Combine MediShield Life and CareShield Life

I suggest that long term care, which is covered under CareShield Life could be integrated into MediSheild Life, so that we only deal with one scheme, rather than two separate schemes.

The argument in favor of a separate scheme to cover long term care is that the cost is highest at an advanced age, and there is a need for pre-funding of the cost.

The same argument could be made for the hospital and outpatient care that is covered under Medishield. If you look at the premium rate for Medishield, it does increase sharply at the advanced age.

It should be possible to provide the benefit for long term care under Medishield Life. There is no need for a separate scheme.

There is already an element of pre-funding under Medishield Life. The premium paid at the younger ages are set to be higher than the actual cost. This would leave a surplus to reduce the premium rate at the older ages.

This mechanism could be used to cover the long term care as well.

There is already pre-funding under Eldershield. The value of the pre-funding scheme can be refunded into the policyholder's Medisave account.

Tan Kin Lian