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Medicare & Medicaid Benefits After Death

By: Leigh Morgan • Edited by: Ani Lahiri • Subject Matter Expert Reviewed by: Jennifer Wills • 11 cited sources • Updated Oct 17, 2024

When a loved one passes away, you have happy memories of your time together, but you also mourn their loss. Grieving is emotionally difficult, but for close family members, there’s also the challenge of dealing with practical matters in the wake of a loved one’s death. If your loved one had benefits, you’ll need to manage their Medicare or Medicaid benefits after death.

Key Takeaways

• It’s important to cancel Medicare and Medicaid benefits after a death.
• Every state administers its own Medicaid program, so the correct procedure for canceling Medicaid benefits depends on where your loved one lived.
• Under the Medicaid estate recovery program, Medicaid may be able to take some of your loved one’s assets to cover the cost of the benefits they received before they passed.
• It’s important to seek health advice from a qualified attorney when settling a loved one’s estate.

How to Notify Medicare After the Death of a Loved One

Although the Centers for Medicare and Medicaid Services administers the Medicare program, the Social Security Administration (SSA) manages enrollment and premium payments^[1]. Once a beneficiary passes, you must notify the SSA right away. If your loved one had a Medicare Advantage Plan, you’ll also have to contact a private insurance company to cancel their benefits.

Here’s what you need to do to manage a loved one’s Medicare benefits after death.

Step 1: Gather Required Documentation

If you don’t have your loved one’s SSN memorized, make sure you have their Social Security card before you contact the SSA. You’ll also need the member ID card for their Medicare Advantage Plan, if they had one.

Step 2: Contact the Social Security Administration

The SSA doesn’t accept death reports via email, so you can either visit your local Social Security office or call (800) 772-1213 to notify Medicare of a death.

Step 3: Cancel Specific Plans if Necessary

Some beneficiaries have Medicare Advantage instead of Original Medicare. The main difference between the two is that private insurance companies provide Advantage^[2]. If your loved one had this type of plan, call the number on the back of their member ID card to cancel the coverage.

What Happens to Medicare Benefits When You Die?

In some cases, Medicare refunds excess premiums paid by a deceased beneficiary. If Medicare owes your loved one money, CMS will send the amount due to the legal representative of their estate^[3]. To get the refund, file Form SSA-1724 (“Claim for Amounts Due in the Case of Deceased Beneficiary”)^[4].

Medicare also continues to pay claims for dates of service prior to a beneficiary’s death. For example, if your loved one went to the doctor on June 1, 2024, and passed away on June 15, 2024, Medicare would cover the doctor visit as long as the provider submitted a claim within 1 calendar year of the date of service^[5].

If Medicare overpaid a provider for your loved one’s care, the provider is responsible for returning the overpayment^[6].

Are There Medicare Survivor Benefits?

Medicare doesn’t offer survivor benefits. However, if you were married to the deceased beneficiary, you may qualify for premium-free Part A Medicare benefits under their work record. To be eligible, you must have been married for at least 9 months prior to their death^[7]. You must also be single when you apply for benefits.

How to Notify Medicaid After the Death of a Loved One

The federal government provides some of the funding for Medicaid, but each state administers its own program, so cancellation procedures vary. Therefore, you need to contact the Medicaid program in your loved one’s state to cancel their Medicaid benefits after death.

Step 1: Gather Required Documentation

Locate your loved one’s Medicaid card. You’ll need the member ID when you contact Medicaid. It’s also helpful to have their death certificate on hand in case you need to provide their date of death, county, or other relevant information.

You can report the death of your loved one to the Social Security Administration without a death certificate to begin the process of canceling their benefits and payments. However, you will need to provide the death certificate later to complete the report.

Jennifer Wills, Former Licensed Financial Coach

Step 2: Contact the State Medicaid Office

Use the Medicaid.gov website to find the Medicaid program in your loved one’s state. Call the telephone number listed in the directory to notify Medicaid of a death.

What Happens to Medicaid Benefits When You Die?

