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Medicare doesn't pay for funeral costs

Does Medicare Pay for Funerals?

Unfortunately, Medicare doesn’t cover burial or funeral costs. Medicare covers health care expenses, but death isn’t an eligible event. Nobody hurries to plan their funeral, but you should know how much it can cost — between $7,000 and $10,000, on average. Below, TSS talks about funeral coverage and options for Medicare funeral assistance. 

Is There a Medicare Death Benefit?

Not currently. However, Social Security pays survivor benefits. The SSA will provide a one-time payment of $255 to a spouse or child. The long-term benefits that a surviving family member gets will depend on:

  • How much the deceased paid into Social Security
  • The survivor age
  • Social Security eligibility  

How to Report a Medicare Recipient’s Death

To report the death of a Medicare recipient, you’d contact Social Security. If the recipient were getting Railroad Retirement Benefits, you’d have to report their passing to the Railroad Retirement Board. Once Social Security processes the beneficiary’s death, CMS will notify any private carriers.

Making Final Arrangements

Having an estate plan will help you prepare to leave a legacy for your family. Some elements to include are: 

  • Life insurance
  • Heirs for your assets
  • Last will
  • Durable Power of Attorney 
  • Advanced medical directives

Your circumstances may change, but you can always reassess your estate plan to accommodate your needs.

Related Post: The Secret Life Insurance Policy

State Help with Funeral Expenses

Each state has a specific budget and rules for funeral aid. You can always call the state department of health or the county coroner for assistance. The Department of Health and Human Services (HHS) may provide burial for impoverished people. You’d apply at the health department in the county where the deceased lived. 

Know that some states don’t provide funeral aid. However, there might be city or county assistance. Funeral help differs across the U.S. But regardless of where you live, final expense policies give your loved one’s peace of mind during a hard time.  

Consider Final Expense Insurance

Every person is different. If you have ample savings to cover all the costs, an insurance policy isn’t necessary. However, if you don’t have final expense savings, a burial policy may suit you well. It’s wise to review your plan and consider final expense insurance if you think your savings might miss the mark.

When you pass away, your policy pays your beneficiary money that can be used for any expense — not just to pay for your funeral.  

Note: Burial insurance and final expense insurance can be used interchangeably.

Related Post: What Should I Know About Final Expense Insurance?

Are Funeral Costs Tax-Deductible?

Recipients that own estates may be eligible for tax deductions. Burial and memorial services related to funeral ceremonies could be tax-deductible, but services have to be reasonable. It may help you to work with a tax specialist to make sure you get the most money back on your tax return.

We Can Help You with Your Medicare Options

Agents at TSS specialize in Medicare insurance plans. If you’d like to compare your current coverage to the other available options, call (855) 952-1941 or run a FREE comparison online. We look forward to helping you!