Is a funeral plan considered a Medicaid asset?
Is a prearranged funeral service plan and cemetery interment rights consider by Medicaid as an asset in the qualification process?
Expert Answer
Generally, a cemetery burial plot or interment rights are not considered by Medicaid when counting an applicant's assets. Likewise, a separately maintained fund to pay funeral expenses, or a prepaid funeral service plan, does not count as an asset. However, there may be limits on the value of the fund or prepaid plan that will be exempted from Medicaid asset limits. Each state may make its own rules about this, but the value limit is often set at $1,500.
To find out the exact rules for your state, you can go onto the state's Medicaid Web site. Use any Internet search engine and enter "Medicaid" and the name of your state. Or, you can call the Eldercare Locator toll-free at 800-677-1116 and ask for contact information for your state's Medicaid office, then call the main office and ask about the rules and dollar limits in your state.