Does Medicaid Cover Funeral Expenses [Get The Facts]

Medicaid is intended to provide medical assistance to those in need, but does it cover funeral expenses?

While this may be an uncomfortable issue to discuss with your loved ones, it is better to be prepared for anything given the high expense of the funeral service.

So, if you’re wondering if Medicaid will cover these expenses, keep reading to find out. We’ve compiled all of the information you’ll need in one spot to ensure you know what to anticipate and how to manage the budget.

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What Is Medicaid And Who Is Eligible?

Medicaid was founded by the United States government in 1965 as a financial assistance program for needy families and individuals, covering a portion or full medical expenses. 

Although most basic medical therapies are covered in general, each state has the power to amend its norms and regulations.

Eligible people must be under the poverty line with all of their assets, which is vital to remember for subsequent assessment of funeral aid.

These groups are notably well-served among those who are typically deemed eligible:

  • Pregnant women
  • Low-income children
  • Low-income adults aged 65 or older
  • Low-income parents of Medicaid-eligible children
  • Disabled adults receiving Social Security Disability (SSI)

Is this, however, a guarantee that everyone’s funeral expenses would be covered? Continue reading till the end to find out all the details.

Does Medicaid Cover Funeral Expenses?

Funeral expenditures may be paid by Medicaid in certain states, but not all.

This can be a tough benefit to establish because it is not covered by default and there are a few things you should be aware of. Each state has the authority to define what and how many benefits are provided.

This leaves Medicaid recipients unclear what is covered and what they must pay for themselves. This is why it’s always a good idea to call your state’s Medicaid reps and inquire about details in your state.

Does Medicaid cover pay for the cremation?

Cremation is another option for you or your loved ones to consider because it is generally less expensive and is often the patient’s last request. In most circumstances, however, Medicaid will not pay the expense of cremation.

Continue reading for more information.

What States Have Funeral Assistance?

There are a few states that will assist you with the expense of funerals.

As an example:

  • Michigan – This state provides a burial payment of up to $475 to the funeral home.
  • Wisconsin – The state of Wisconsin has a specialized assistance program that provides up to $1,500 in funeral expenses.
  • New Mexico – If you live in this state, your complete funeral expenses will most likely be reimbursed.
  • Rhode Island – Funeral aid in Rhode Island costs an average of $900.

States such as Montana, Kansas, Arizona, Arkansas, North Carolina, New York, and South Carolina, among others, do not have state burial resources. However, bear in mind that these restrictions are always changing, and you can remain up to date by checking our website.

How to find out if your state will cover the funeral costs with Medicaid?

Because each state is different, you must ensure that your expenditures are covered, and the best method to do so is:

  1. Search online for the Medicaid agency in your state;
  2. Contact your Medicaid representative;
  3. Contact your health insurance company for more details;

Furthermore, you may always call the funeral home of your choice for further information.

How To Access Medicaid’s Funeral Assistance?

There is no particular step-by-step guide to accessing your Medicaid funeral assistance program since some states will provide one while others will not.

If your state isn’t on the list, don’t despair; there are still methods to save money on funerals and other services. You only need to complete the following:

  • Make sure there are Medicaid funds available in your state;
  • Contact your coroner;
  • Reach out to different state programs for assistance.

How much does a funeral cost?

The funeral is not only emotionally difficult for you and your loved ones, but it is also highly expensive to meet all of the expenses. People with low incomes may struggle considerably as a result of this.

In the United States, the average cost of funeral services is about $9,000, whereas cremation is less expensive, ranging from $800 to $4,000. 

This implies that any price decrease or financial support is much appreciated.

How Medicaid services can reduce the price of the funeral?

Making alterations while enrolling in the Medicaid program is one strategy to lower the cost of the funeral.

Given that every individual qualifying for the program must be below the poverty level, including all assets and earnings, there are certain methods to save money for a funeral while keeping it distinct from assets.

You have three possibilities for doing so:

  • Irrevocable contract with the funeral home

This contract states that you can set away money for your funeral and it will not be counted when Medicaid evaluates your assets. This contract cannot be canceled or pursued in any way. The cash may only be transferred to another funeral home. You have the option of setting away up to $8,000 for this fund.

  • Revocable contract with the funeral home

There is no fund limit if you form a revocable contract, but those assets are returned to the state if you terminate the contract.

  • Life insurance

There are certain life insurance plans available with death payouts of up to $1,500 that you can purchase.

This means you might be qualified for Medicaid and get coverage for all of your medical needs while also saving money for funeral expenses.

Final Thoughts

Medicaid is a wonderful government program that will help you with many medical services; but, funeral costs may not be covered. 

If your state does not have the finances to pay the fees, there are a few additional options to ensure that you and your loved ones enjoy the respectful burial they deserve.

David Duford
Author: David Duford