The government is planning to step up measures to increase the birth rate in the coming years. Since working style reforms will be promoted to support working couples to have children, companies should also be fully aware of this social trend. This article explains about the lump-sum childbirth allowance, whose amount was raised in April 2023.
[1] Childbirth allowance system
When we go to the hospital for treatment, the amount of payment will become 30 percent of the total medical expense by showing the health insurance card. Pregnant mothers, however, need to pay full amount of the expense for giving birth, unless they have specific medical problems, since giving birth is not considered the same as injuries or illnesses. To reduce their financial burden, a lump-sum childbirth allowance is provided when workers or their dependent family members give birth.
[2] Amounts of lump-sum childbirth allowance
The amount of lump-sum childbirth allowance is 420,000 yen as of March 2023. This includes 12,000 yen premium for the obstetric medical compensation system, which provides compensation when a child is born with cerebral palsy. In the case of childbirths at a hospital or clinic not enrolled in obstetric medical compensation system, the amount of allowance will be 408,000 yen.
Although childbirth allowance reduces the financial burden of workers having children to some extent, giving birth is becoming increasingly costly. In some cases, the expense exceeds the amount of lump-sum allowance. Considering the current situation, the government raised the amount of lump-sum childbirth allowance to 500,000 yen, including the premium for the obstetric medical compensation system, in April 2023..
The lump-sum childbirth allowance can be paid directly to the hospitals where workers or their family members gave birth, by the hospitals submitting the application to the relevant health insurance association (the direct payment system). In this way, workers do not have to pay the full amount once and claim the allowance later. In the case the expense exceeds the allowance, the worker only has to pay the difference to the hospital.
The lump-sum childbirth allowance application form for the Japan Health Insurance Association was changed in January 2023. Because of the direct payment system, this form may not be used often, but companies should be familiar with the new form to submit the application smoothly when the direct payment system was not used or when the childbirth expense is smaller than the lump-sum allowance and the worker claims the difference.
Reference
The Japan Health Insurance Association “Raising of the lump-sum childbirth allowance from April 1, 2023, according to the amendment in the Health Insurance Act.”
https://www.kyoukaikenpo.or.jp/g7/cat710/sb3160/sb3190/sbb3193/20230401/
