Winter 2017
Confusion and Complaints with Cremation Company
Prompt State Investigation
Prompt State Investigation
The Mortuary Science Section of the Minnesota Department of Health (MDH) is stepping up its investigation of Heritage Cremation Provider, a national online cremation service, following a February 20, 2017 KSTP-TV Eyewitness News report on Heritage's mismanagement of two Minnesota cremations.
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FCA of MN advises: |
In one case, Heritage Cremation Provider had not arranged to pick up the body for three days. When the frantic widow contacted them, they said their facility was full, and that they would have to charge double the original price of $995. The woman finally contacted a local funeral home to pick up her husband's body.
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In the other case, a woman's father wasn't picked up for two days, and then only after putting pressure on Heritage.
According to the Minnesota Department of Health,
"Heritage Cremation Provider is not licensed in Minnesota and acts as an 'online middle man.'"
How Does Heritage Cremation Provider Operate?
It's important to say up front that Heritage Cremation Provider would not be able to operate in Minnesota if local funeral homes were not willing to work with Heritage by providing minimal service for considerably less than what they ordinarily charge.
Say you want to arrange for a cremation. You go online and Google "cremation" and the name of your city or town. Let's say your town is Alexandria, so you Google "Cremation Alexandria MN." Your search results will list the two local funeral homes, but you'll also find a link to Heritage Cremation Provider:
According to the Minnesota Department of Health,
"Heritage Cremation Provider is not licensed in Minnesota and acts as an 'online middle man.'"
How Does Heritage Cremation Provider Operate?
It's important to say up front that Heritage Cremation Provider would not be able to operate in Minnesota if local funeral homes were not willing to work with Heritage by providing minimal service for considerably less than what they ordinarily charge.
Say you want to arrange for a cremation. You go online and Google "cremation" and the name of your city or town. Let's say your town is Alexandria, so you Google "Cremation Alexandria MN." Your search results will list the two local funeral homes, but you'll also find a link to Heritage Cremation Provider:
Click on Alexandria, MN Cremation Services | Affordable Cremation Costs and the Heritage Cremation Provider home page displays the name of your town, Alexandria:
Even if Heritage charges you the high end - $1,395 - it's still a considerable savings over the two Alexandria funeral homes that charge $2,495 and $2,995 for direct cremation.
Given the excessive prices many funeral homes outside the Twin Cities metro area charge for direct cremation, it's easy to understand how a grieving family could be tempted to go with Heritage Cremation Provider. When a family chooses Heritage, all arrangements are conducted electronically, including payment. In turn, Heritage, acting as the "middle man" or broker, contracts with a local funeral home willing to handle the cremation. The local funeral home picks up the body, performs the cremation, and has the cremated remains ready for the family to pick up.
It goes without saying that a local funeral home willing to work with Heritage as the "middle man" is also willing to take a reduced charge for cremation. Revenue is revenue.
FCA of MN Shops Heritage Cremation Provider
In 2015, FCA of MN volunteers posed as cremation "shoppers" wishing to arrange direct cremation in six different towns in out-state Minnesota, and called Heritage Cremation Provider to check on prices.
In one case, we said we wanted to arrange a direct cremation for someone in the Wells MN area. We were quoted a price of $1,295. When we asked which local funeral home would provide the cremation, we were given the name of a funeral home in the area that ordinarily charges $4,445 for direct cremation. $4,445. That's not a misprint.
While it appeared to us that Heritage Cremation was operating legally in the state as a "middle man," we were concerned with statements on the Heritage website that suggest Heritage is more than a "middle man." On the website under Ten Reasons to Choose Heritage Cremation Provider, the following statements give the impression that Heritage is a licensed Minnesota funeral provider, a funeral home.
Here are just a few examples of how Heritage presents itself:
The staff and owners of our Funeral Home are your friends and neighbors.
Our funeral home is owned and managed by licensed funeral directors.
Our funeral home realizes that you, your loved one, and your family need timely quality care that is confidential.
FCA of MN Concerns
FCA of MN found these statements misleading if not deceptive, and reported our concerns about Heritage (which also operates under the name Legacy Cremation Services) to the MDH Mortuary Science Section in March of 2015 after our "mystery shopper" investigation. MDH told us that they were looking into the matter and would get back to us. Two years later, we have yet to have a reply.
Regarding the two recent mismanaged Minnesota cremations, the Mortuary Science Section can only say that their two-year investigation is ongoing. However, it took several other states (Florida, Tennessee, North Carolina and Oregon) a lot less time to levy fines or otherwise bring a judgment against Heritage Cremation Provider.
In the meantime, the Mortuary Science Section has posted a notice- Seeking Cremation Services Online on the Consumer Information page of their website. We think the notice could be strengthened by stating up front that the Mortuary Science Section is undertaking an "open investigation" of Heritage Cremation Provider as a result of numerous consumer complaints.
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IMPORTANT NOTE:
Heritage Cremation Provider, which operates nationally, should not be confused with online cremation arrangement providers that operate locally. Over the past year, two Twin Cities area funeral homes have created low-cost, online cremation arrangement services. Each was featured in a recent FCA of MN Newsletter HERE and HERE. And each is operated by funeral directors licensed by the state of Minnesota.
Heritage Cremation Provider, which operates nationally, should not be confused with online cremation arrangement providers that operate locally. Over the past year, two Twin Cities area funeral homes have created low-cost, online cremation arrangement services. Each was featured in a recent FCA of MN Newsletter HERE and HERE. And each is operated by funeral directors licensed by the state of Minnesota.
Minnesota has a tax on rental caskets;
lawmakers want to bury it.
lawmakers want to bury it.
