Panel wants to expand ElderShield coverage

It proposes making scheme compulsory for future cohorts and starting premiums earlier

The committee recommended that people start paying premiums at the age of 30 rather than 40, and suggested that the Government administer the scheme. PHOTO: ST FILE

ElderShield coverage should be made compulsory for all - including those with pre-existing disabilities - according to the committee reviewing the insurance scheme for people with severe disabilities.

It recommended that people start paying premiums at the age of 30 rather than 40, and suggested that the Government, rather than private insurance providers, administer the scheme. It also called for the claims process to be simplified.

The committee gave its interim update yesterday, with the full set of recommendations expected to follow by the middle of this year.

If accepted, its proposals will apply only to Singaporeans aged 30 to 40 who are joining ElderShield for the first time. People who have previously opted out will not be made to go back on the scheme.

"We want ElderShield to be a social safety net, and we all have a collective responsibility to take care of those with disabilities," said Mr Chaly Mah, who chairs the ElderShield Review Committee.

In a Facebook post yesterday, Senior Minister of State for Health Chee Hong Tat said an enhanced ElderShield scheme would enable Singaporeans to "pool our risks and resources in preparation for old age".

"It is an important pillar of Singapore's social safety net as our society ages," he said. "The Government will look at providing premium subsidies to keep the premiums affordable for lower-and middle-income Singaporeans."

Currently, all Singaporeans join the scheme automatically when they turn 40, and are covered by one of three private insurers - Aviva, Great Eastern or NTUC Income - but they are able to opt out.

Although the opt-out rate in recent years has been about 5 per cent, more than a third of people opted out when the scheme started in 2002.

Money is paid out when people cannot perform three of the six "activities of daily living" on their own. These are washing, dressing, using the toilet, feeding oneself, moving around indoors and getting from the bed to a chair or vice versa.

Mr Mah, who is also the chairman of the Singapore International Chamber of Commerce and the Singapore Accountancy Commission, said: "It is clear to us that the average Singaporean does not understand the risk of severe disability... When you underestimate this risk, it is easy to take the decision to opt out."

Yet half of Singaporeans who are healthy at the age of 65 are at risk of developing a long-term disability over their lifetime, according to Health Ministry estimates.

The committee said it is looking at the size of payouts and the duration for which they are given out, which could be different from now. Premiums could also increase.

Premiums differ depending on a person's age when he signs up for the scheme. But if one chooses to drop out halfway, he might not be entitled to any payouts.

People felt having the Government as a single administrator would make the claims process easier to navigate, said Ms Chan Chia Lin, who chaired the government administration sub-committee. "The feedback was that being a national scheme, it should be administered in a non-profit manner," added Ms Chan, who is the director of private investment firm Holywell.

The committee also wants to make the process of making claims easier, after receiving feedback that it can be challenging.

"All this heightens the stress of the patient and the caregiver, and we want to tackle this," said Dr Loh Yik Hin, chief executive of St Andrew's Community Hospital who chaired the sub-committee for claims assessment.

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A version of this article appeared in the print edition of The Straits Times on January 31, 2018, with the headline Panel wants to expand ElderShield coverage. Subscribe