Government to Administer ElderShield from 2021

1. The Ministry of Health (MOH) has reached an agreement with the ElderShield insurers for the Government to take over the administration of the ElderShield scheme in 2021. This will allow ElderShield policyholders to upgrade to CareShield Life more smoothly, and benefit from improvements to the claims assessment process that will be implemented for CareShield Life. 

Benefits to ElderShield Policyholders

2. There are currently 1.3 million ElderShield policyholders served by three private insurers^[1]. Government administration of the ElderShield scheme^[2] will commence in 2021, together with the launch of CareShield Life for existing cohorts^[3]. 

3. With Government administration, ElderShield policyholders who choose to upgrade to CareShield Life for better coverage will benefit from a smoother upgrading process.

4. ElderShield policyholders not upgrading to CareShield Life will remain covered by their existing ElderShield policies. They will benefit from improvements to the claims assessment process that will be implemented for CareShield Life, such as an enhanced assessment framework that takes into account cognitive impairments. 

5. The Government will administer the ElderShield scheme on a not-for-profit basis. In the event that the actual claims experience turns out better than expected, there will continue to be premium rebates for ElderShield policyholders. 

6. Holders of ElderShield Supplements will not be affected. They will continue to be served by their existing ElderShield Supplement insurers.  

Terms of Transfer

7. ElderShield insurers will transfer to the Government the liabilities and corresponding assets backing these liabilities for all policies under the ElderShield scheme. The valuation comes up to approximately $2.9b. Actuarial consultants and audit and legal firms, appointed by the Government, have verified that the valuation and transfer terms are fair and in accordance to standard industry practice. 

Transition Period

8. No action is required on the part of existing ElderShield policyholders at this point.  

9. From now until the transfer is completed in 2021, existing ElderShield insurers will continue to issue new ElderShield policies and serve ElderShield policies. MOH will work with the insurers to ensure a smooth transition, and more information will be provided to each ElderShield policyholder closer to the date of transfer. 

MINISTRY OF HEALTH

7 JANUARY 2019

[1] The insurers are Aviva, Income, and Great Eastern Life Assurance.

[2] This refers to both ElderShield 300 and ElderShield 400.

[3] This refers to those born in 1979 or earlier.