An increase in PRSI contributions is the recommended option in a Government study on how to fund long-term elderly care.
The report, on behalf of the Department of Social and Family Affairs, calculated that PRSI contributions would have to be increased by 1.5 per cent.
The study, undertaken by Mercer Ltd, said that although other options were considered "we consider that social insurance financing offers most advantages".
Based on PRSI calculations in the study, it stated: "In respect of employees, the total contribution rate, for example in the period 2001 to 2011, would be 3 per cent (1.5 per cent payable by the employee and 1.5 per cent payable by the employer)."
The study was published yesterday, along with a report on a review of the Nursing Home Subvention Scheme which called for a new model of funding based on home-care over residential.
Both reports emphasised the projected increase in the elderly population, and the rising costs of care.
The publications coincide with a review of nursing home regulations to be undertaken by the department.
The Minister for Health and Children, Mr Martin, said at the launch that the Department's review would offer them the opportunity to build on the findings in the two reports.
"The first step being undertaken in this regard is to establish a steering committee consisting of the various stakeholders, including nursing home owners, to oversee the review."
The Nursing Home Subvention Scheme report, prepared for Government by Prof Eamon O'Shea at the NUI Galway, recommended a new strategy which would include a community-based subvention scheme for vulnerable older people living at home.
It stated that there seemed little justification for the continued public subvention of low and medium dependency residents in either public or private long-stay care without first attempting to care for these people in the community.
The Mercer report considered other possible options for financing future long-term care. It concluded it was not reasonable to expect people to provide for long-term care costs by means of savings or the accumulation of assets, with the exception of housing assets.
"In conclusion, our view is that tax reliefs or premium subsidies are unlikely to stimulate the long-term care insurance market to the extent of catering for the long-term care needs of more than a relatively small proportion of the population."
The Minister said this year over €110 million was being made available to administer the subvention scheme. In the first year of the scheme in 1994, a total of 3,271 people were subvented at a cost of €15 million. The number of people availing of the scheme today was about 8,300.
The Minister for Social and Family Affairs, Ms Coughlan, said she hoped the Mercer report would facilitate discussion and debate on the many strategic issues relating to the development of policy in the area.
Yesterday, Mr Paul Murray, for Age Action Ireland, said he welcomed the suggestion that the subvention system should be reviewed, and that payments should be given to older people to stay at home rather than go into long-stay care.
The chief executive of the Irish Nursing Homes Organisation, Mr Paul Costelloe, welcomed the establishment of a consultation process in relation to the scheme.
Mr Michael Ring, Fine Gael's social and family affairs spokesman, said he believed the Government was merely trying to soften up the public for an increase in PRSI.