Are you wonder does Medicaid cover funeral expenses? The answer is no, Medicaid does not cover 100% of funeral expenses and it does not offer financial assistance in every state because their benefits are done on a state level. Only Indiana, Wisconsin, Colorado and Wyoming offer any kind of Medicaid financial assistance for burials and funerals on the state level.
The amounts of financial relief offered by those 4 state’s Medicaid programs are too small to cover the entire funeral costs. If you are not in one of those 4 states Medicaid will not cover funeral expenses for you at all. You will have to look at your county levels for other assistance programs.
In this article we will list the available states & their programs, why they will not cover everything and alternatives to consider.
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Does Medicaid Cover Funeral Expenses in Your State?
If you are in the states listed below you can apply for financial assistance with Medicaid. Again with the cost of a funeral or cremation being so high in the United States($7,848 median cost for funeral & $6,970 for cremation) the amount offered for Medicaid to pay for a funeral is too small to ensure everything is covered.
Medicaid Funeral Assistance States & Amount of Funds for Assistance
- Colorado – If you look at the link provided you will see they only offer $1,500 in a burial grant. As we mentioned if your burial is $7,848 or higher this will not cover all of the expenses. It will provide some relief but you will still have to come up with the remaining balance somehow(crowd funding, taking out a loan etc.)
- Indiana – Looking at the Q&A section provided in that link you will see the maximum for burial assistance is $1,200 for funeral expenses with $800 for cemetery expenses. This totals $2,000 to pay towards funeral services so if a funeral is $7,848 or higher in your State of Indiana it will not cover all of the expenses.
- Wisconsin – They will offer $1,500 to pay for funeral and burial from Medicaid services. However this is only if the total cost from the funeral home does not exceed $4,500 for the burial expenses. They will also offer $1,000 for cemetery and crematory services if the cost of those services does not exceed $3,500. If the burial costs or cremation expenses are higher than this your the eligibility for this program is denied.
- Wyoming – They also only offer $1,500 to pay for funeral expenses. This amount can help cover some of the burial or cremation but not all of it. After the amount is used for funeral expenses there will still most likely be a balance due for the remaining amount of funeral services.
Qualifying for these 4 State’s Medicaid Funeral Assistance Program
We will summarize the requirements to qualify for these 4 states different programs directly from their websites.
- Receiving public & medical assistance at time of death
- Total cost of burial or cremation cannot be above $2,500
- Assets & assistance from family members must be considered
- Payment for burial & cremation is direct to the providers of service
Must be in following categories to be eligible:
- Medicaid for the Aged
- Medicaid for the Disabled
- Medicaid for the Disabled Working
- Medicaid for the Blind
- Medicaid for the SSI
- Medicaid for Nursing Home Room & Board
- Application for the program must be sent within 12 months of decedents date of death
- Funeral home to provide Itemized list of expenses
- Cemeteries & Crematories to also provide itemized list of expenses
- Deceased person must not have sufficient funds in their estate or other resources to pay burial or cremation costs
- Visit the link provided in this article to assess more eligibility requirements for Wyoming
Will it Cover a Burial?
Based on the National Funeral Directors Association(NFDA) data for the price of burial in the USA which is $7,848 median cost then no. These programs in these select states will not pay for the entire burial only financial assistance if you are not in any of the 4 states we have mentioned you will have to look at the county level for different programs.
That being said based on our experience all government whether it be state or county programs is never enough to pay the full cost of a funeral.
Direct Burial Still too Expensive to Cover
Now as for a direct burial these programs still may not cover that with the average price being $2,500 according to funeralocity.com who got their data from the NFDA also. That being said this is still a great option if you or your loved ones do not want to suffer a financial burden with a full service funeral.
This type of funeral does strip down everything essentially because it is cheap. If you are ok with honoring your loved ones memory in that regard this could be a great option to ensure the expense’s are almost or completely covered with an assistance program.
Will it Cover a Cremation?
The NFDA says the median cost of a cremation is $6,970 this means none of the Medicaid funeral assistance programs will cover a regular cremation in full. The amount of money offered from any of the programs mentioned is too small to pay the full cost of a funeral with a cremation.
Direct Cremation Possibly Too Expensive to Cover
The most affordable type of cremation average cost is $2,183 for a direct cremation. Now if you live in one of the 4 states mentioned in this article that offer Medicaid burial assistance this can pay for a large portion or possibly all the direct cremation costs.
If you do not live in the 4 states we have mentioned in this article Medicaid will not cover these funeral expenses.
Can Medicare Cover Funeral Costs?
No Medicare does not cover funeral costs because it is strictly health insurance. There is no type of benefits for funeral assistance with Medicare.
So to answer the question does Medicaid cover funeral expenses? The answer is no it does not cover all of the expenses associated with funerals and only if you live in one of the 4 states mentioned in this article can you receive any kind of assistance for it.
You also have to qualify for these select programs in these select states and not everyone qualifies. So if you live in one of these states and meet the eligibility criteria we have listed then apply for the benefits but if you do not you will have to look elsewhere.
Consider Life Insurance for Final Expenses
Even if you live in the states mentioned in this article that offer these programs you need to consider other options. Life insurance is the best option for individuals while they are alive to invest into. This is because these plans stay with you for life and no matter when you die they will pay out their benefits.
You can get policies of between $1,000 – $50,000 for very affordable monthly fees depending on your age, health and gender. If you get a policy for $10,000 or higher you or your loved ones funeral can be covered in full. Work with a licensed life insurance agent to learn more about your options.