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SINGAPORE – A new mandatory national long-term care insurance goes into effect on Thursday (October 1) for all residents born in 1980 or later. Called CareShield Life, it provides payments for people with severe disabilities.
Straits Times Senior Health Correspondent Salma Khalik answers questions about this new scheme.
Q: I already have MediShield Life. Why do I need CareShield Life?
A: The two insurance schemes are completely different.
MediShield Life is for acute medical needs and covers large hospital bills and certain major outpatient treatments such as chemotherapy for cancer.
If the medical problem involves a serious disability, MediShield Life does not pay for treatment or continued outpatient care, beyond the hospital stay.
CareShield Life, on the other hand, deals with long-term disability. You will pay a fixed monthly amount of at least $ 600 for the duration of the disability, even if it is for the rest of the person’s life.
There are no restrictions on how the recipient uses the money.
Q: What type of serious disability qualifies for CareShield Life payment?
A: The payment is awarded to a person who cannot perform three of the six activities of daily living without assistance. The activities are washing, dressing, eating, going to the bathroom, walking or moving and moving from bed to chair and vice versa.
Q: How does someone request payments?
A: The person must be examined by a serious disability assessor who is accredited by the Ministry of Health. The evaluators include physicians, trained therapists, and nurses.
If the person qualifies for a payment, the request must be sent to the Integrated Care Agency.
The evaluation is free the first time, but there is a fee of $ 100 to $ 250 for a second evaluation. This could happen if the person does not qualify for payment, but then the condition deteriorates and a second request is made.
Once a person starts receiving payments, they no longer need to pay any premiums.
Q: Why is the payment “at least $ 600” per month? What decides the actual amount people receive?
A: The payment amount increases each year to keep up with inflation. In the first year, the payment is $ 600 per month. It will increase 2 percent annually for the first five years.
Thereafter, the increase will be decided by the CareShield Life Council.
Once a person begins to receive a payment, the amount is fixed based on the first payment. The payment for that person will not change even if the scheme increases the payments over the years.
Q: I’m not 30 yet, but I already have a serious disability. Can I join CareShield Life?
A: Yes, you can, but only when you turn 30. You will need to pay the first premium before making a claim. If your claim is successful, you will start receiving monthly payments and you will not have to pay any more premiums.
No Singaporean or permanent resident born in 1980 or after is excluded from this insurance plan, which offers universal coverage.
Q: How much premium do I have to pay?
A: Premiums, which can be paid with Medisave funds, are paid annually from age 30 to age 67, which means paying premiums a total of 38 times.
Even if the person stops paying the premium at age 67, they will continue to be covered for the rest of their life.
However, any payment you receive will be tied to the rate of payment in effect in the year that you pay your last premium.
In the first year, 30-year-olds start at $ 206 a year for men and $ 253 for women. Premiums are higher for those in their 40s, men pay $ 295 and women $ 366.
Premiums increase by 2 percent per year for the first five years. Subsequent increases will be decided by the CareShield Life Council.
Q: What if I can’t pay the CareShield Life premium?
A: People who do not have enough money in their Medisave account can use money from the Medisave account of their spouse or an approved family member.
There are also government subsidies. Low- to middle-income Singaporeans (up to a household per capita income of $ 2,800), who make up two-thirds of households, will receive subsidies of 20 to 30 percent on their premiums.
There is also a transition allowance for the first five years. It starts with $ 70 in the first year (2020-21), going down $ 10 a year to $ 30 in the fifth year (2024/25).
Singaporeans still unable to pay their premiums can apply for extra help from the Government.
Q: What if I was born before 1980? Can I also join CareShield Life?
A: Yes, you can join, but only starting next year. ElderShield policyholders can also convert to CareShield Life by paying an additional amount.
There will be union incentives to encourage more people to buy this insurance, the Health Ministry said. More details will be released before the plan is rolled out to all other residents.
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