Singapore’s MOH extends CareShield Life incentives until 2024

SINGAPORE: On Tuesday (15 Nov), Singapore’s Ministry of Health (MOH) announced an extension of participation incentives for CareShield Life, the national long-term care insurance scheme.

This initiative will continue until December 31, 2024, offering Singapore Citizens born before 1980 an opportunity to join and receive up to $3,000 in incentives over a ten-year period, provided they do not have severe disability.

According to the CareShield Life website, it is long-term care insurance that provides basic financial support should Singaporeans become “severely disabled”, especially during old age, and require personal and medical care in the long run.

The CareShield Life scheme automatically covers Singaporeans born in 1980 or later.

As for citizens who were born in 1979 or earlier, participation in this scheme is optional. However, the people who were born between 1970 and 1979, are insured under ElderShield 400 and aren’t severely disabled, will be automatically enrolled in CareShield Life from the end of 2021.

The scheme’s monthly payouts, starting at $637 in 2023, progressively increase annually until the policyholder reaches the age of 67 or initiates a claim, whichever occurs first. Notably, claimants receive lifelong monthly payouts if afflicted by severe disability.

CareShield Life premiums can be fully paid through MediSave, and the Government provides means-tested premium subsidies to ensure affordability.

In a press release issued on Tuesday, MOH said previously, the Government had pledged participation incentives of up to $4,000 for all eligible Singapore Citizens born before 1980 who enrolled in the scheme by December 31, 2023.

“Since November 2021, over 205,000 Singaporeans have benefited from these incentives and joined CareShield Life to get better coverage for severe disability. “

”To continue to encourage sign-up, the participation incentives will be extended for one more year but at a lower amount of up to $3,000. The incentives will be spread out over 10 years to help offset annual premiums.”

Eligible individuals who sign up and receive coverage under CareShield Life before December 31, 2023, will still qualify for the higher participation incentives of up to $4,000, as initially announced.

The MOH encourages eligible individuals to consider joining CareShield Life for comprehensive and lifelong protection against long-term care needs.

Interested parties can assess applicable premiums, and payment terms, and submit their applications via the CareShield Life website (www.careshieldlife.gov.sg).

Additionally, those interested in enrolling elderly family members can assist them in submitting applications through the same portal.

The Ministry emphasizes the importance of this extended initiative and urges citizens to take advantage of this opportunity to secure crucial long-term care coverage.

From 1 October 2020 onwards, all 30 to 40-year-olds will begin paying premiums as they are included in this long-term insurance scheme.

Singaporeans can withdraw up to S$200 each month in cash from MediSave to supplement their “long-term care needs”.

As for the people who do not have sufficient money in their MediSave, they may use the money from their spouse’s MediSave, or from the accounts of other family members.

Lower- to middle-income residents that makeup two-thirds of households will get up to 30 per cent subsidy for their premiums.

However, if they still cannot afford it, they will be invited to apply for Additional Premium Support from the Government. The MOH added that no one will lose their CareShield Life coverage due to financial difficulties.

It was explained that they would continue to be covered for the rest of their lives after stopping to pay the premium.

The people who are enrolled between 2020 and 2024 will receive up to S$250 in transitional subsidies.

Monthly cash payouts will continue as long as any Singaporean under the scheme is severely disabled. The amount for the payouts will increase annually until one reaches the age of 67, or until when a successful claim is made, whichever is earlier.

MOH stated that once a successful claim is made, the amount of the monthly payouts will be fixed for the duration of the severe disability.

From 2020 to 2025, the potential payouts will increase at 2 per cent per year, starting from S$600 this year.

Public queries compulsory insurance scheme’s necessity and claim eligibility criteria

However, there have been questions raised by the public regarding the necessity of the compulsory insurance scheme and notable concerns regarding the stringent eligibility requirements for making claims.

Specifically, individuals are required to demonstrate a total of three disabilities, a criterion that necessitates approval by appointed doctors before a claim can be processed.

During a Parliament session in February 2021, Leong Mun Wai, a Non-constituency Member of Parliament representing the Progress Singapore Party (PSP), put forth a proposal urging the government to assume the responsibility of paying all MediShield Life and CareShield insurance premiums for every Singaporean.

This initiative aims to alleviate the financial burden on ordinary citizens and ensure the accumulation of sufficient retirement funds within their CPF accounts.

Mr. Leong emphasized the necessity for all Singaporeans to possess adequate retirement resources in their CPF accounts.

However, he highlighted the stark reality that a considerable number of individuals do not possess enough savings to meet even the basic retirement sum of S$93,000.

“This is because in addition to retirement use, the government has designated two additional users for the CPF monies, namely purchasing HDB flats and topping up the MediSave account,” said the NCMP.