Why is the use of Medisave for ACP restricted to 3 claims?
Most Singaporeans will need some form of healthcare as they age. Therefore, there are limits on Medisave withdrawals to prevent premature depletion of Medisave monies, since the bulk of healthcare costs are likely to take place towards the end of a person's life.
Background of scheme
How much is the Medisave grant?
The grant is $3,000 and it will be given in two equal tranches. The first $1,500 will be deposited after the registration of birth, and the remaining $1,500 will be given in the subsequent year if the child continues to be enrolled in MediShield or a Medisave-approved Integrated Shield Plan.
The use of the child’s Medisave grant for Integrated Shield premiums is subject to each insurer’s business decision. Parents may wish to check with their financial advisor or the insurer for more information.
However, we encourage parents who wish to purchase Integrated Shield plans for their children to consider if such coverage is suitable for their family’s needs and situation, and to consider paying for the premiums using their own Medisave accounts instead. As the Medisave grant for newborns is meant to support basic healthcare expenses, using the grant to fund more expensive higher-ward coverage will deplete the child’s Medisave account quickly even before the child starts working. This may cause the child’s coverage to lapse due to insufficient funds and affect the child’s future coverage for any pre-existing conditions that have since developed.
Are all newborns eligible for the Medisave grant?
A child who is not a Singapore citizen at birth will not be eligible to receive the first $1,500 of the grant. However, if the child is born on or after 26 Aug 2012 and subsequently becomes a Singapore citizen before he/she turns two years old, he/she will be eligible to receive the second $1,500 of the grant, provided that he/she is enrolled in a MediShield or a Medisave-approved Integrated Shield Plan.
Parents can refer to the notification letter that will be sent to them upon the deposit of the Medisave grant into their child’s Medisave account.
Parents can also check with the Medisave-accredited medical institutions where their child is seeking treatment on the amount of Medisave available.Please click here for the list of medical institutions participating in the Medisave scheme.
How will the Medisave grant be given out? When will we receive the Medisave grant for our child?
Eligible newborns will receive the first $1,500 after the registration of birth and the second $1,500 in the subsequent year, if he/she continues to be enrolled in MediShield or a Medisave-approved Integrated Shield Plan.
Those who are born on 26 Aug 2012 to Feb 2013 will receive the first $1,500 by Apr 2013 and the second $1,500 after their first birthday.
Those born in Mar 2013 and thereafter will receive the grant about 2 months after the date of birth.
No, the child’s Medisave grant is meant to cover the child’s healthcare expenses in the same way as other Medisave balances. Examples include MediShield premiums, hospitalisations, selected vaccinations and outpatient expenses for selected chronic diseases such as asthma.
Cash withdrawal of the grant is not allowed unless the child meets the existing CPF withdrawal conditions (for example, upon the child leaving Singapore and West Malaysia permanently).
CPF Board will close the account and the grant will be paid to the Public Trustee for distribution to the family according to the Intestacy laws.
For more information, please refer to 'Administration of CPF Monies of Deceased Persons by the Public Trustee'.
Parents have expressed their desire for MediShield to cover their children who may require hospitalisation upon, or soon after birth for medical complications or treatment of congenital anomalies.
To help to relieve the financial burden on parents and provide peace of mind, we will be extending MediShield to cover congenital and neonatal conditions. This will enable all Singapore Citizens born on or after 1 March 2013 to receive coverage from birth without having to be assessed for pre-existing conditions.
With the extension of coverage, all Singapore Citizens born on or after 1 March 2013 and whose birth are registered within 42 days from birth will be able to receive full coverage from birth without having to be assessed for pre-existing conditions, as long as they do not opt out. All existing policyholders who were insured before 1 March 2013 will also receive coverage for congenital conditions diagnosed on or after 1 March 2013.
All other new members who join MediShield on or after 1 March 2013, without coverage from birth, will be covered for congenital conditions if the conditions were diagnosed on or after the cover commencement date.
As an insurance scheme funded through riskpooled premiums paid by policyholders, all MediShield enhancements and changes have to take place on the same date. CPF Board has to give policyholders sufficient notice of the enhanced benefits and premium adjustments, before they are effected. Bearing this in mind, MOH and CPF Board have worked towards an implementation date of 1 March 2013 to allow time for individual notifications, as well as the system changes to support the processing of claims. Significant Government subsidies of up to 80% will continue to be available to all who require treatment for their congenital and neonatal conditions in public hospitals, even if insurance coverage is not available. Parents can also use their Medisave for their children’s healthcare bills. Needy families who face difficulties with their healthcare bills can continue to approach the Medical Social Workers at the public hospitals for assistance through other avenues, such as Medifund Junior. MOH has introduced Medifund Junior to provide more targeted financial assistance for healthcare bills incurred by sick children from needy families. This will include those who were unable to obtain insurance coverage due to pre-existing conditions, e.g., those with congenital conditions diagnosed before 1 March 2013.
Congenital and neonatal conditions will be covered as per other medical conditions under the prevailing MediShield claim limits subject to the deductible and co-insurance.
However, MediShield will exclude coverage for any active surgical interventions for the following rare congenital conditions which are severe and fatal by nature: Trisomy 13, Trisomy 18, Bilateral Renal Agenesis, Bart’s Hydrops, Alobar Holoprosencephaly and Anecephaly.
No action is required on the part of parents if either parent is a CPF member.
All Singapore Citizens born on or after 1 March 2013, and whose births are registered within 42 days from birth, will be automatically extended a cover under MediShield from birth without having to be assessed for pre-existing conditions, if parents do not opt their children out. For these newborns, hospitalisations for congenital and neonatal conditions will be covered under MediShield from their date of birth, subject to the prevailing claim limits.
Existing policyholders, such as insured children, will also automatically receive coverage for any congenital condition diagnosed on or after 1 March 2013. Parents will be notified of the extension of MediShield coverage for their newborns by CPF Board. Premiums for a child’s MediShield cover can be paid for using either parent’s Medisave account or the child’s Medisave account.
If your child’s birth is not registered within 42 days, he/she will not be extended a MediShield cover from his/her date of birth. However, he/she will still be automatically extended a cover which will start 1 calendar month after the MediShield invitational mailer has been sent to you/your spouse. The cover extended to your child will be subject to CPF Board’s assessment for any pre-existing conditions.
Parents are therefore encouraged to register their child’s birth early, within 14 days of birth. You may wish to refer to ICA’s website for more information on birth registration: http://www.ica.gov.sg/page.aspx?pageid=144
Currently, the private insurers providing the Medisave-approved Integrated Shield Plans do not provide coverage from birth.
You do not need to terminate your child’s MediShield cover before applying for an Integrated Shield Plan for him/her. As the Integrated Shield plan consists of an enhanced portion provided by the private insurer as well as a MediShield component provided by CPF Board, your child’s Integrated Shield Plan will be integrated seamlessly with his/her initial MediShield cover upon the commencement of the Integrated Shield Plan.
If your child’s MediShield cover commences from his/her date of birth, we encourage you not to opt your child out from MediShield as the MediShield cover extended to your child will not have exclusions imposed due to pre-existing conditions.