Moving into an EMS - do you have to sell your house?

Moving into an EMS - do you have to sell your house?

"My grandfather suffers from dementia and we're going to have to put him in a nursing home. The cost of this nursing home is around CHF 95,000 a year. My grandfather's only asset is his house. He also receives an annual pension of CHF 24,000. Will we have to sell this house? Is there any assistance available? What if my grandmother is still living there?

Martine, Geneva

First of all, we need to look at how these medico-social establishments are financed. They are mainly funded from three sources: the State, health insurance and contributions paid by residents.

The insurance company pays a daily amount of between CHF 9.00 and CHF 108.00 per day, calculated on the basis of the resident's daily stay.

Residents pay a daily contribution out of their own pocket, which varies from one establishment to another. This often ranges from CHF 195 to CHF 265 per day, to which must be added a contribution of CHF 8 per day towards care costs.

If the resident has no assets or income, the State will pay the costs through supplementary benefits.

However, before granting these benefits, the State establishes the claimant's financial situation, taking into account all his or her income, as well as a proportion of his or her assets.

The calculation of income is governed by federal and cantonal law. Each year, the canton of Geneva takes into account one fifth of the applicant's assets (after deduction of a lump sum of CHF 60,000 for a couple or CHF 37,500 for a single person), which is added to the applicant's income. Thus, for a single person with an annual income of CHF 24,000 and assets of CHF 400,000, the State will take into account an income of CHF 96,500. If necessary, supplementary benefits will pay the difference between this sum and the cost of the EMS. These benefits will therefore increase as the beneficiary's assets decrease.

If the assets are tied up in a property where the spouse lives, an additional CHF 300,000 is deducted from the assets. Thus, with a house worth CHF 400,000 for all assets, the income taken into account will be CHF 32,000 for this claimant of supplementary benefits.

This example is extremely simplified to give an idea of the mechanism applicable to the situation you describe; the calculations can be complex and should therefore be checked by a specialist before any decision is taken.