Does Medicare Cover Funeral Expenses?

Original Medicare (Part A and Part B) does not cover funeral expenses.

If you have a Medicare Medical Savings Account (MSA), your surviving spouse could potentially use any leftover funds from your MSA to help pay for costs they face after you’re gone, which could include your funeral expenses.

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Do Medicare Advantage plans cover funeral costs?

Medicare Advantage plans do not cover funeral costs.

One type of Medicare Advantage plan is called a Medicare Medical Savings Account (MSA). This type of high-deductible Medicare Advantage plan includes a savings account that you can use to pay for qualified healthcare costs.

Each year, Medicare deposits a specific amount of money into your Medical Savings Account. You can use money from your MSA to pay for Medicare-covered services.

If you use money from your MSA to pay for things that aren’t covered by Medicare (such as food or utilities) you will have to pay taxes on the money you take out of your MSA. These costs will not count towards your MSA deductible.

If you pass away, any remaining funds that were deposited in your MSA before the current calendar year become part of your estate. Part of the most recent deposited funds will be repaid back to Medicare.

Money from your estate could theoretically be used to help pay for your funeral expenses. Your beneficiary, however, could potentially have to pay for your funeral costs before receiving any money from your estate.

Am I eligible for a Medical Savings Account (MSA)?

The eligibility criteria for a Medicare Medical Savings Account includes:

  • You’re eligible for Medicare
  • You do not have End-Stage Renal Disease (ESRD)
  • You do not have other health insurance

If you are currently enrolled in Original Medicare, you may have to wait until the Medicare Annual Election Period (AEP) to sign up for a Medicare Medical Savings account (if an MSA is available in your area).

The Medicare AEP lasts from October 15 to December 7 every year.

Learn more about Medicare MSA plans and the Medicare Advantage plans that are available near you by speaking with a licensed insurance agent.

 

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