Saturday, 29 December 2018

CareShield Life Premium Calculator: Ministry of Health launches online tool to calculate premiums for disability insurance scheme to be launched in 2020; Government to run ElderShield scheme from 2021

Online calculator to work out premiums for CareShield Life
It tells Singapore residents how much they have to pay before and after subsidies, incentives
By Felicia Choo, The Straits Times, 28 Dec 2018

A new online calculator was launched yesterday to help people work out how much they will have to pay when disability insurance scheme CareShield Life is launched in 2020.

The Ministry of Health (MOH) said the gadget will provide Singapore residents with information about their estimated premiums before and after applicable subsidies and incentives.

Users will need to answer questions about their date of birth, gender, current ElderShield coverage as well as their income, housing type and citizenship status.

CareShield Life will replace ElderShield for younger residents, and it will be compulsory for people aged 30 to 40 to pay premiums from 2020.

Future cohorts will join CareShield Life at the age of 30, while those born in 1979 or earlier can choose to join CareShield Life in 2021 if they are not severely disabled.

Singaporeans who are currently insured on ElderShield - which is optional and provides payouts for a limited amount of time - can choose to upgrade to CareShield Life.

The premiums they have paid for ElderShield will be taken into account when calculating their CareShield Life premiums.

The calculator can be used by Singaporeans and permanent residents born between 1946 and 1990.

Singapore residents born in 1991 or later will be provided with their premium figures when they are enrolled in the CareShield Life scheme at age 30.

Those born before 1946 can call the Healthcare Hotline on 1800-222-3399 for more details about their estimated premiums, subsidies and incentives.

This group will have to pay higher annual CareShield Life premiums as they have fewer years over which to spread the payments, MOH said.

Meanwhile, those on other ElderShield policy arrangements will be able to find out more about their estimated premiums closer to 2021, when they are able to join the scheme.

This group includes people who opted out of ElderShield at age 40 but subsequently rejoined the scheme, those born between 1956 and 1967 who opted for a single-premium payment term for ElderShield, and those who have a paid-up policy.

CareShield Life premiums can be paid using Medisave, and subsidies and incentives will be provided.

Lower-to middle-income Singapore residents will receive means-tested subsidies. Up to two-thirds of Singapore resident households will be eligible for CareShield Life subsidies of up to 30 per cent.

Singaporeans in future cohorts (born in 1980 or later) will receive transitional subsidies of up to $250, spread over the first five years from 2020 to 2024.

Singaporeans in existing cohorts (born in 1979 or earlier) will receive participation incentives of up to $2,500, spread over the first 10 years of their policy, if they join CareShield Life in the first two years from 2021.

Singaporeans who are unable to pay for their premiums after subsidies can apply for additional premium support from the Government.

MOH said: "No Singaporean who joins CareShield Life will lose coverage due to an inability to pay their premiums."

* Government to run ElderShield scheme from 2021, taking over from three private insurers
It will take over from three private insurers, enabling smoother switch to CareShield Life
By Rei Kurohi, The Straits Times, 8 Jan 2019

The Government will run ElderShield from 2021 after reaching an agreement with Aviva, Great Eastern and NTUC Income, the private insurers currently administering the insurance scheme for people with severe disabilities.

In a statement yesterday, the Ministry of Health (MOH) said the Government will operate the scheme on a not-for-profit basis.

"In the event that the actual claims experience turns out better than expected, there will continue to be premium rebates for ElderShield policyholders."

With the change, MOH said ElderShield policyholders will be able to make the switch to CareShield Life more smoothly. The private insurers are currently serving 1.3 million policyholders.

CareShield Life, a new compulsory government-run scheme, will be implemented from 2020 for everyone between the ages of 30 and 40. It is intended to replace the optional ElderShield scheme.

Existing cohorts born in 1979 or earlier with ElderShield have the option of switching to CareShield Life from 2021 as well, when the Government takes over running of the ElderShield scheme.

The ElderShield Review Committee, which had in January last year recommended the Government run the ElderShield scheme, welcomed the announcement.

The committee's chairman, Mr Chaly Mah, encouraged the three private insurers to work with the Government to ensure a smooth transfer.

"We had earlier noted in our report that there is value for all ElderShield and CareShield Life policyholders to be serviced by the same administrator to ensure consistency in policy administration," he said.

With the Government running the scheme, Mr Mah said that the improvements in claim processes that the committee recommended for CareShield Life can now also be implemented for ElderShield as well.

This includes a new assessment framework that takes cognitive impairments into account.

The improvements will benefit even those who choose not to switch to CareShield Life. They will continue to be covered under their current ElderShield policies.

The private insurers will continue to issue new ElderShield policies and serve existing policyholders until 2021.

More information will be made available to policyholders closer to the date of the transfer, MOH added.

No comments:

Post a Comment