SINGAPORE: More details about how the government will enhance support for the long-term care of seniors were announced by Health Minister Ong Ye Kung on Friday (Mar 7).

These plans, first introduced by Prime Minister and Finance Minister Lawrence Wong in his Budget speech on Feb 18, aim to address the needs of an ageing population.

Mr Ong said that with an ageing population, Singapore's annual national long-term care operating expenditure has almost doubled over the last five years, from S$1.7 billion (US$1.28 billion) to about S$3 billion, and continues to rise.

Currently, the government subsidises long-term care for Singapore citizens and permanent residents for seniors from households with a per capita monthly income of S$3,600 and below. Households without incomes are subsidised if the annual value of their home is S$21,000 or less.

The maximum subsidy for Singapore citizens is now 75 per cent, while that for PRs is 50 per cent.

From July 2026, the maximum subsidy for Singaporeans needing residential long-term care will be raised to 80 per cent, said the Ministry of Health (MOH). This will apply to Singaporeans born in 1969 or earlier, whose per capita household income is S$1,500 and below.

Overall, subsidies across all eligible income tiers will be raised by up to 15 percentage points. More households will qualify as well, as the per capita household income ceiling for eligibility will increase from S$3,600 to S$4,800.

Citizens born in 1969 or earlier will receive an additional 5 percentage points in subsidies for residential care and an additional 15 percentage points for home and community-based care. This is because they are not as well covered by national insurance schemes like CareShield Life, MOH said. 

Home and community long-term care include active rehabilitation, centre-based nursing, dementia day care, home medical, nursing and personal care. It also covers maintenance day care and exercise, home therapy, Meals on Wheels, medical escorts, transport and psychiatric day rehabilitation services.

For seniors born in 1969 or earlier, the maximum subsidy for home and community long-term will be 95 per cent for households with a per capita income of S$1,500 and below. This also applies to households with no income and whose home annual value is S$21,000 and below.

As the enhanced subsidies will take effect from July next year, in the interim, MOH-subsidised long-term care services will give one-off fee rebates between July 2025 and June 2026.

HOME CARE GRANTS

The Home Caregiving Grant, which helps offset informal caregiving costs for lower-income households, will be raised with grants ranging from S$200 to S$600 a month.

The Seniors’ Mobility and Enabling Fund, which provides subsidies for selected home healthcare items and assistive devices, will be extended to cover permanent residents. The list of subsidised items will also be expanded, with means-tested support ranging from 10 per cent to 90 per cent of costs.

The income ceilings for both grants will also be raised from S$3,600 to S$4,800.

"With these enhancements, over 80 per cent of seniors, especially those being cared for at home, will pay less for their long-term care services," said Mr Ong.

He estimates the long-term care enhancements will benefit more than 80,000 seniors, who can expect to receive support of up to S$2.1 billion, from 2025 to 2030.

To better support families with caregiving needs amid shrinking family sizes, MOH will extend a pilot scheme that enables caregivers to assist multiple seniors with daily activities and social programmes in shared premises.

This initiative, introduced more than a year ago, provides participating companies with work pass flexibilities, including additional foreign worker quota and the option to hire from more countries.

Second Minister for Health Masagos Zulkifli said that since the launch of the Shared Stay-in Senior Care Services Sandbox, more than 200 seniors have enrolled in the service.

"The service has been well received by families, who play a key role in the caregiving journey by partnering providers in making caregiving decisions for their loved ones," he said.

MOH will extend the work pass flexibilities to new companies intending to provide such services, and interested companies can apply from the second half of 2025. 

Mr Masagos said that the service will not be licensed, as it provides caregiving support similar to how family members would care for their loved ones at home.

CARESHIELD LIFE REVIEW

The CareShield Life scheme will undergo its first review, with recommendations set to be released in the second half of this year.

Launched in 2020, CareShield Life is a national long-term care insurance scheme designed to provide financial assistance for individuals with severe disabilities.

"The scheme has not been reviewed since it was first launched in 2020. Long-term care costs have since risen, and we need to ensure that the payouts continue to provide meaningful support," said Mr Masagos.

MOH said it has asked the CareShield Life Council to review the scheme to ensure it remains effective.

“In the longer term, CareShield Life will play a larger role in ensuring long-term care affordability as more seniors will have insurance coverage,” the ministry said.

The scheme is mandatory for Singapore citizens and permanent residents born in 1980 and later, while older cohorts have the option to enrol.

Policyholders with severe disabilities – defined as the inability to perform at least three out of six daily living activities, such as washing, feeding or dressing – receive monthly cash payouts.