Does Medicaid Pay for Funeral Costs?
Updated April 2026 · Short answer: barely.
Medicaid provides very limited funeral assistance — and it varies by state.
In West Virginia, the Department of Health and Human Resources (DHHR) offers up to $1,000 in burial assistance for eligible families. That's it.
The average WV funeral costs $7,848.
$1,000 out of $7,848 = Medicaid covers 13%. Your family covers the other 87%.
Why Medicaid Families Get Hit the Hardest
"This is the cruelest irony in the funeral industry: the families who can LEAST afford a funeral are the ones with NO resources to pay for it."
Medicaid requires you to spend down assets. To qualify for Medicaid (especially nursing home Medicaid), you must exhaust nearly all your savings. By the time you die, there's nothing left. No savings account. No investments. No emergency fund. Medicaid ensured you were broke BEFORE you died.
There's no estate to pay from. The normal path — "funeral costs come from the estate" — doesn't work when Medicaid required the estate to be emptied while the person was still alive.
Life insurance may have been surrendered. Some Medicaid applicants are advised to cash in life insurance policies during the spend-down process. If the policy was surrendered for its cash value, there's no death benefit left.
The family has been supporting a Medicaid recipient. Adult children who've been helping Mom pay for things Medicaid doesn't cover (clothing, personal items, phone) are already stretched thin. Then the funeral bill arrives.
"Medicaid kept your parent alive and housed for years. But it left your family with a $7,000 bill the day they died. The system is not designed to help with this."
WV DHHR Burial Assistance
West Virginia DHHR — up to $1,000
- • Income-based eligibility
- • Applied for AFTER death
- • Covers a portion of burial or cremation costs
- • Contact your county DHHR office to apply
- • You'll need: death certificate, funeral home invoice, proof of income/assets
This is not automatic. Many eligible families never apply because they don't know this program exists. The funeral home usually doesn't tell you either — it's not their job.
Other States' Medicaid Funeral Assistance
| State | Max Burial Assistance | Notes |
|---|---|---|
| West Virginia | $1,000 | Through DHHR, income-based |
| Ohio | $1,000–$1,250 | County-administered |
| Virginia | Varies by locality | Limited programs |
| Kentucky | $1,800 | Through DCBS |
| Pennsylvania | $750 | Very limited |
| National average | $1,000–$1,500 | Most states offer something |
"No state's Medicaid funeral assistance comes close to covering the full cost. The maximum in any state is roughly $2,000 — covering 25% of the average funeral at best."
The Bill After Medicaid's $1,000
| Expense | Cost | Medicaid Pays |
|---|---|---|
| Funeral home services | $7,848 | $0 |
| DHHR burial assistance | — | Up to $1,000 |
| Cemetery plot | $1,000–$2,500 | $0 |
| Headstone | $1,000–$3,000 | $0 |
| TOTAL COST | $10,000–$13,000+ | $1,000 max |
| FAMILY PAYS | $9,000–$12,000+ | |
Other potential help:
| Source | Amount |
|---|---|
| Social Security death benefit | $255 |
| VA burial benefits (if veteran) | Up to $2,004 |
| UMWA death benefits (if mine worker) | Varies |
Best case for a WV Medicaid veteran: $1,000 (DHHR) + $2,004 (VA) + $255 (SS) = $3,259 in assistance. Family still pays $4,500–$9,000+.
Worst case for a non-veteran Medicaid recipient: $1,000 (DHHR) + $255 (SS) = $1,255 total. Family pays $8,500–$12,000+.
On Medicaid? Your Funeral Costs Are NOT Covered
Final expense policies up to $10,000 are exempt from Medicaid spend-down. Your family gets the payout — not the state.
📞 Call 1-855-321-3094Free quote · No obligation · Licensed agents
The 6 Ways It Really Happens
1. Adult children split the bill. The most common outcome. Three children split $7,500 three ways — $2,500 each on credit cards, from savings, or borrowed from friends. Nobody planned for it. Nobody budgeted for it.
2. Direct cremation ($1,000–$2,300). The most practical choice when money is the deciding factor. No service, no viewing, no embalming. The DHHR's $1,000 nearly covers the entire cremation cost in some WV markets — making direct cremation essentially free when combined with the assistance.
