There was a saddening article on The Sunday Times, March 8 2009. The article was about the scarcity of beds in local nursing homes. The reason is that people are flocking to subsidized homes, that it is estimated that one has to wait for 4 months to get a bed there. Ironically, there are some other available beds in other homes, but most families cannot afford them as they aren’t subsidized.
Alternatives that some families take are to check their ageing parents into nursing homes in Malaysia. While it is cheaper, the price really isn’t that encouraging too.
While it has always been the maxim to provide for our elderly parents, sometimes it’s clear to me that the cost of living makes it somewhat near impossible.
Let’s study three possible scenarios arising from the result of an ageing parent becoming disabled. The following are the simplified calculated costs (all costs of nursing homes are derived from the article mentioned):
Scenario 1 – Disabled parent checks into local nursing home
Nursing Home Cost: $1,000 to $4,000 monthly
Scenario 2 – Disabled parent checks into Malaysian nursing home
Nursing Home Cost: $450 to $1,000 monthly
Scenario 3 – One adult child stops work to look after disabled parent
Income loss of adult child: $1,200 to $3,000 monthlyCost required for adult child’s lifestyle is still required
While it is easy to conclude that Scenario 2’s cost is the lowest, not all families can accept putting their disabled and ageing parent in another country. Scenario 3 is the most ideal in the aspect of family ties, but this will literally mean a loss of income due to an adult child stopping work to look after the parent. We also must not forget that this adult child too has lifestyle costs like his/her food, bills, clothing, etc.
Most often, families are likely to choose Scenario 1, and pool resources from family members to pay for the nursing homes cost. And if they have no choice but to choose subsidized nursing homes, they may now have to wait 4 months to get a bed for their parent.
The Ministry of Health’s Eldershield plan created for CPF members is a useful idea. However, it falls short in relevance to the spectrum of the problem. By default, Eldershield insured members are entitled $400 monthly for 6 years in the event of severe disability under their terms and conditions*. This would be a far cry from the nursing home costs in Singapore. Paying out for 6 years only, also isn’t comforting enough. Another whammy is that such coverage ends when the insured reaches age 65.
However, private supplementary plans have been created to make the Eldershield coverage relevant. Using the CPF Medisave as insurance premiums, such plans can increase the monthly payout up to $2,000. The payout period can also be extended to 12 years to a lifetime.
In conclusion, the most cost effective arrangement to cater to this long term care problem is the Eldershield plus is supplementary plan. Caregivers can also pool Medisave resources to supplement the premiums, instead of needing to pool to supplement the nursing home bills. Either ways, the disabled and ageing parent remains closer to home, and yet having his/her medical needs taken care of.
* To qualify for payout for Eldershield, the insured must not be able to perform at least 3 of the following Activities of Daily Living: Washing, Dressing, Feeding, Toileting, Mobility, Transferring.
Showing posts with label Old Age. Show all posts
Showing posts with label Old Age. Show all posts
Tuesday, March 31, 2009
Monday, November 17, 2008
Taking Care of Dad, Mum, Grandpa and Grandma
I got a scare.
My buddy at work shared with me that when her grandmother was alive, she became ill with dementia. The children still needed to work, and the final decision is to put her in a nursing home. The bill was $3,000 monthly.
My maternal grandmother had a fall early this year, and her children disallowed her to live alone anymore (much to her near violent objection, however, she finally lost the arguement, and now living with one of my aunts). Prior to the current arrangement, the possibility of a nursing home was considered. The quote given by the nursing homes was $3,000 monthly.
My grandfather has an injury in his nerve, and can no longer walk for many years. He has a nasty temper, so if he were to go to a nursing home, I think there will be lots of casualties in there. Thus, he stays at home with my grandmother, and a maid. The maid is employed specially to tend to my grandfather. With all expenses in, the domestic service should amount to $700 or more per month.
What do the above real-life scenarios tell me? Cost. Big cost.
My grandfather's scenario yielded the least cost because apart from the injury, he is actually pretty healthy. He and I debate over the current markets and political situations, and because he is just in front of the TV the whole day, he is even more up to date than I am (maybe he should start a blog too)!