After your loved one passes, you may continue to receive bills from their healthcare providers. Medicaid will pay valid claims up until the date of the beneficiary’s death. However, you may have to pay co-pays or other out-of-pocket costs out of your loved one’s estate. If Medicaid made an overpayment to a provider, it’s the provider’s responsibility to return it^[8].

Understanding Medicaid Estate Recovery

Medicaid estate recovery allows state Medicaid programs to recoup costs from a deceased person’s estate for services provided after the age of 55^[9]. This includes home and community-based services, nursing facility services, and hospital or prescription fees related to those services.

Estate recovery doesn’t apply to benefits provided to beneficiaries who qualified for a Medicare Savings Program (MSP)^[10]. Certain assets are subject to the estate recovery program if your loved one wasn’t enrolled in an MSP before their death. This includes real estate, jewelry, collectibles, and other assets.

However, a state Medicaid program can’t use estate recovery under the following circumstances:

• The deceased individual has a surviving spouse.
• A sibling lived in the home for at least 1 year immediately before the Medicaid beneficiary went into a nursing home or other care facility^[11]. The sibling must have an equity interest in the home, which means they shared ownership with the deceased individual. They must also continue residing in the home after the Medicaid beneficiary’s admission to a care facility to qualify for this exemption.
• An adult child lived in the home for at least 2 years before the Medicaid beneficiary went into a care facility and continued living there after the admission. The child must be able to prove they provided care that may have delayed the beneficiary’s transition to a care facility.
• The deceased individual has a surviving child who is under the age of 21 or meets the definition of disability established by the Supplemental Security Income program.

Estate recovery is complex, so consult a legal professional to understand your rights and obligations. If possible, meet with a Certified Elder Law attorney. An attorney must have at least 5 years of legal experience and pass a rigorous examination to use this designation. CELAs also have extensive knowledge of the Medicaid estate recovery rules where they practice.

Are There Medicaid Survivor Benefits?

State Medicaid doesn’t provide survivor benefits, but if there is a surviving spouse, a surviving child under the age of 21, or a surviving disabled child of any age, then the estate may be protected from recovery. This is the process in which Medicaid recovers assets from the estate of the deceased to recoup some of the cost of care Medicaid has paid. 

Reduce Stress During a Challenging Time

It’s difficult enough to go through the grieving process, but if your loved one had Medicare or Medicaid, you also have to worry about managing those benefits. Knowing and abiding by your state’s benefit policies can save you undue stress of overpayment. The financial burden of having to repay these benefits is often the last thing you’ll want to expose yourself to in an already trying time. 

Handle important matters like these with care to avoid unexpected expenses. If you need guidance or clarification of the requirements, reach out to a qualified attorney or tax professional.

Written by Leigh Morgan

Leigh Morris has 15 years of experience developing high-converting content for the Web. She enjoys writing about health, law, finance, marketing and careers. Hope has a bachelor's degree in business administration (human resource management) and a master's degree in management and leadership.

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Edited by Ani Lahiri

Anitra Lahiri earned her bachelor's degree in English from NYU and holds certifications in Yin Yoga, Prenatal Yoga, Reiki I and II, Natural Health, and SMART Recovery Facilitator Training. She is also completing her 500-hour hatha yoga teacher training in December 2024. By leading addiction recovery meetings, teaching yoga, and writing about wellness, Anitra helps people all over the world bounce back from addiction, incarceration, or traumatic life events. Her passion is encouraging people to tap into their inner wisdom. https://anitralahiri.com/

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Subject Matter Expert Jennifer Wills

Jennifer Wills is a finance SME with 12 years of experience as a licensed financial coach. She used her expertise and insurance and securities licensing to create customized plans to help families become properly protected, debt-free, and financially independent. When the time came for a career change, Jennifer used her skills and experience to build a freelance writing business. She started writing blog posts for an accounting and finance staffing agency and later wrote articles for Investopedia. Today, Jennifer writes content for clients in 75+ industries. In her downtime, she enjoys spending time with friends and traveling.