Does Medicaid pay for cremation? The short answer is that most states don't offer Medicaid funeral assistance. Only Colorado, Indiana, Wisconsin, and Wyoming provide cremation or burial benefits through their Medicaid programs. Even then, it provides limited coverage.

If you're facing immediate cremation costs and wondering whether Medicaid can help, this guide explains which states offer assistance, how much they cover, how to apply, and what other financial options exist when Medicaid doesn't cover cremation expenses.

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Do you have questions about cremation costs in your area? Not sure whether After's transparent pricing is the right fit? We're here to answer every question honestly, with no hidden fees or pressure. Call us 24/7 at 1-844-717-5170.

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Understanding Medicaid and Funeral Coverage

Medicaid was created as a healthcare assistance program, not a funeral benefit program. The federal government designed Medicaid to help families access medical care. This includes things like doctor visits, hospital stays, and prescription medications.

Funeral and cremation services fall outside Medicaid's core mission. That's why the federal Medicaid program doesn't include funeral or cremation coverage as a standard benefit.

However, some states recognized that funeral costs create serious financial hardship for families already struggling economically. These states created their own burial assistance programs that work alongside Medicaid eligibility.

The programs use state funds (not federal Medicaid dollars) to help cover final expenses. This means access to Medicaid funeral assistance depends entirely on where the deceased person lived at the time of death.

The state makes the rules about who qualifies, how much assistance is available, and how families can apply.

Which States Offer Medicaid Funeral Assistance?

Only four states currently provide Medicaid-related funeral assistance: Colorado, Indiana, Wisconsin, and Wyoming. Each state runs its own program with different coverage amounts and eligibility rules.

Colorado: Up to $1,500 Through Burial Assistance Program

Colorado provides up to $1,500 in burial assistance for eligible residents through its Department of Human Services. You can use this money for cremation expenses, covering a significant portion of basic cremation costs.

Eligibility typically requires that the deceased was receiving Medicaid or other qualifying state benefits at the time of death. The state pays the cremation provider directly, families don't receive cash.

Indiana: $1,200 Maximum via Burial Assistance Program

Indiana’s Burial Assistance Program provides up to $1,200 toward funeral services and up to $800 toward burial/cemetery services for eligible Medicaid recipients.

These amounts apply whether the family chooses burial or cremation, since cremation falls under funeral services. The Indiana Family and Social Services Administration manages this program and works directly with funeral homes to process payments.

Wisconsin: Limited State Coverage Program

Wisconsin established a limited burial assistance program for Medicaid recipients and other qualifying low-income residents. The state provides assistance through its Department of Health Services.

Coverage amounts vary based on individual circumstances. Families must demonstrate financial need and show they've exhausted other available resources before qualifying for state assistance.

Wyoming: Up to $1,000 Through the Burial Assistance Program

Wyoming’s Department of Family Services provides up to $1,000 in burial assistance for eligible residents. This support is available for decedents who had insufficient assets and were receiving TANF/POWER, SSI, or certain Medicaid categories at the time of death.

The state pays funeral homes directly rather than issuing funds to families.

What About the Other 46 States?

Most states don't offer Medicaid funeral assistance at the state level. However, many provide burial assistance through county or city programs instead.

While these local programs aren't technically "Medicaid" benefits, they often serve the same population: low-income residents who can't afford funeral or cremation costs. Counties and cities recognize that someone needs to handle final arrangements, even when families can't pay.

States with county or city-level burial assistance include:

• Alaska (General Relief Assistance)
• Connecticut (Department of Social Services)
• Hawaii (MedQuest)
• Illinois (Funeral and Burial Benefits)
• Maine (General Assistance)
• Maryland (Burial Assistance)
• Massachusetts (Funeral and Burial Payment Assistance)
• Michigan (Burial Services)
• New Mexico (Burial Assistance)
• Pennsylvania (Burial and Cremation Services Payment)
• Rhode Island (Financial Assistance with Burial Expense)
• Vermont (General Assistance)
• West Virginia (Burial Assistance)

Contact your county health department or social services office to learn what local programs exist in your area.

How Much Does Cremation Actually Cost?

