Does anyone know the limit Medicaid allows for prepaid funeral arrangements?

Up to a certain amount, prepaid funeral expenses is an exempt asset -- it does not count toward the asset allowance. Amounts over that amount would count toward the asset limit.

Here is a pretty good basic explanation of the concept: http://www.mytributeplanner.com/medicaid

And here is an AgingCare article on the subject:
https://www.agingcare.com/articles/what-you-need-to-know-about-advance-funeral-planning-medicaid-159766.htm

The exact amount depends on state rules and also how the money is set aside. Contact your state Medicaid office for that information. They may be able to direct you to a website or to send you information.

It's considered an asset, so it's based on the resident state's rules. No different than if you owned property in another state.

What if the person lives in one state and is to be buried in another state with different requirements? Would the state of residence govern only a part of the plans?

Since it depends on the average costs in your area, it will vary from state to state.

susane1964, each state has its own Medicaid rules. You can call your state's Medicaid office to find out it's limit on pre-paid funerals.