Medicaid, the nation’s primary healthcare insurer, plays a crucial role in supporting individuals. Qualification guidelines for the program vary among states and even within counties.
In Minnesota, known as Medical Assistance (MA), Medicaid covers doctor visits, hospital stays, and prescriptions. However, it doesn’t directly fund funerals. Yet, there are provisions allowing individuals to finance final expenses.
Prepaid Funeral Plans
Before enrolling in medical assistance, individuals often initiate a “spenddown,” enabling them to allocate funds into an irrevocable funeral trust or insurance policy. These funds, dedicated to burial expenses, cease to count as assets during assistance applications. Irrevocable funeral insurance cannot be canceled or cashed before death, with funeral homes accessing these funds after the individual’s passing.
By setting money aside before seeking medical assistance, one can ensure a personalized funeral without financially burdening loved ones. Additionally, a prepaid funeral account accrues interest, exempt from being considered an asset.
It’s important to note that leftover funds after funeral expenses typically revert to the deceased’s estate. However, counties may claim these funds for supporting the individual’s care.