Around nine thousand people are expected to apply for the new fair deal scheme every year.
The system for paying fees for residential care comes into effect from the 27th of October.
It allows older people to pay for their care by contributing up to 80 percent of their income and 5 percent of the value of their assets – like their homes – to the nursing home fees.
The State will pay the balance of the cost – thought to be in the region of 70 percent of the overall cost.
Health Minister Mary Harney explains that the assets of family members will not be affected.
