An appeal has been made to the Minister for Health to amend medical card regulations for elderly people who avail of a scheme to sell their homes to local authorities for housing in senior citizen accommodation.

Mr Jim Mitchell (FG, Dublin Central) said in a written question that those selling their homes now feared they would lose their medical cards or other means-tested entitlements because they were selling their homes for "market value minus the deduction in turn for housing them in senior citizen accommodation".

Mr Mitchell asked that the medical card guidelines be changed so "the proceeds of the sale of their house in these circumstances be exempted from any means test".

The Minister, Mr Martin, said he had asked the Eastern Regional Health Authority to liaise with Dublin Corporation in relation to the scheme, "with a view to allaying any fears older people may have regarding its operation".

Mr Martin said that since 1988, more than 200 senior citizens had availed of the scheme, which pays one third of market value for those between 60 and 69 years, one quarter between 70 and 79, and one fifth of market value for householders over 80.

Any investments or savings that could generate an income are taken into account when assessing eligibility for medical cards.

"Interest from savings is taken into account but after that it is general practice to disallow a modest amount of savings when assessing the amount of savings or assets which could be redeemed as an income," the Minister said.

He said income guidelines for medical card entitlement for those over 70 years were being doubled over a three-year period.

In a question to the Minister for Social, Community and Family Affairs, Mr Ahern, Mr Mitchell said many senior citizens were interested in moving to secure and comfortable dwellings.

However, they were "fearful of doing so because of the possibility they may lose their means-tested benefits, including noncontributory widows' and old age pensions, carers' allowance and disability allowance as well as the medical card".

The Minister informed Mr Mitchell in a written reply that a detailed review was under way within his Department of the "sale of residence" provisions.

Under the provisions, anyone aged 66 or over could sell up and move into appropriate accommodation with the balance of the proceeds from their home being exempt from means testing up to a ceiling of £75,000.