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To receive Medicaid, you must meet certain income requirements. However, prepaid funeral plans are not counted as part of your assets when determining eligibility, so that could increase the odds your application will be approved. If you plan to seek Medicaid coverage, the following will help explain why it’s best to set aside money for your funeral beforehand.    

What Are the Qualifications for Medicaid?

Medicaid is funded by the government and provides health coverage to 65.7 million individuals. When determining financial eligibility, Modified Adjusted Gross Income is considered. Some people make too much with their monthly income to meet the eligibility requirements. Spending the excess money, known as a spend down, lowers their adjusted income to help them qualify for Medicaid.  

How Will a Prepaid Funeral Help You Meet their Criteria?

prepaid funeral plansMaking prepaid funeral plans is an effective way to save for the future while whittling down excess income to qualify for Medicaid. Prepaying means that the money is set aside in an irrevocable funeral trust. This does not fall under the asset limitations, which means it won’t be counted in your Modified Adjusted Gross Income. Reserving the money ensures you can also create the funeral you want. This is not the case when planning a funeral after receiving coverage, as only a set amount of money will be earmarked to cover a funeral service.

 

For help making prepaid funeral plans, contact the professionals at Fred D. Knapp & Son Funeral Home in Greenwich, CT. The funeral home has been serving families in the Fairfield County area since 1846. The friendly staff will help you understand the costs of a funeral and set up an irrevocable trust to relieve the financial burden on your family down the line and make you a more qualified candidate for Medicaid. To discuss your funeral planning needs, call (203) 869-0315 or reach out online for a consultation. 

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