Fine Gael TD Fergus O'Dowd today said the Government was implementing a stealth tax on the elderly by retaining a quarter of the interest on accounts the Health Service Executive (HSE) administers for patients in long-stay care.
Minister for Health Mary Harney was trying to "sneak" the measure through during the quiet August period to avoid public scrutiny, said Mr O'Dowd, one of the TDs instrumental in uncovering the scandal low standards in some nursing homes.
"The fact is that when the Minister outlined her plans for funding nursing home care late last year this measure was not included; to introduce it now is completely unjustifiable," the Louth TD said.
This morning's Irish Timesreports that new regulations later this year will allow the HSE retain 25 per cent of the interest generated on the accounts it holds on behalf of long-stay patients as an administrative fee.
Nearly €100 million in about 15,000 accounts is being administered by the HSE on the patients' behalf, according to the report.
Age Action said if the HSE accepts responsibility for the accounts then it must ensure they are managed in the best interest of the patient. "Age Action is aware of cases where funds in private property accounts of older people were used to decorate the resident's nursing home bedroom, to buy a bed and an air mattress," spokesman Eamon Timmins said.
The charge, he said, would bring to an end the illegal taking of interest by health boards.
He also called for an independent supervisory committee to be established to oversee expenditure from patients' private accounts.
"The residents affected by this measure are among the most vulnerable within the health service and their interests need to be protected," Mr Timmins added.
Labour Party health spokeswoman Liz McManus said the plan was "a mean and petty move [and] may also be open to legal charges".
She also joined Mr O'Dowd in attacking the Government's failure to reimburse all patients who had been illegally deducted charges for long-term care between 1976 and 2004.
In the region of €1 billion was wrongly charged for services the patients were entitled to for free. The Government attempted to have the charges legalised retrospectively but were shot down in the Supreme Court.
The HSE this week acknowledged that its system for repaying the deductions was not working well and less than €100 million had been returned to date.
Ms McManus said: "I have received complaints from members of the public about delays in dealing with applications and about the difficulties they have experienced in getting any information on the status of the claims that have been submitted.".
The Government's treatment of elderly people and long-stay patients has been "shameful", she added.