What are the measures that the Ministry of Health has put in place to prevent CareShield Life premiums from escalating drastically?
The CareShield Life Council will regularly review the experience of the CareShield Life scheme and advise the Government on CareShield Life premium and payout adjustments in accordance with an actuarially sound adjustment framework. Regular reviews would be conducted on key assumptions such as morbidity experience, trends in mortality, rate of claims continuance etc.
If the actual claims paid are higher than expected, the Council may recommend adjustments (e.g. increase the rate of premium increases or moderate the pace of payout increases) to ensure the scheme remains sustainable.
The Government will consider affordability of premiums when reviewing the Council’s advice on premium adjustments.
This information provided here is sourced from the MOH website.
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