Changes to improve ElderShield proposed

April 4, 2007

Among them: Higher payouts and a two-tier scheme

By Judith Tan

Proposed changes

A TWO-TIER ElderShield has been proposed by the Ministry of Health (MOH) - the basic plan, and an add-on providing for higher payouts.

The basic ElderShield scheme, in place for the past five years, will be retained for all Singaporeans to pay for long-term disability care.

The second tier, referred to by Health Minister Khaw Boon Wan as 'ElderShield Supplements', will be offered by insurers at higher premiums, payable in part by Medisave.

In addition to the proposed new tier, several other tweaks to improve ElderShield have also been suggested (see box), and MOH launched a public consultation exercise yesterday to gather feedback on the changes.

Among the main revisions: A proposal for payouts on the basic scheme to go up from $300 to $400 a month, with repayment periods extended to six years, from the current five. This will raise payouts to a maximum of $28,800, up from the present $18,000.

But Mr Khaw said yesterday that 'this big jump would require a few dollars' increase in premium'. Because of this increase, he said, there was a need to consult Singaporeans.

Proposed changes

Current ElderShield

· Payouts - $300

· Payment period - Five years

· Insurers - NTUC Income, Great Eastern Life

· Supplementary products - Not allowed

· Assessment fees - Out-of-pocket payment: $25 at clinics, $100 for house calls

Proposed ElderShield

· Payouts - $400

· Payment period - Six years

· Insurers - Open to more insurers

· Supplementary products - Allowed (subject to MOH guidelines)

· Assessment fees - Fees reimbursed to successful claimants