Call them and ask. It would be my guess that you could pay that the day before you submit the application if you wish. 1-800-medicare can answer for you. They cover medicare and medicaid and will let you know if you need any other numbers. I hope someone on site can guarantee you an answer to this. Medicaid is a joint program of the federal and state governments, so I would check for your own state.
As long as you have the paperwork showing you used ur money to buy a prepaid funeral should be no problem. My funeral director said the funeral includes flowers and I think the luncheon. Anything to do with the funeral. Any monies left over reverts back to Medicaid.