A Government spokesperson has confirmed tonight that there was a legal strategy in place around nursing home charges.
However, the spokesperson said it pre-dated July 2011 and was pursued by successive governments.
Claims by a whistleblower on the issue were published in yesterday's Mail on Sunday newspaper.
It was claimed that the State had pursued a strategy to curb financial compensation to the families of people who were forced to pay nursing home charges over three decades.
Many medical card holders had to pay for this care over a 30-year period but in 2005 it was found that they had been entitled to it free of charge.
This resulted in more than 1,000 patients filing complaints with the Office of the Ombudsman.
"It has been misrepresented," said the Government spokesperson this evening.
"The strategy was to defend the cases relating to private nursing homes on several grounds, in particular that medical card holders did not have an unqualified entitlement to free private nursing home care."
The spokesperson added that a limited number of individual cases were settled where there were complicating factors.
"No case ever proceeded to a hearing. In the case of public nursing homes, a scheme was put in place and 480m was paid to former residents or their families," they said.
Minister for Health Stephen Donnelly has sought advice from the Attorney General and a detailed briefing from his department on the issue.
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