From 2026, the CareShield Life scheme will be revamped with increased premiums and higher monthly cash payouts aimed at supporting Singapore residents with severe disabilities. Following a review by an independent council led by Jeanette Wong, the Ministry of Health (MOH) has announced significant changes set to unfold over the next five years.
Higher Payouts to Combat Rising Care Costs
Under the new structure, the growth rate of payouts will increase from an annual 2% to 4% from 2026 to 2030. This means policyholders making claims in 2030 can expect monthly disbursements of S$806, an increase from the previous S$731. These enhancements are intended to address the soaring costs of long-term care in Singapore.
Premium Adjustments and Government Support
- Average annual premium increases will be moderated to approximately S$38, with a cap at S$75.
- The government will contribute S$570 million in additional support over five years to ease the burden on policyholders.
- Premiums can be fully paid using MediSave.
Senior Minister of State for Health, Koh Poh Koon, stated that the adjustments aim to keep CareShield Life both affordable and manageable for Singaporeans.
Eligibility Criteria Reinstated
From 2026 onwards, CareShield Life will revert to stricter underwriting criteria, meaning only those without pre-existing disabilities can enrol in the scheme. This change is aimed at ensuring the sustainability of the scheme amidst increasing demands from an ageing population.
Growing Demand for Long-Term Care
With long-term care costs rising significantly—nearly doubling from S$1.7 billion to approximately S$3 billion in the past five years—these updates come as part of a broader strategy to address the needs of an ageing society. As of 2024, CareShield Life has around 1.93 million Singapore citizens covered.
Future Outlook
The next review of CareShield Life is anticipated after the 2030 phase, ensuring that the policy continues to meet the evolving needs of the population. “These enhancements complement the broader suite of long-term care support measures,” said a MOH spokesperson, reflecting the government’s commitment to affordable care solutions.