Claims and Payouts under CareShield Life
Ministry of HealthSpeakers
Summary
This question concerns MP Gan Thiam Poh’s proposal to allow CareShield Life claims for individuals unable to perform one Activity of Daily Living (ADL) via prorated monthly payouts. Senior Minister of State Edwin Tong Chun Fai responded that the scheme targets severe disability to ensure premium affordability and long-term financial sustainability for all policyholders. He explained that expanding coverage to one ADL would significantly increase premiums, as even prorated payouts would not offset the costs of a larger claimant pool. Senior Minister of State Edwin Tong Chun Fai noted that those seeking extra coverage can purchase private Supplement policies or access safety nets like the Seniors' Mobility and Enabling Fund, MediFund, and ComCare. He concluded that while the Ministry considers various design options, private insurers already provide coverage for individuals who are unable to perform fewer than three ADLs.
Transcript
23 Mr Gan Thiam Poh asked the Minister for Health whether the Ministry will consider allowing those who are disabled and insured under CareShield Life to make claims and commence receiving a prorated one-third of their monthly payouts upon their inability to perform one Activity of Daily Living (ADL) independently instead of waiting till they are unable to perform three or more ADLs independently before receiving payouts.
The Senior Minister of State for Health (Mr Edwin Tong Chun Fai) (for the Minister for Health): Mr Speaker, Sir, CareShield Life will protect Singaporeans against the long-term care costs of severe disability by providing monthly cash payouts when a policyholder is unable to perform three or more Activities of Daily Living (ADL). To keep the scheme sustainable and premiums affordable for all, it is targeted at severe disability, given that the needs and costs for caring with someone with severe disability are most significant.
Should the scheme be expanded to cover mild to moderate disabilities, premiums will be significantly higher and affordability will be affected. Allowing policyholders to receive payouts, whether full or partial, once they are unable to perform one ADL will result in higher premiums. To illustrate, if policyholders are able to receive payouts once they are unable to perform two ADLs, premiums will need to increase by about one-third. If we loosen the claims criterion further to one ADL, premiums will increase even more significantly. Reducing the payouts by two-thirds at one ADL will not fully offset the premium increase required to cover the individuals who are unable to perform one ADL, as there will still be more claimants overall.
Singaporeans who wish to be have better coverage, including making a claim when they are unable to perform two ADLs, can consider purchasing Supplement policies from the private insurers, which is currently already available under the existing ElderShield. We also have other Government assistance schemes such as the Seniors' Mobility and Enabling Fund as well as Government-funded safety nets such as MediFund and ComCare, to complement personal savings and family support to help Singaporeans with mild or moderate disabilities and who are facing financial difficulties.
Mr Speaker: Mr Gan Thiam Poh.
Mr Gan Thiam Poh (Ang Mo Kio): Is it possible that Ministry will consider to give it as an option to all Singaporeans to consider, even though it is lower payout or higher premium, for one ADL, rather than wait for the three to be fulfilled?
Mr Edwin Tong Chun Fai: This will be taken into account when designing the CareShield premiums. But as I said, if you take a leaf out of the ElderShield scheme, there is already coverage by way of supplements for those who have less than three ADLs.