Gov’t announces compulsory CareShield Life scheme, S’poreans think that it is unwanted and “no backing out”

Earlier today (28 August), the Ministry of Health (MOH) had announced the launching of CareShield Life and MediSave Care on 1 October.

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 who were born in 1980 or later. As for citizens who were born 1979, participation in this scheme is optional. However, for the people who were born between 1970 and 1979, insured under ElderShield 400 and aren’t severely disabled, they will be automatically enrolled in CareShield Life from the end of 2021.

The Ministry explained that having “sever disabilities” means not being able to perform at least three of the six listed Activities of Daily Living, such as feeding, dressing, toileting, washing, walking or moving around, as well as transferring from bed to chair and vice versa.

Under this scheme, Singaporeans will start paying annual premiums using their MediSave accounts upon reaching their 30th birthday and they will stop paying at the age of 67, adding up to a total of 38 premiums.

Therefore on 1 October 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 make up two-thirds of households will get up to 30 per cent subsidy for their premiums.

However, if they still could not afford, 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 will 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.

Singaporean netizens left comments under the Straits Times news release on this announcement, expressing their dissatisfaction on the fact that this insurance scheme is compulsory.