According to “experts” interviewed by state media Straits Times, Singaporeans are expected to pay more for Eldershield after it is being made compulsory. Business lobbyist Deloitte said that it is “inevitable” because of the “silver tsunami”:
“In fact, higher premiums are inevitable. The country’s silver tsunami means premiums will go up due to the risk pool diminishing in size with lower birth rates, causing the risk borne by insurers to go up.”
However disability insurance Eldershield has been collecting more premiums than it’s payout.
Last year, Health Minister Gan Kim Yong reported that the government collected S$2.6 billion against a payout of S$100 million between 2002 and 2015. It is understood the insurance fund has been invested in the stock market. The Minister refused to disclose how much are there in the Eldershield insurance funds, and there is no balance sheet to track the fund investments.
In the coming budget, the review committee appointed by the Ministry of Health will want the Eldershield be made compulsory and start at an earlier age at 30 instead of 40. There is no explanation why the insurance must be made compulsory or why it should start 10 years earlier.
Another business lobbyist consulted by Straits Times, Pricewatercooperhouse (PWC), defended the government’s intention to lower payment age:
“Bringing forward the enrolment age will help slow down the increase in premiums associated with the rising cost of healthcare.”
Elderly reaching 60 years old and above will be paying up to S$3,000 a year for Eldershield, and the insurance scheme if made compulsory will net the government an estimated S$10 billion a year.