The Department of Health has estimated that 140,000 people over 70 years of age currently have an automatic entitlement to a medical card because of their age. These people did not have a medical card before they reached 70.
Following today’s Budget changes, which take effect from January 2009 , the Health Service Executive is to write to these 140,000 over 70′s group asking them to re-apply for a medical card, subject to a means test.

Mary Harney said that she expected that around 14,000 of these people over 70 would keep their full medical card, around 35,000 would receive a GP visit card and 70,000 would get a health support payment of €400 a year. The remaining 20,000 will not get any help benefit. A helpline is to be set up to assist people with queries.

Income Thresholds:
LATEST INCOME RULES CHANGED OCT 17TH – SEE HERE
The weekly net income threshold for a full Medical card is €201.50 for a single person, €173.50 for a single person living with family and €298 for a married couple
The thresholds for a GP visit card are €302 for a single person, €260 for a single person living with family and €447 for a married couple.
The HSE say that these thresholds ares net of expenses like rent or mortgage, and regular medical expenses like GP fees, medications and appliances.

If over 70′s say they have to visit a GP once a week – this will be taken into consideration in the means test. GP’s could be very busy between now and January .
If over 70′s have income which is above these thresholds but below €650 for a single person and €1,300 for a married couple – they will still qualify for an annual cash payment of €400 each. (The health support payment)

Anyone with income over €650 each a week will have to fend for themselves. (Thats an annual net income of €33800) – paying €50 to €75 for a GP visit and possibly €100 for an A&E visit if they don’t go to the GP first.

Hidden away in the budget documents was a change that will have a big effect on families with children at secondary school. The cost of transport to secondary school is to rise to €300 a year. It is currently 56 aterm for Junior Cert and 78 a term for TY or Leaving Cert. This is an increase of at least €66 euro per child – possibly more if the charges are the same for all ages. This will be even harder on those with children aged 18 still at school because the Child Benefit is being withdrawn fro them from 2010 too.

The Drugs payment scheme – which currently means that patients only have to pay the first 90 euro of prescription costs in a month – is having the threshold increased by €10 euro a month. Sick people not on medical card will be €120 a year worse off each year.

Budget 2009 changes:
The charge for non medical card holders who attend Accident and Emergency department without a GP referral letter is increasing from €64 to €100 euro.
Maybe they will be less overcrowded now … ?

Mortgage interest relief for first time buyers will be increased as follows: (previously 20%)

From 1 January 2009 tax relief is 25% for the first two years.
In years 3-5 tax relief is 22.5% and in years 6-7 relief is 20%

These changes will apply to\ all first time buyers who purchased from 1 January 2005.

Relief for non-first time buyers will be reduced from 20% to 15%.

A new air travel tax of €10 euro per person is to be intriduced from January 2009. A lower €2 tax will apply on shorter journeys – full details not yet available.

Todays Budget announced an increase in DIRT (Deposit Interest Retention Tax) to 23%.

From midnight tonight – excise duty will increase on wine and cigarettes by about 50c. Beer and spirits are unchanged for some reason.