Thousands of medical card holders 'face cut tobenefits over SSIAs'

THOUSANDS of medical card owners who have the Government special savings schemes could have their benefits cut when they mature because it will push them over the income limit, the Labour Party warned yesterday.

The Department of Health has confirmed income people get from Special Savings Investment Accounts (SSIA) will be assessed on the same basis as other savings and investment.

The annual interest people earn from SSIAs will be included in their income when they are means tested for the medical card by health boards, a department spokeswoman said.

This prompted Labour's health spokeswoman Liz McManus to warn this regulation could push thousands of medical card owners over the income threshold when their SSIAs mature.

The income limit states any single person earning more than €7,410 a year will not qualify for a medical card. If they have one child the limit increases to €8,654 and two children up to €8,762.

But 1.1 million people have medical cards in Ireland and thousands of these are just barely under the income threshold limit, Deputy McManus said.

"If medical card holders get even a €100 over the income limit it will easily push them over the threshold for SSIAs," Ms McManus said. Health Minister Mary Harney must seek a derogation for SSIA savings from the medical card means test, Ms McManus said.

Social and Family Affairs Minister Seamus Brennan said yesterday he would be seeking Government approval to make an exception of SSIA savings when assessing people's income in various means tests for people on unemployment and disability benefit.

While the Department of Social and Family Affairs allows people on Social Welfare to have savings of €12,697 before their entitlements are affected, the minister has asked officials to review the number of people who have over that amount and are also SSIA holders.

"Let me be clear about this - there is no question of cutting anyone's benefits, that is absolutely not on the agenda," Mr Brennan told RTÉ.

Meanwhile, a Department of Health spokes-woman said health board chief executives had the powers to allow people over the income limit to keep their medical cards if they were satisfied circumstances justify it.