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Ireland: Call for 1.5% Rise in PRSI to Care for Elderly
By
Christine Newman
June 26, 2003 Ireland - An increase in PRSI contributions
is the recommended option in a Government study on how to fund long-term
elderly care. The report, on behalf of the Department of
Social and Family Affairs, calculated that PRSI contributions would have
to be increased by 1.5 per cent. The study, undertaken by Mercer Ltd, said
that although other options were considered "we consider that social
insurance financing offers most advantages". Based on PRSI calculations in the study, it
stated: "In respect of employees, the total contribution rate, for
example in the period 2001 to 2011, would be 3 per cent (1.5 per cent
payable by the employee and 1.5 per cent payable by the employer)." The study was published yesterday, along with
a report on a review of the Nursing Home Subvention Scheme which called
for a new model of funding based on home-care over residential. Both reports emphasised the projected
increase in the elderly population, and the rising costs of care. The publications coincide with a review of
nursing home regulations to be undertaken by the department. The Minister for Health and Children, Mr
Martin, said at the launch that the Department's review would offer them
the opportunity to build on the findings in the two reports. "The first step being undertaken in this
regard is to establish a steering committee consisting of the various
stakeholders, including nursing home owners, to oversee the review." The Nursing Home Subvention Scheme report,
prepared for Government by Prof Eamon O'Shea at the NUI Galway,
recommended a new strategy which would include a community-based
subvention scheme for vulnerable older people living at home. It stated that there seemed little
justification for the continued public subvention of low and medium
dependency residents in either public or private long-stay care without
first attempting to care for these people in the community. The Mercer report considered other possible
options for financing future long-term care. It concluded it was not
reasonable to expect people to provide for long-term care costs by means
of savings or the accumulation of assets, with the exception of housing
assets. "In conclusion, our view is that tax
reliefs or premium subsidies are unlikely to stimulate the long-term care
insurance market to the extent of catering for the long-term care needs of
more than a relatively small proportion of the population." The Minister said this year over €110
million was being made available to administer the subvention scheme. In
the first year of the scheme in 1994, a total of 3,271 people were
subvented at a cost of €15 million. The number of people availing of the
scheme today was about 8,300. The Minister for Social and Family Affairs,
Ms Coughlan, said she hoped the Mercer report would facilitate discussion
and debate on the many strategic issues relating to the development of
policy in the area. Yesterday, Mr Paul Murray, for Age Action
Ireland, said he welcomed the suggestion that the subvention system should
be reviewed, and that payments should be given to older people to stay at
home rather than go into long-stay care. The chief executive of the Irish Nursing
Homes Organisation, Mr Paul Costelloe, welcomed the establishment of a
consultation process in relation to the scheme. Mr Michael Ring, Fine Gael's social and family affairs spokesman, said he believed the Government was merely trying to soften up the public for an increase in PRSI. Copyright
© 2002 Global Action on Aging
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