Letter from Bey Mui Leng Director, Corporate Communications, Ministry of Health
The report "ElderShield under fire" (April 26) rightly raised concerns over how Singapore would finance the costs of looking after its rapidly-ageing population.
However, it wrongly placed the funding burden entirely on ElderShield, an insurance scheme that supports the elderly who are unable to perform basic daily activities like washing, dressing and feeding.
In Singapore, as elsewhere, long-term care for the aged is funded through a combination of personal savings, family support, community help and state funding for the most vulnerable groups. Insurance to pool risks is an integral part, but not the whole, of the equation.
In Budget 2012, the Government announced significant increases in subsidies for home- and centre-based services as well as nursing home services. The qualifying income criterion will be raised so that two-thirds of households will be able to get help.
ElderShield contributes towards helping families pay for the subsidised cost of long-term care. Although a fairly young scheme, it has gained acceptance over time since 2002, with opt-out rates for recent cohorts at under 10 per cent.
For those who could no longer join ElderShield when it was introduced, assistance is available under the Interim Disability Assistance Programme for the Elderly (IDAPE), whose qualifying income criterion was recently enhanced, to benefit more Singaporeans.
With ElderShield or IDAPE and the revised government subsidy, up to 90 per cent of the cost of intermediate and long-term care for lower-income families will be covered. Next year, the Ministry of Health will review ElderShield's key features, including the payout amount and premiums payable.
We welcome suggestions on how we could better support those who need more assistance to live their golden years with greater peace of mind.
Source: Ministry of Health Singapore
