The Minister for Health and Children, Mary Harney, has announced that a new scheme for long term care of the elderly is to come into effect in January 2008.
Under the new assessment scheme, everyone will be asked to contribute towards their care according to their means.
Elderly people will contribute 80% of their disposable income and a charge of up to 15% on the value of their residence will apply, which can be paid after their death.
Only elderly people assessed to be high dependency will be eligible for nursing home bed support from next year and there will be a cap on the scheme.
Those who are assessed to be low or medium dependency will be eligible for community care with support through home care packages.
Ms Harney has described the scheme as fair, accessible, and affordable.
She also said the number of public nursing home beds would have to be increased.
It is understood that no elderly person currently in a nursing home will pay more, but future applicants for support will do so from 2008.
Age Action Ireland, the support group for older people, has said the plan marks a significant departure in the way health care is funded.
It also claimed the policy was discriminatory against older people.
The Taoiseach has said that he does not believe that the care for the elderly package will put more pressure on older people.
Speaking at the Irish Hospice Foundation's event of Thanksgiving in Kilmainham tonight, Mr Ahern said he believed the package provides more certainty for older people.
He also said the system could not remain as it is and that if there were valid points raised during the consultation process, there would be plently of time to address them.
The Government's new policy on care of the elderly follows a number of consultants' reports in 2002 and more recently an inter-departmental group report involving the Departments of Health and Social Welfare.
Two major factors, a projected increase in the number of elderly people and the cost of care for this group, have forced the Government to rethink how care is paid for and organised.
This means that the distinction between a public and private nursing home bed is to end.
