The Government will today announce how it plans to refund some 22,000 residents of State-run institutions and at least 40,000 families of deceased residents who were illegally charged for care. Mark Brennock, Chief Political Correspondent, reports
The Cabinet yesterday approved Minister for Health Mary Harney's plan, which will require legislation to back it. A supplementary estimate will also have to be approved by the Dáil to release between €500 million and €1 billion needed to meet the bill.
The 22,000 people living in nursing homes and other institutions who were wrongly charged will be repaid all the money illegally taken, no matter how long they have been in residential care.
The estates of residents of such institutions who paid these charges but who died in the six years prior to December 2004 will also be repaid in full. However, it is expected that the Government's plan will not allow for repayments to the estates of those who died more than six years before that date.
Because some of the charges were imposed a considerable number of years ago, the scheme will take account of inflation. The level of this inflation-proofing was not clear last night, and it is not yet known if money taken from residents in the past will be repaid at its current value. The repayments arise from a decision by the State to charge elderly people for nursing-home care since the mid-1970s even though there was no legal basis for the charges.
The Government received legal advice late last year, sought by Ms Harney shortly after she became Minister for Health, saying that those entitled to medical cards should not have been charged. The scheme is expected to be administered by the Health Service Executive, but with the assistance of an outside company. The contract to provide this assistance is likely to be put out to tender.
Ms Harney will bring forward legislation very shortly to provide a statutory basis for the scheme.
Minister for Finance Brian Cowen will introduce a supplementary estimate to allow the Dáil to vote the €500 million to €1 billion to meet the cost of the claims.
It is not yet known if this estimate - which allows for spending over and above what was agreed in the Budget - will be introduced this year. Government sources said yesterday that this depended on how quickly the scheme begins to operate and claims are received.
Ms Harney has said those seeking refunds will not face significant administrative obstacles. The outside company will ensure that the large number of claims will be processed quickly. There will also be an appeals system for those unhappy with a decision on their claim.
The Government sought legal advice some months ago on whether medical-card patients who were cared for in private nursing homes are also entitled to refunds. A decision to compensate them would increase the bill considerably.