Responding to MPs’ concerns about affordability, Dr Koh gave assurances that no one will lose CareShield Life coverage due to an inability to afford premiums.
He added that lower and middle-income policyholders will see even smaller premium increases, as they will enjoy further subsidies.
On questions on premium affordability for women, Dr Koh said gender is a “relevant factor” for CareShield Life as the key parameters that affect long-term care insurance claims, such as lifespan, duration and likelihood of disability, vary between men and women.
He added that women tend to live longer than men and are likely to develop severe disability, and are therefore more likely to stay in disability for a longer period.
“It will mean that in the event of severe disability, a woman will typically receive CareShield Life payouts for a longer duration.”
MPs also raised concerns about the underwriting criteria change and the impact on those excluded, such as older individuals from the optional cohort with mild disability.
MP Jamus Lim (WP-Sengkang) said while he understood the economic rationale of excluding those severely disabled, there remains a “moral responsibility” to take care of them.
In his response, Dr Koh noted that the optional cohort had been given a four-year concession period, with about 900,000 individuals, or about half of the optional cohort, enrolling in CareShield Life as of June.
Including those who chose to remain on ElderShield, about seven in 10 older Singaporeans are enrolled in national long-term care insurance schemes, he said.
ElderShield is an earlier version of the national insurance scheme against severe disability, and has since been replaced by CareShield Life.
Dr Koh said different layers of financial support, such as subsidies and grants, which have been “significantly enhanced recently”, are available for those who have chosen not to enrol in CareShield Life.