My other grandmother's fall gave only a temporary (but pretty serious) injury. She has now since recovered and back with a vengeance.
But my buddy's grandmother's scenario is a very real example of health gone really really wrong. In the event that a family member becomes disabled -- be it physically or mentally -- to the point that close care is necessary, that's when the crunch comes in.
Did you read earlier that the monthly bill was $3,000 at the nursing home?
The government has a national severe disability insurance scheme for CPF members that provides monthly income to the family of the caregivers. Based on the above 3 scenarios, my buddy's grandmother and my grandfather would already qualify for the benefits, except that they do not have this plan in force when their disability happened.
The government's version -- called Eldershield -- at best, provides from $300 to $400 monthly only, and pays up to 6 years only. Coverage ends at age 65. That may have helped cover about half of my grandfather's maid's expenses. But for a much severe case like my buddy's grandma, the amount is only a consolation.
Then there are the supplementary versions that can extend the coverage to $2,500 a month, and with a lifetime payout every month should the disability qualify. Boy, won't it help the family!
I told my Dad and Mum that if they don't have this coverage, and if there is a need to hire a nurse to tend to them, my sis and I will be financially killed. Sounds so blunt, but that's a true fact.
Premiums for these plans, by the way, can be paid using Medisave.
I won't put details here and for corporate compliance, I cannot share information of the products on this blog. At best, I can only forward you to the relevant companies' websites.
But if you are keen to find out how exactly it facilitates your family, drop me an email.
My buddy at work shared with me that when her grandmother was alive, she became ill with dementia. The children still needed to work, and the final decision is to put her in a nursing home. The bill was $3,000 monthly.
My maternal grandmother had a fall early this year, and her children disallowed her to live alone anymore (much to her near violent objection, however, she finally lost the arguement, and now living with one of my aunts). Prior to the current arrangement, the possibility of a nursing home was considered. The quote given by the nursing homes was $3,000 monthly.
My grandfather has an injury in his nerve, and can no longer walk for many years. He has a nasty temper, so if he were to go to a nursing home, I think there will be lots of casualties in there. Thus, he stays at home with my grandmother, and a maid. The maid is employed specially to tend to my grandfather. With all expenses in, the domestic service should amount to $700 or more per month.
What do the above real-life scenarios tell me? Cost. Big cost.
My grandfather's scenario yielded the least cost because apart from the injury, he is actually pretty healthy. He and I debate over the current markets and political situations, and because he is just in front of the TV the whole day, he is even more up to date than I am (maybe he should start a blog too)!
My other grandmother's fall gave only a temporary (but pretty serious) injury. She has now since recovered and back with a vengeance.
But my buddy's grandmother's scenario is a very real example of health gone really really wrong. In the event that a family member becomes disabled -- be it physically or mentally -- to the point that close care is necessary, that's when the crunch comes in.
Did you read earlier that the monthly bill was $3,000 at the nursing home?
The government has a national severe disability insurance scheme for CPF members that provides monthly income to the family of the caregivers. Based on the above 3 scenarios, my buddy's grandmother and my grandfather would already qualify for the benefits, except that they do not have this plan in force when their disability happened.
The government's version -- called Eldershield -- at best, provides from $300 to $400 monthly only, and pays up to 6 years only. Coverage ends at age 65. That may have helped cover about half of my grandfather's maid's expenses. But for a much severe case like my buddy's grandma, the amount is only a consolation.
Then there are the supplementary versions that can extend the coverage to $2,500 a month, and with a lifetime payout every month should the disability qualify. Boy, won't it help the family!
I told my Dad and Mum that if they don't have this coverage, and if there is a need to hire a nurse to tend to them, my sis and I will be financially killed. Sounds so blunt, but that's a true fact.
Premiums for these plans, by the way, can be paid using Medisave.
I won't put details here and for corporate compliance, I cannot share information of the products on this blog. At best, I can only forward you to the relevant companies' websites.
- Aviva - http://www.aviva-singapore.com.sg/ElderShield
- Great Eastern Life - http://www.lifeisgreat.com.sg/ElderShield
- NTUC Income - http://www.income.com.sg/insurance/eldershield/
But if you are keen to find out how exactly it facilitates your family, drop me an email.
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