burke-Kennedy

Eoin Burke-Kennedy

Eoin Burke-Kennedy is Economics Correspondent of The Irish Times