3. GoFundMe / community fundraising. Increasingly common. The family raises $3,000–$5,000 online, combines it with DHHR assistance, and covers a modest funeral. Churches and community organizations often contribute.
4. Funeral home payment plans. Some funeral homes offer financing. Interest rates vary. Ask BEFORE signing the contract — don't assume payment plans are available or affordable.
5. Body donation ($0). WVU Human Gift Registry: (304) 293-6322. The institution covers ALL costs. The family holds a memorial gathering without the body present. Remains are returned (cremated) within 1–3 years at no charge.
6. County indigent burial ($0). If nobody can pay and nobody claims the body, the county arranges a basic burial or cremation at public expense. Contact the county coroner or DHHR.
→ Complete guide to cheapest options
💡 Did you know? A life insurance policy up to $10,000 is generally EXEMPT from Medicaid spend-down in West Virginia. Most families — and most Medicaid caseworkers — don't know this.
Final Expense Insurance — And How It Works WITH Medicaid
"Here's what most Medicaid families don't know: you CAN have life insurance AND be on Medicaid."
Small life insurance policies are exempt from Medicaid spend-down. In most states including WV, a final expense / burial insurance policy with a face value of $10,000 or less is EXEMPT from Medicaid asset calculations. This means:
- • You can BUY a $10,000 final expense policy while on Medicaid
- • You don't have to surrender it during spend-down
- • The death benefit goes directly to your beneficiary — NOT to Medicaid
- • It pays within 24–72 hours — fast enough to cover the funeral
The Medicaid exemption threshold varies by state. In WV, policies up to $10,000 in face value are generally protected. Consult with a Medicaid planner or elder law attorney for your specific situation.
This is the single most important financial fact for Medicaid families: You are allowed to protect your funeral costs from Medicaid spend-down. Most families don't know this. Most Medicaid caseworkers don't volunteer this information.
The Math for Medicaid Families
Without final expense insurance
Mom dies after 3 years in a nursing home. Savings: $0 (spent down for Medicaid). Life insurance: $0 (surrendered during spend-down). DHHR pays: $1,000. Social Security: $255. Family pays: $6,500+ out of pocket.
With a $10,000 final expense policy
Mom had a $10,000 final expense policy ($45/month) that was exempt from Medicaid spend-down. She dies after 3 years. Policy pays $10,000 to her daughter within 72 hours. Funeral ($7,848) fully covered. Remaining $2,152 helps with other expenses. Family pays: $0 out of pocket.
"The $45/month she paid for 3 years ($1,620 total) produced a $10,000 payout. Her daughter paid nothing. That's the difference one policy makes."
Protect Your Funeral Costs from Medicaid Spend-Down
Policies up to $10,000 are generally exempt. Your family gets the money — not Medicaid.
Licensed advisors · Mon-Sat 8am-8pm ET · Ad · We may earn a referral fee
Action Plan — If Someone on Medicaid Just Died
1. Call your county DHHR office immediately. Apply for the burial assistance (up to $1,000). You need: death certificate, funeral home invoice, proof of the deceased's income/assets. Apply as soon as possible — there may be a deadline.
2. Check for any life insurance that survived spend-down. Small policies ($10,000 or less) may have been exempted. Check the deceased's paperwork, mail, and files. Call any insurance company you find.
3. If they were a veteran — file for VA benefits. Up to $2,004. Call 1-800-827-1000. Any funeral home can help.
4. Ask about employer life insurance — even from decades ago. Call every employer from the last 30 years. Group life insurance policies sometimes remain in effect long after employment ended.
5. Consider direct cremation. At $1,000–$1,300 in most WV markets, the DHHR assistance nearly covers the entire cost. This may be the most practical option for Medicaid families.
6. Don't let guilt drive the decision. A $1,200 direct cremation followed by a memorial at your church honors your parent just as much as an $8,000 traditional funeral. Your parent spent their final years on Medicaid — they would understand choosing the affordable option.
Frequently Asked Questions
Don't Let Medicaid Spend Down Your Family's Options
A $10,000 policy at $45/month is exempt from Medicaid. Your family gets the payout. The funeral is covered.
📞 Call: 1-855-321-3094Learn more about final expense insurance →
Ad · We may earn a referral fee