The Missouri Senate bill inspired by the National Prearranged Service Scandal that hit 19 States has tried to reform prepayed or Preneed Funerals. There reforms will not affect funeral cost and will not lower the Average cost of a funeral.
Here is why According to KansasCity.com The Regulators are the regulated. Put another way the foxes are guarding the hen house. The holder of Funeral Trust Contracts are in the most Funeral Directors. The Funeral directors will be the Regulators. As stated at KansasCity.com
“The legislation would entrust the state Board of Embalmers and Funeral Directors with new powers to inspect the finances of preneed funeral sellers and take action against unsound companies.”
So the state board of Embalmers and Funeral Directors becomes the Regulator. So funeral directors regulating Funeral Directors makes the regulation pointless.
“Under current law, the sellers of prepaid funerals can take 20 percent of the money in a trust, plus the interest it earns, for their own use. The legislation would limit that to 15 percent and require interest to remain in the trust.”
“Sen. Jack Goodman, R-Mount Vernon, successfully amended the bill Thursday to also allow people to place up to $10,000 in an irrevocable trust for funeral expenses, without it counting against their Medicaid eligibility.
“I don’t think our state policy should be compelling our low-income Missourians into that marketplace” for prepaid funeral contracts, Goodman” said.”
The problem with National Prearranged Services inspired legislation is that under the Old Law the trust fund provider got 20% of the money plus interest. They still get 15% of your Funeral Cost money under the new law.
Under the new law interest is not allowed to be kept. But the trust folks still get 15 % of your money. Too much.
It will not lower the average cost of the funeral.
Funeral Cost /Funeral Industry Blog by Your Funeral Guy