The National Funeral Directors Association reports that in 2023, the average cremation with a memorial service cost $6,280. Direct cremation without embalming, viewing, or formal services averages between $2,000 to $5,000.

However, cremation costs vary significantly by location. Urban areas typically charge more than rural areas. Coastal states often have higher prices than inland states.

After offers direct cremation services starting at $995 in Arizona, California, Colorado, Nevada, Oregon, Texas, Utah, and Washington. This transparent pricing includes everything required for a simple cremation with no hidden fees or surprise charges.

Even with Medicaid assistance in states like Colorado ($1,500) or Indiana ($1,200), families often need additional funds to cover the full cost of cremation services at traditional funeral homes. That's why finding an affordable cremation provider matters just as much as securing state assistance.

How to Apply for Medicaid Funeral Assistance

The application process for Medicaid funeral assistance varies by state, but several common steps can help you get started.

Contact Your State Department of Human Services

Start by contacting your state's Department of Human Services or equivalent agency. Ask specifically about burial assistance programs for Medicaid recipients.

Be prepared to explain your situation: the deceased person's Medicaid status, when they passed away, and your relationship to them. Some states require applications within a specific timeframe after death. Waiting too long could disqualify you from assistance.

Work With Your Cremation Provider

Many states work directly with licensed funeral directors and cremation providers to process burial assistance applications. The cremation provider often knows more about state assistance programs than families do because they handle these applications regularly.

When you contact a cremation provider, ask about state assistance programs and whether they can help with the application. After's care specialists can explain what assistance might be available in your state and help you understand your options.

Gather Required Documentation

State burial assistance programs typically require documentation proving eligibility. Gather these documents before applying:

• Medicaid enrollment records for the deceased
• Death certificate (certified copy)
• Proof of residency in the state
• Social Security card or documentation
• Evidence of your relationship to the deceased
• Proof of financial need (bank statements, income records)

Having documents organized and ready helps expedite the application during an already stressful time.

Exhaust Other Resources First

Most state programs require families to use other available resources before qualifying for state assistance. This includes:

• Life insurance policies (including small policies the deceased may have had through work)
• Savings accounts or checking accounts in the deceased's name
• Social Security death benefits
• Veterans benefits (if applicable)
• Any other assets or funds the deceased left behind

States view burial assistance as a last resort to provide help for families who truly have no other way to pay for cremation services.

Other Ways to Pay for Cremation Costs

Even without Medicaid funeral assistance, several options can help cover cremation expenses.

Social Security Death Benefit

The Social Security Administration provides a one-time death benefit of $255 to eligible survivors. This payment typically goes to the surviving spouse if they were living with the deceased at the time of death.

If there's no surviving spouse, the payment can go to children who are eligible for monthly benefits on the deceased's record. While $255 won't cover the entire cremation costs, it helps offset some expenses.

Veterans Benefits

If the deceased was a veteran or active military service member, Veterans Affairs may provide burial benefits. VA benefits can include:

• A free burial plot in a national cemetery
• A government headstone or marker
• A burial flag
• A Presidential Memorial Certificate

Some veterans also qualify for a burial allowance that helps cover funeral and cremation costs. Contact the VA at 1-800-827-1000 to learn what benefits might be available.

County Indigent Burial Programs

Many counties operate indigent burial programs for residents who die without funds for final arrangements. These programs typically provide basic cremation services at no cost to the family.

Eligibility requirements vary, but generally, the deceased must have been a county resident, and the family must demonstrate they cannot afford cremation costs. Contact your county health department or coroner's office to learn about local programs.

Payment Plans Through LilyPay

Families who need flexible payment options can use LilyPay to spread cremation costs across 3-12 months for a flat fee. LilyPay also offers crowdfunding through Community Gardens to help cover costs.

This option works well when you have some funds available but can't pay the full cremation cost upfront. After works with LilyPay to make cremation services accessible to more families.

Religious and Community Organizations

Religious organizations often help members with funeral and cremation costs. Even if the deceased wasn't an active member, many churches, mosques, synagogues, and temples have benevolence funds for community members in need.

