Medicare Funeral Coverage, Death Benefits & Final Expenses (2024)

Key Takeaways

Funeral costs and final expenses have the potential to become a significant strain on your family after you die.

According to the National Funeral Directors Association, the median cost of a funeral with viewing and burial in 2021 was $7,848. That price does not include cemetery charges, monument charges and other potential bills such as for an obituary.

Cost associated with a funeral are not considered medical expenses, which means they are not covered under Medicare. Medicare will, however, cover mental health services, including grief counseling.

For other, non-medical fees, a few limited options are available through government programs. With proper planning, you can help ease the burden of financial obligations your loved ones may face after you die.

Did You Know?

FEMA is providing financial assistance for COVID-19 related funeral expenses incurred after Jan. 20, 2020.

Your loved ones could potentially use a Medicare Medical Savings Account (MSA) to help cover funeral costs. An MSA is a Medicare Advantage plan that sets up a bank account for you to use to cover your health expenses. It is only available in some states and has a high deductible.

Anything left in the account when you die becomes part of your estate and could go back to your family or beneficiary and be used toward your final expenses. The funds may not cover everything because funerals can be costly. Depending on how quickly your family moves forward with burial services, the money might not be available in time.

Social Security may provide a death payment that can be used toward funeral expenses, but it is unlikely to be a substantial amount. Your surviving spouse or child will receive a lump-sum payment of $255 if they meet certain requirements.

In most cases, your spouse will receive the death payment if you are living together when you die. If you are not living together at the time of your death, your spouse can still be eligible for the payment so long as they receive certain Social Security benefits on your record.

If you are not survived by a spouse, the money can go to your child or children if they are eligible for benefits on your record in the month of your death.

According to AARP, this benefit should be automatically paid out once the death is reported to the Social Security Administration. But since funeral services often take place very quickly, there is a chance this money won’t arrive in time.

If your spouse or child is eligible but not receiving benefits when you die, they must apply for the death payment within two years of the date of death.

Have you selected your 2024 Medicare plan?

Maximize your Medicare savings by connecting with a licensed insurance agent. Annual Enrollment is open until December 7th.

You will need to report a Medicare beneficiary’s death — whether they had been receiving Original Medicare or Medicare Advantage.

Receiving benefits meant for someone who has died is considered fraud, and you should notify Social Security of a death as soon as possible.

Have the deceased person’s Social Security number ready and call Social Security at 1-800-772-1213 to report the death.

The funeral home you use can often handle contacting Medicare and Social Security to report the death if you give them the Social Security number.

A death must also be reported to the U.S. Railroad Retirement Board if the deceased person had been receiving benefits. A RRB representative can be reached at 1-877-772-5772.

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