CareShield Life payouts to increase to meet Singapore's long-term care needs

Enhanced scheme to start in 2026; $570m in subsidies to help offset rise in premiums

- Joyce Teo

From 2026, CareShield Life will offer higher monthly cash payouts to help Singapore residents with severe disabilities cushion the fast-rising cost of long-term care.

The payout growth rate will rise from the current 2 per cent a year to 4 per cent a year from 2026 to 2030. Consequently, those who make a claim in 2030, for instance, will get $806 a month instead of $731.

Premiums for the national long-term care insurance scheme will need to rise, but the Government said it will provide an additional $570 million in premium support over the next five years to help policyholders offset the increases.

These were among the key changes recommended by an independent CareShield Life Council led by Ms Jeanette Wong, former group executive of DBS Bank. In conducting the review, the council consulted nearly 300 individuals, including caregivers, healthcare professionals, union leaders and community partners.

"These enhancements to CareShield Life complement the broader suite of long-term care support measures announced at Budget 2025," said a Ministry of Health (MOH) spokesperson at a media briefing on the review.

"Together, these enhancements ensure that long-term care remains affordable and in a sustainable manner for years to come."

It is the first review of the scheme since it was launched in 2020 as a mandatory plan offering lifelong coverage for Singapore residents born in 1980 or after, regardless of pre-existing disabilities or health conditions. It is optional for those born in 1979 or earlier.

In an Aug 27 Facebook post, Senior Minister of State for Health Koh Poh Koon said: "All premiums will remain fully payable by MediSave, and no one will lose CareShield Life coverage due to an inability to pay their premiums."

The review comes as an ageing population pushes up demand for long-term care, leading to increased costs. This is exacerbated by manpower and technology costs.