When you plan for end-of-life expenses, you have options. You can choose either a funeral and burial or cremation. You can opt for a viewing ceremony and wake or skip a memorial service altogether. You can scatter the cremated remains or store them in an urn. The list is long, and cost is a major consideration.
In Florida, about 70% of residents choose cremation for their loved ones. It’s more affordable, more environmentally friendly, and provides a simple but dignified solution. In Miami, the average price of cremation in Florida can vary depending on several factors, making it essential for you to understand your financial options.
One common question is “How much does Medicaid allow for funeral expenses?”
Unfortunately, Medicaid does not directly pay for funeral expenses. However, there are certain exclusions to this rule, which we’ll explain.
How Much Does Cremation Cost in Florida?
The average price of cremation in Florida ranges from $800 to $6,000 or more, depending on the services you choose. A direct cremation without additional services like a memorial or funeral service may range from $800 to $2,000.
If a memorial service, viewing, and more elaborate urn are included, the cost of cremation in Florida can quickly go as high as $6,000 or more.
However, in each case, cremation is less expensive than a traditional funeral and burial, which now costs about $8,300, according to the National Funeral Directors Association (NFDA).
Factors Affecting the Cost of Cremation in Florida
Several factors contribute to the variation in cremation prices across Florida, including:
Location
Prices can vary between urban and rural areas and even within different providers in the same city.
In some cases, there can be thousands of dollars of difference for the same services. For example, the average cost of direct cremation in Miami is $1,403 while the same service in Pensacola averages $3,210 and $2,095 in Tallahassee.
Competition
The number of available options near you can also make a difference in pricing structures for cremation and funeral service providers.
Service Provider
Different funeral homes and cremation service providers offer pricing tiers, and some may include additional services that contribute to a higher cost.
Add-Ons and Services
Families may choose to add services like embalming, a memorial service, or a special urn. These additional features can increase the total cost of cremation significantly.
Trends in Cremation Costs
As cremation becomes a more common choice, the cost of cremation in Florida has remained relatively steady, though it can fluctuate based on inflation, economic factors, and regional demand. In the past few years, it’s risen about 4% per year.
The increased demand for cremation has led to a greater variety of service providers, which has helped some families find more affordable options. However, the added options for urns, services, and memorials can still lead to high expenses, especially in metropolitan areas like Miami.
What Is the Medicaid Exclusion for Funeral Plans?
Medicaid is a federal and state program designed to assist low-income individuals with healthcare costs. While Medicaid does cover certain healthcare costs for qualifying individuals, it has strict limitations regarding funeral plans.
What Does Medicare Allow for Funeral Expenses?
Medicaid does not directly pay for funeral expenses. The reason Medicaid does not cover funeral expenses comes from its legislative intent. Medicaid is designed to provide healthcare coverage, not to pay for funeral or end-of-life costs. As such, funeral expenses are considered a personal responsibility that falls outside the scope of Medicaid’s primary purpose: healthcare assistance.
Medicaid also limits the assets you can have without affecting your eligibility for assistance. Funeral expenses, including pre-paid funeral arrangements or burial insurance, are considered assets that could disqualify an individual from receiving Medicaid benefits in most states, including Florida.
However, there’s an exception made for certain Medicaid funeral expenses.
Under the Medicaid ESS policy manual, Medicaid families can exclude assets that have been used to pay for a prepaid burial trust at a funeral home if the trust is irrevocable. If it is cancelable, it cannot be excluded. Up to $2,500 of the trust can be excluded from income by providing proof of the contract.
You can also exclude up to $2,500 for you and your spouse as long as they are specifically designated for burial expenses. The funds must be “separately identifiable,” meaning they must be specifically designated for funeral expenses. One strategy is to set up a separate bank account that is labeled for funeral costs. You can have more than $2,500 in this account, but any additional amount will be considered an asset and not excluded.
Why Medicaid Excludes Funeral Costs
This exclusion is meant to prevent individuals from diverting assets to qualify for Medicaid, which is intended to support healthcare needs rather than financial planning for death. States like Florida follow these federal guidelines, leading to limitations on the use of Medicaid funds for funeral expenses.
Who Qualifies for Medicaid?
Understanding who qualifies for Medicaid is critical when planning for funeral expenses. The eligibility requirements can determine how much assistance an individual can receive and whether they are subject to Medicaid funeral expense exclusions.
Eligibility Requirements for Medicaid in Florida
Medicaid eligibility in Florida is based on income and asset limits. The program is designed to assist low-income individuals, families, and those with disabilities. In Florida, individuals must meet specific criteria, including:
- Income Limits: Income must be below a certain threshold, which varies depending on family size and specific Medicaid programs. In Florida, for example, families with children between the ages of one and 18 cannot have an income higher than 138% of the federal poverty level.
- Asset Limits: In general, individuals cannot have more than $2,000 in “countable assets,“ which include cash, bank accounts, stocks, or investments. Certain assets, such as your home, vehicle, or personal belongings do not apply.
Seniors and disabled individuals often have different Medicaid requirements.
For seniors, eligibility is typically based on both income and assets, as well as age-related factors. Disabled individuals may be eligible for Medicaid through a different program, such as Medicaid for the Aged, Blind, and Disabled (ABD). In Florida, this program is called SSI-Related Medicaid. For these groups, Medicaid may cover certain healthcare costs related to long-term care, but it does not extend to funeral planning.
