On 07 Jan 2021, MOH has announced that the Government will be taking over administration of the ElderShield Scheme from private insurers. MOH is expected to announce the exact date of takeover, in late 2021.
After the transfer, Central Provident Fund Board (CPFB) and the Agency for Integrated Care (AIC) will be handling the policy servicing and claims.
All ElderShield insureds, regardless of whether they upgrade to CareShield Life, will also benefit from the improvements to the claims assessment process, which takes into account cognitive impairments.
The Government will run the ElderShield scheme on a non-profit basis. If the actual claims experience turns out better than anticipated, there will be continuation of premium rebates for all ElderShield insureds.
The Government will administer CareShield Life and ElderShield, which provide basic protection against long-term care costs; while ElderShield / CareShield Life Supplements which provide additional protection will be administered by the 3 private insurers (Aviva, NTUC, Great Eastern).
How will it affect you?
The Government will take over administration of the basic ElderShield scheme from insurers in end-2021. Insurers will not be administering ElderShield from then on.
However, ElderShield Supplements will continue to be administered by the existing ElderShield insurers and will not be transferred to the Government.
To facilitate the transfer of the ElderShield scheme from Private Insurers, there will be at least one month of transition period before the transfer date. Requests such as claim applications or change of payors during the transition period will only be processed after the transfer date.
If you have any existing claim payouts, the transfer of administration of the ElderShield scheme from insurers to the Government will not affect your payouts, and no action is required from you.
If you would like to learn more about ElderShield / CareShield Life supplements, contact our FLA Organization Financial Consultants today!
