By Shukry Rashid
The Government has accepted the ElderShield Review Committee’s (ESRC) recommendations on changes to the scheme to better address the long-term care needs of Singapore’s ageing population.
The enhanced scheme will be called CareShield Life and will provide better protection such as higher and lifetime payouts compared to the current ElderShield scheme.
CareShield Life will similarly cover those who have severe long-term disabilities that render them unable to perform three of six daily activities – toileting, washing, dressing, self-feeding, moving around and transferring.
Enhancements
The Government will implement the compulsory CareShield Life in 2020 for future cohorts when they turn 30 years old.
Those aged 30–40 years old in 2020 will be the first cohort to join the scheme. Current cohort on Eldershield born before 1980 (age above 41) will have the option to join from 2021.
Compared to the current Eldershield scheme, which has a maximum of six years payout from the point of disability, the CareShield scheme will provide payouts for life.
The payouts will also increase to $600 from the current $400. The $600 will increase the later someone starts claiming in life.
For CareShield Life to be sustainable, the premiums will be adjusted regularly and actuarially priced to take into account changes in payout quantum. Even though premiums are higher, they can be paid fully by MediSave.
The Government, which will administer the CareShield Life, will provide subsidies to those who may not be able to afford it. The ElderShield is currently managed by private insurance companies and is optional.
Health Minister Gan Kim Yong said that the subsidies “will particularly help the lower to middle-income families to ensure the premiums will always be affordable.” The Government emphasised that nobody will fall out of the scheme if they are unable to pay for it.
Keeping It Affordable
The Government will provide means-tested premium subsidies of up to 30 per cent under CareShield Life.
Transitional subsidies will be provided for the first five years from 2020 for future cohorts to ease their transition into CareShield Life.
Additional premium support will also be given to those who are unable to pay even after premium subsidies.
Better Administration
The claims and periodic reassessment process will also be simplified. These include considering the impact of cognitive impairments on functional disability. For example, a person with dementia may be able to clothe himself, but he may not be able to do so in the future as the condition degenerates.
There will also not be a need for a separate disability assessment by an assessor for claims if an equivalent assessment had already been robustly conducted by a qualified healthcare professional providing care to the policyholder.
Should periodic reassessment be needed, it should be better targeted so that clearly permanently disabled claimants are exempted from reassessment.
The assessor accreditation will be expanded to include occupational therapists, physiotherapists and nurses.
First-time disability assessment fees for claims will be waived so that eligible policyholders, especially the lower-income, are not deterred from making a claim.
Current Cohort
For the current cohort who are or will be on ElderShield, they will be covered for all pre-existing conditions should they decide to opt into CareShield Life. There will also be no age limit to when they can join CareShield Life.
“We have not considered imposing an age limit so far, but for the older folks who want to join, the premiums will be quite significant. Whether or not it will be meaningful for them to participate, it is best to have direct consultation with perhaps the CPF Board or their financial advisors to understand their needs and see which is the best alternative. There will not be an age limit, but the older you are, the more challenging it will be for you to participate,” said Mr Gan.
As there are complexities to the current cohort’s coverage ranging from various additional coverages options (i.e. ElderShield 300 or ElderShield 400) and their own private insurance plans, premiums for CareShield Life will vary.
More information for this cohort will be announced in the second half of 2018.
ElderShield Review Committee
The ESRC was appointed by the Government in October 2016 to review the ElderShield scheme so that it better addresses the needs of Singaporeans who become disabled, especially during their old age.
Since then, the ESRC has engaged over 800 Singaporeans of all ages through 26 focus groups discussions to gather their opinions.
NTUC Immediate Past President Diana Chia, who is part of the ESRC, said: “The fact that the CareShield Life covers severe disability, and it can happen to anybody at any time of your life, there is a lot more communication that needs to be done in this area.”
QUICK FACTS
What is CareShield Life?
CareShield Life is an enhanced version of ElderShield Life and starts in 2020. It will apply to future cohorts of Singaporeans from age 30 as well as those in the 31 to 40 age group in 2020. The scheme covers those who are unable to perform 3 out of the 6 daily activities (toileting, washing, dressing, self-feeding, moving around, transferring).
Here are the enhancements:
If you are on ElderShield, you will benefit from all the enhanced coverage under CareShield Life if you opt in.
More details on how to opt in will be announced in the 2nd half of 2018.