How Medicaid Affects Funeral Planning
Because Medicaid recipients are subject to asset limits, planning for funeral expenses can be complicated. Prepaid funeral plans (unless irrevocable) and burial insurance are considered assets, which means they could disqualify you from receiving Medicaid benefits.
If you apply for Medicaid and have these assets, it could affect your eligibility. This creates a challenge for families trying to plan for the future while remaining eligible for Medicaid assistance.
Does Medicare Pay for Funeral Expenses?
Many people confuse Medicaid with Medicare, but these two programs have very different purposes. Medicare is a federal program that provides healthcare coverage for those over the age of 65 or those with certain disabilities. Medicare does not cover funeral expenses, including cremation.
Seniors who rely on Medicare may be concerned about how to handle funeral costs. Because Medicare does not provide coverage for funeral services, families must explore other options, such as savings, life insurance, or indigent services, depending on their eligibility.
How to Lower Costs and Get Free Cremation in Florida
When looking to lower your costs, there are several strategies that can help, including whole body donation to science. Let’s take a look at how you can lower the cost of cremation in Florida.
Shop Around
Cremation prices vary widely, so it’s important to compare costs across different providers. Shopping around can help you the most affordable option.
Some providers will list their prices online. Under the Federal Trade Commission’s Funeral Rule, all providers must present you with a General Price List (GPL). The GPL is an itemized list of the services offered and the costs. By law, you only have to choose the options you want, although you may find a package price of the most commonly requested items to be your best choice. Some fees, such as administrative fees and permitting, may be mandatory.
Opt for Direct Cremation
For families seeking a low-cost option, direct cremation is a simple and cost-effective solution. With direct cremation, the body is cremated shortly after death without a viewing or memorial service. Cremated remains are returned to the family in a temporary container.
Prepaid Funeral Plans
These plans allow you to lock in funeral prices ahead of time, which can be helpful for budgeting purposes. However, prepaid plans are subject to Medicaid’s asset limits depending on how they are set up. If you have concerns about this, a funeral home provider or legal advisor can help.
Avoid Add-Ons
Many funeral homes offer extra services, such as embalming, which can increase costs. You should be aware that in most cases, embalming is not required if you choose cremation. If you choose to have a viewing ceremony, funeral homes will require embalming as part of preparing the body for viewing. Otherwise, embalming is not a legal requirement except in some situations, such as transporting the body over long distances.
Apply for Financial Aid
There are a few options for financial aid, including from charitable and religious organizations. You may also be eligible for:
- A lump sum death benefit of $255 through the Social Security Administration (SSA)
- Reimbursement of funeral expenses through the Veterans Administration for qualified veterans
- Assistance from FEMA in case death is associated with a natural disaster
For those in extreme poverty, there may be assistance through your county of residence. In Miami-Dade County, for example, there are reduced rates depending on income and assets. Those on Medicaid and meeting certain income thresholds may qualify for cremation as low as $115.
Free Cremation with United Tissue Network (UTN)
Another way to reduce cremation costs in Florida is by donating your body to science through United Tissue Network (UTN).
UTN offers free cremation services to individuals who donate their bodies for medical research and education. This option alleviates the financial burden of cremation and contributes to advancements in medical science.
There is a desperate need for human tissue and bodies to help train future doctors, practice life-saving surgical techniques, and study disease progression to look for cures and improve treatment options. Past donations have led to significant breakthroughs in helping patients with cancer, heart disease, liver and kidney disease, Alzheimer’s, dementia, and more.
By choosing body donation for scientific purposes, you can eliminate the typical costs associated with cremation and help contribute to important healthcare research. UTN is a 501(c)(3) nonprofit accredited by the American Association of Tissue Banks (AATB) and upholds the highest levels of ethics. When death occurs, UTN coordinates with the hospital, hospice center, or funeral home, and individuals, to handle the arrangements. The deceased is transported to a reputable medical research or educational facility at no cost. When research concludes, UTN arranges for cremation at a licensed facility and pays for all the costs. Cremated remains can be disposed of ethically or returned to the family upon request.
FAQs—Frequently Asked Questions About the Cost of Cremation in Florida
How much is cremation in Florida?
The average price of cremation in Florida ranges from $800 to $6,000 or more. The least expensive option is a direct cremation, which averages about $1,400 depending on the services chosen and location.
What does Medicaid allow for funeral expenses?
Medicaid does not cover burial or cremation costs in Florida. Families can set aside funds for cremation, but it must be specifically designated to be excluded from assets in order to qualify for Medicaid.
Can Medicaid recipients use life insurance or prepaid funeral plans?
Life insurance or revocable prepaid funeral plans are considered assets and will be counted to determine eligibility for Medicaid services.
Are there state programs in Florida that help with funeral expenses?
Florida has some programs at the county level that provide financial assistance for low-income families, but they typically cover only the most basic funeral expenses. Funeral home providers can help you connect with the proper state agency, or you can contact your county health department. In most cases, financial aid through the state is only available for those in extreme poverty.
If you have questions about whole body donation or would like more information, contact UTN at (877) 738-6111.
