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This web page is intended to provide general information about funeral prepayment and
Medicaid regulations.
The plan that's best for you can only be determined by you in consultation with  your funeral director.
We would be pleased to be of service, and assist you.
 

Funerals & Medicaid

What You Should Know About Prepaid Funerals & Medicaid

The Advantages Of Funeral Prearrangement

   More and more Americans are discovering the advantages of prearranging their funerals. Preplanning ensures that your own wishes will be carried out and relieves the financial and emotional burdens on your family.
   With any pre-need program you'll be arranging the details in advance. The funeral director will explain the available services and record your selections. At the time of death, your record will be reviewed and your selections will be respected.
   It's in the area of funding that pre-arrangement plans vary. There can be significant differences. Differences that loom larger as you approach the age when you may need extended medical care.
   To help you understand how investing in a prepaid funeral plan can affect your eligibility for Medicaid medical assistance, we've prepared a series of questions and answers.


Q.
What is Medicaid?

A. Medicaid is a federally funded, state-operated program that pays health and medical costs for people whose income and financial resources fall below a certain level. It is administered by the Department of Social Services in your area.

Q. Why would I need it?
A. Because the spiraling cost of health-care can quickly drain your finances. In the event of a major or extended illness, even people who consider themselves well-off financially could be applying for Medicaid benefits in a matter of months.
One example is nursing home care. Due to the high cost of care, many nursing home residents exhaust their savings after only a few months and become dependent on Medicaid.

Q. How do I qualify for it?
A. Medicaid eligibility requirements are strict and vary from state to state. In all cases you are permitted to have only a limited amount of financial resources. Examples of  things counted as resources include bank accounts, bonds, stocks, real estate (except for your home), and cash value life insurance policies.

Q. Would investing in a funeral arrangement plan affect my Medicaid eligibility?
A. It could. Some types of prepaid funeral plans are counted as resources.
Those plans could possibly disqualify you from receiving Medicaid benefits.

Q. Are there any prepayment methods that let me stay eligible for Medicaid?
A. Yes. For example, a term life insurance policy used to fund a pre-need funeral. This kind of policy is nonrefundable and therefore has no "cash surrender" value. It is not counted as a resource when you apply for Medicaid. That means you can select the funeral arrangement of your choice and still qualify for benefits. Be aware that some other types of pre-need arrangements limit the amount of life insurance you can have.

Q. What else should I ask when making my selection?
* If the plan is funded through a trust, find out at what point the total cost of your funeral will be covered. You should also ask who is responsible for paying the taxes on the interest earned.
* If it is an insurance program, find out if the total cost of your funeral is fully covered from the time the policy is issued.
* Ask if the prepayment arrangements you are making guarantee that you or your family will never have to pay any additional amount.
* Before you purchase any funeral prepayment plan, be sure to discuss the arrangements with the Department of Social Services in your locality.
 

This web page is intended to provide general information about funeral prepayment and Medicaid regulations.
The plan that's best for you can only be determined by you in consultation with  your funeral director.
We would be pleased to be of service, and assist you:

Carl U. Eggleston Funeral Establishment
914 South Main Street,
P.O. Box 581
Farmville, VA 23901
(434) 392 7000

info@carlueggleston.com



    Published November 2004

Copyright 2004

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