Who is paying for juniors’ MediShield Life premiums? The straight and simple answer is the Government. Yup, you heard right. Through the MediSave Grant for Newborns, the Government is helping to pay juniors’ MediShield Life premiums.
Every Singapore citizen newborn receives a MediSave Grant of $4000. Upon registration of a child’s birth, the government opens a CPF MediSave account for the child. The grant is credited automatically into this account.
MediSave Grant for Newborns (MGN)
Introduced on 26 Aug 2012, MGN started at $3000. Subsequently, the government enhanced it to $4000 for citizen babies born from 1 January 2015. Children who are non-citizen at birth but obtained Singapore citizenship before 2 years old receive pro-rated amounts. This pro-rated amount is based on the age when the child became a citizen.
MediSave account earns 5% interest per annum for juniors
The floor rate for MediSave Account (MA) is 4%. CPF pays an extra 1% interest for a combined balance (OA + SA + MA) of up to $60,000. Hence, for children, their MA earns an extra 1% interest making it 5% altogether.
This is higher than the annual premium before subsidies. With premium subsidies, the actual amount paid by each child is less than $145 a year. For the lower income families, the premium is $101 after subsidy.
Free vaccinations and childhood developmental screening
Who is eligible for the MediSave grant?
All babies who are Singapore citizens are eligible for the MediSave Grant for Newborns (MGN). They include adopted children as well as children born to divorced or unwed mother. Children who are born overseas qualify for the grant upon registration of their birth with ICA directly or through relevant Overseas Missions.
A brilliant and thoughtful idea
See the picture now? MGN is a thoughtful and brilliant idea.
It helps ensure every newborn start out in life with enough MediSave to pay for their MediShield Life premiums from birth till 21. It provides healthcare insurance for children without putting any financial strain on their parents. Parents have peace of mind knowing that their children’s healthcare needs are being supported.
[irp posts=”2247″ name=”MediShield Life premiums to go up with enhanced benefits and better coverage; $2.2 billion committed in premium subsidies”]