Local community organizations, fraternal groups, and service clubs sometimes offer funeral assistance as well. Contact organizations that the deceased belonged to and explain your situation. Help may be available.

Crowdfunding Platforms

Online crowdfunding through platforms like GoFundMe, LilyPay Community Gardens, or similar services can help families raise money for cremation costs. Friends, extended family, coworkers, and community members often want to help but don't know how.

Crowdfunding gives them an easy way to contribute.

Be honest and specific in your crowdfunding request. Explain the situation, share what cremation will cost, and let people know exactly how you will use their contributions.

Planning Ahead: How To Avoid This Situation

The best time to address cremation costs is before they become an immediate need. Several planning options can protect your family from financial stress later.

Irrevocable Funeral Trusts

An irrevocable funeral trust lets you set aside money specifically for funeral or cremation expenses during your lifetime. Once established, the funds can't be used for any other purpose. They're guaranteed to be available when you need them.

These trusts provide Medicaid planning benefits because the funds typically aren't counted as available assets for Medicaid eligibility purposes. Each state sets limits on how much money can be placed in these trusts.

If you're on Medicaid or planning to apply for Medicaid, work with an elder law attorney who understands how irrevocable funeral trusts interact with Medicaid eligibility rules.

Prepaid Cremation Plans

Prepaid cremation means paying for your cremation services now, locking in today's prices. Many cremation providers offer prepaid plans with payment options ranging from lump sum to monthly installments.

After offers prepaid cremation plans that let you document your wishes and lock in pricing. This removes the financial burden from your family and guarantees your preferences will be honored.

Final Expense Insurance

Final expense insurance (also called burial insurance) is a small life insurance policy designed specifically to cover funeral and cremation costs. These policies typically range from $5,000 to $25,000 in coverage.

Most final expense policies don't require medical exams, making them accessible even if you have health conditions. Premiums are usually affordable, and the death benefit pays out quickly to help cover immediate expenses.

If you're on Medicaid, consult with an insurance agent who understands Medicaid asset limits. Some final expense policies are structured to avoid interfering with Medicaid eligibility.

Finding Affordable Options When Medicaid Doesn't Pay for Cremation

Families often struggle to cover cremation costs when Medicaid does not pay for cremation, which makes affordable options especially important. Many traditional funeral homes charge extra fees for basic cremation and use pricing structures that are difficult to understand.

After offers a clearer alternative. Our direct cremation package starts at $995 and includes everything that families need: transportation, cremation, required permits, paperwork, and returning the remains. Pricing stays transparent, and families never face hidden fees or sales pressure.

Our care specialists are available around the clock to answer questions, walk through options, and guide families through each step. You can review packages online or call for support at any time. Check out our service areas to see if we’re near you.

If you want help comparing affordable cremation choices, After’s team is available 24/7 at 1-844-717-5170.

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Common Questions About Medicaid and Cremation

Will Medicaid Take My House to Pay for Cremation?

Medicaid will not take your house or any other property to pay for cremation costs. What can happen is Medicaid estate recovery, which may seek repayment for long-term care expenses paid during the person’s lifetime.

This process is separate from cremation coverage and only applies to medical costs Medicaid already paid while the person was alive.

Can I Get Medicaid Assistance If I Live in a State Without a Program?

If you live in a state without a program, then you can sometimes get Medicaid funeral assistance after you check with your county or city government. Many local governments provide indigent burial programs that serve the same population as Medicaid.

How Long Does It Take to Get Medicaid Funeral Assistance?

Processing Medicaid funeral assistance can take several weeks, depending on the state. In some places, families must arrange and pay for cremation upfront and then apply for reimbursement. Other states work directly with cremation providers to cover approved costs.

What If the Deceased Had Life Insurance?

If the deceased had life insurance, then people must apply those funds before state burial assistance becomes available. Most programs require families to exhaust life insurance benefits first because state support is intended only as a last resort.

Does Medicaid Cover Memorial Services or Urns?

Medicaid does not cover memorial services or urns in most cases. Medicaid funeral assistance generally covers only basic cremation or burial services. 

Additional death certificates and similar extras are also not part of their coverage. The support is meant to cover the essential costs needed to handle the remains.