Proposed ElderShield Reform

Mr Chen Show Mao asked the Minister for Health if he will provide an update on the proposed ElderShield reform that is reported in 2011, including plans to increase payouts to $800-$1,000 per month.

MOH is currently undertaking a holistic review to enhance affordability in the intermediate and long-term care (ILTC) sector through enhancing both Government subsidy and insurance in the form of ElderShield.

Today, ElderShield provides cash payouts of $400 a month for up to six years to help defray the cost of care for a severely disabled senior. MOH is reviewing the key design parameters of ElderShield to provide greater protection and support for Singaporeans. We are mindful that enhancements to ElderShield benefits will affect the premiums for policyholders and we have to carefully study the benefits of these enhancements and what they will mean for premium levels.

In the meantime, to improve the affordability of ILTC services for Singaporeans, MOH has enhanced the ILTC subsidy framework to provide more help from the Government. Subsidies were increased in July 2012 and the qualifying income raised so that more middle income households can benefit from the subsidies. We also started absorbing Goods and Service Tax (GST) for all subsidised patients receiving care at GST-registered ILTC institutions. In addition, we introduced the Foreign Domestic Worker (FDW) Grant to support middle income households that need a domestic helper to care for their frail or disabled elderly family member, and raised the monthly cash payouts for disabled elderly under the Interim Disability Assistance Programme for the Elderly (IDAPE). These efforts work together to reduce the overall out-of-pocket cost of ILTC services for many Singaporeans.

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