MEDISHIELD AND ELDERSHIELD SCHEMES

MEDISHIELD AND ELDERSHIELD SCHEMES

24.

Mr Gan Kim Yong asked the Minister for Health whether in reviewing the MediShield scheme, he will also consider reviewing the ElderShield scheme so as to enhance its effectiveness.

Mr Khaw Boon Wan: The ElderShield scheme was introduced onlytwo years ago. It provides older Singaporeans with basic financial protection against expenses required in the event of severe disabilities.

Unlike MediShield, the ElderShield insurers, of which there are two, compete to provide an identical insurance product, with premiums and payouts which are identical and specified by the Government. The two insurers are appointed after an open competitive bidding process. Eligible CPF members are then randomly allocated to the insurers for coverage, unless they opt out of ElderShield. As a result, the profile of policyholders, in terms of age, gender or health risk, for each insurer is largely similar.

The contract for the ElderShield insurers runs forfive years. Towards the end of the contract, in 2007, the Government will review the performance of the scheme as well as the insurers. That will be an appropriate time to assess the effectiveness of ElderShield and to see if we should make any refinement to it. At the moment, there are not enough claims data to allow for a meaningful evaluation of the scheme.