When a member passed on, the money in MA will be cash out to beneficiaries right? With the limited use of MA, usually there is balance in MA i suppose.

Should be correct, hence better to do CPF nomination to decide who to distribute to before death.

Yes la

MWhat's

Yes, it will be cashed out to nominated beneficiary. Not really limited use - can use for insurance or if one is sick. You will be surprised many elderly don't have much in medisave.