Does Medicare Cover Funeral Expenses? What Pays Instead

Does Medicare pay for funeral expenses?

No. Medicare has no death benefit. It does not pay for a funeral service, burial, cremation, a casket, a headstone or any other final expense. This is true for Part A (hospital), Part B (medical), Part D (drugs), Medicare Advantage (Part C) and Medigap.

Medicare pays for covered medical care received before death. Bills for that care, such as a final hospital stay, are handled like any other Medicare claim. Nothing is paid for what happens after death.

What Medicare covers at the end of life

Medicare does help with care near the end of life, mainly through hospice. According to Medicare.gov, people with Part A can get hospice care when a hospice doctor and their regular doctor (if they have one) certify they are terminally ill with a life expectancy of 6 months or less. The person must choose comfort care instead of care to cure the illness.

• Covered: hospice services arranged by the hospice team, drugs for pain and symptom relief, short-term respite care so the family caregiver can rest, and grief and loss counseling for the patient and family.
• Costs: Medicare.gov says there is no charge for covered hospice care, except a copayment of up to $5 per prescription for symptom drugs and 5% of the Medicare-approved amount for inpatient respite care.
• Not covered: room and board at home or in a nursing home, treatment meant to cure the terminal illness, and the funeral or burial.

So Medicare can ease the cost of the final months. It cannot help with the bill from the funeral home.

Do Medicare Advantage or Medigap plans cover funeral costs?

Medicare Advantage plans are offered by private companies approved by Medicare. They must cover all the services Original Medicare covers. Medicare.gov says most plans also offer extra benefits Original Medicare does not cover, like some vision, hearing and dental services, and fitness programs. These extras are health-related. A funeral is not a Medicare benefit, so do not count on a Medicare Advantage plan to pay for one. If you are unsure, read your plan's Evidence of Coverage or call the plan.

Medigap (Medicare Supplement Insurance) helps pay your share of costs in Original Medicare, like copayments, coinsurance and deductibles. It follows Medicare's rules, so it does not pay for a funeral either.

Does Medicaid pay for funerals?

Medicaid itself does not pay for funerals. But Medicaid rules affect how people can save for one:

• Irrevocable funeral contracts and trusts. Many states do not count money placed in an irrevocable prepaid funeral contract or funeral trust as an asset for Medicaid. "Irrevocable" means you cannot cancel it and take the money back. Limits and rules vary by state. See our page on burial trust funds.
• Burial funds. For SSI, Social Security lets a person set aside up to $1,500 (and up to $1,500 for a spouse) for burial expenses without it counting. Many state Medicaid programs have similar burial fund rules. See SSI burial funds.
• Estate recovery. Medicaid.gov says states must try to recover certain Medicaid costs from the estates of enrollees who were 55 or older, such as nursing home care and home and community-based services. States may not recover while a spouse, a child under 21, or a blind or disabled child is still living, and they must offer hardship waivers.

Because rules differ so much by state, ask your state Medicaid office before buying a funeral contract or life insurance policy if you are on Medicaid or may need it later. You can also browse our common questions.

What does help pay for a funeral

None of these government sources covers a full funeral on its own. For a full list of options, including payment plans and lower-cost choices, see how to pay for a funeral. To estimate what a funeral may cost in your area, try the funeral cost calculator.

Lower-cost choices families sometimes use

• Direct cremation or direct burial. These skip the viewing and service at the funeral home and usually cost less. You can hold a memorial later.
• Comparing prices. Under the FTC Funeral Rule, funeral homes must give you prices, including by phone. You can buy only what you want.
• Body donation. The FTC lists donating the body to science as one of the choices families make. Medical schools and hospitals run their own programs with their own rules, so contact one directly well ahead of time.

Learn more in our guide to funeral costs and the FTC's consumer guide linked below.

Is there Medicare burial insurance?

No. Medicare does not sell burial insurance, and there is no government burial insurance for people on Medicare. Some ads use words like "Medicare" or "government program" next to burial or final expense insurance. Those policies are sold by private insurance companies. You pay premiums for them.

If an ad says a policy is free or government-backed, read our page on free burial insurance and the final expense program first. Private burial insurance can still be a sensible way to help pay for a funeral. Just know what you are buying.

Example: how the money might add up

Example (hypothetical round numbers): Suppose a widow's husband dies after several weeks in hospice. Medicare paid for his hospice care, so the family owed little for it. The funeral home quotes $8,000 for a funeral and burial. Medicare pays $0. Social Security pays the $255 lump sum to her as his surviving spouse. His $5,000 final expense insurance policy pays her as beneficiary. The family still needs about $2,745 from savings, or can choose a lower-cost option.

The numbers above are made up to show how the pieces fit. Real funeral prices vary widely. Our coverage calculator can help you think about how much coverage, if any, could help fill the gap for your family.