Minnesota Public Radio (MPR) reported February 10, 2017 that Governor Mark Dayton is proposing a change in the law to do away with the state sales tax on rental caskets.
The rent-a-casket option is for families who choose cremation but opt for a viewing and/or ceremony with the body present, either at the funeral home, at a church, or both, before the cremation takes place.
A rental casket - also called a viewing casket or ceremonial casket - is a casket shell with a trap door at the foot into which a cardboard or plywood insert containing the body is placed for the purpose of holding a viewing. After the viewing and/or ceremony, the insert holding the body is removed from the casket and taken to the crematory. At the crematory, the insert serves as the rigid cremation container required by Minnesota law for the cremation of a dead human body.
The rent-a-casket option is for families who choose cremation but opt for a viewing and/or ceremony with the body present, either at the funeral home, at a church, or both, before the cremation takes place.
A rental casket - also called a viewing casket or ceremonial casket - is a casket shell with a trap door at the foot into which a cardboard or plywood insert containing the body is placed for the purpose of holding a viewing. After the viewing and/or ceremony, the insert holding the body is removed from the casket and taken to the crematory. At the crematory, the insert serves as the rigid cremation container required by Minnesota law for the cremation of a dead human body.
While there's no sales tax on caskets and urns, there is currently a tax on rental caskets.
The tax change has broad support on both sides of the aisle.
What does a rental casket cost?
Like just about every other item on a funeral home's General Price List (GPL), prices vary widely, and so the 6.875% state sales tax can add a significant amount to the final funeral bill.
We spot checked a few local funeral home GPL prices for rental caskets and found a low price of $500 and a high of $1,495.
What are you actually paying for?
You're paying for the "rental" of the funeral home's casket shell, and the purchase of the casket insert.
The tax change has broad support on both sides of the aisle.
What does a rental casket cost?
Like just about every other item on a funeral home's General Price List (GPL), prices vary widely, and so the 6.875% state sales tax can add a significant amount to the final funeral bill.
We spot checked a few local funeral home GPL prices for rental caskets and found a low price of $500 and a high of $1,495.
What are you actually paying for?
You're paying for the "rental" of the funeral home's casket shell, and the purchase of the casket insert.
A funeral home can purchase a rental (ceremonial) casket shell wholesale for well under $1000.
Some funeral directors claim that because of wear and tear on the rental, it can be used only a limited number of times. "Wear and tear" might occur during transport to and from a church, but if the funeral service is held in the funeral home, not so much. "Limited number of times" is a relative term. The funeral home then purchases single-use cardboard inserts for the casket shell from a funeral home supplier. What do the inserts cost? On the left is an ad for Chicago Cremation Supplies' monthly special for February. |
NPR News Investigation:
Funeral Prices Are Still Unclear
Funeral Prices Are Still Unclear
National Public Radio's All Things Considered aired a two-part investigation February 7 & 8, 2017, into pricing and marketing in the funeral business, or death care industry.
NPR spoke with funeral directors, consumers, and regulators. We collected price information from around the country and visited providers. We found a confusing, unhelpful system that seems designed to be impenetrable by average consumers, who must make costly decisions at a time of grief and financial stress.
Listen to or read part one HERE, and part two HERE.
Part one addressed the vast differences in prices from one funeral home to the next, sometimes in funeral homes owned by the same family or corporation. While funeral homes are required by the Federal Trade Commission to itemize 16 standardized goods and services on their price lists, funeral homes are also allowed to bundle select products and services into what are called packages.
A family that's never seen a funeral home General Price List (GPL) may find the long list of prices overwhelming if not confusing, and select a package priced at a flat rate. But the package may includes items they really don't want. Packages purport to save consumers money, but consumers may end up spending more. The CEO of a large funeral conglomerate told his investors: "What we find is when we deliver these packages, people tend to spend more money because they're buying more products and services."
Part two of the investigation focused on the lack of transparency in funeral home pricing. While the Federal Trade Commission (FTC) Funeral Rule, which oversees funeral home pricing, requires funeral homes to give a copy of their GPL to anyone who comes to the funeral home and requests one, and to give prices over the phone. However, funeral homes are not required to post prices on their websites. The Funeral Rule was written in 1984, long before the internet age and is in dire need of updating.
The NPR investigation also found Labor Department statistics showing funeral expenses rising faster than inflation. Since the mid-80s, consumer prices doubled while funeral prices tripled.
Not surprisingly, funeral industry reps were quick to push back on the issue of price differences from one funeral home to the next for identical services. A lawyer for the National Funeral Directors Association (NFDA), the national trade group, said that comparing two direct cremations "is like saying all weddings are the same." This is a faulty analogy we frequently see used on funeral home websites in an attempt to persuade consumers of the funeral home's superior value over its competitors. But a crematory is a crematory.
The two-part NPR investigation is a reminder of how important it is for families and individuals to shop for after death products and services the same way they would any other major purchase: by becoming informed, knowing their rights as consumers, exploring choices, and yes, comparing prices. And to make a plan before it's too late.
Below are six "Funeral Shopping Tips" NPR put together based on their investigation. The following quote is a sober reminder of how important it is to take these shopping tips to heart:
Part one addressed the vast differences in prices from one funeral home to the next, sometimes in funeral homes owned by the same family or corporation. While funeral homes are required by the Federal Trade Commission to itemize 16 standardized goods and services on their price lists, funeral homes are also allowed to bundle select products and services into what are called packages.
A family that's never seen a funeral home General Price List (GPL) may find the long list of prices overwhelming if not confusing, and select a package priced at a flat rate. But the package may includes items they really don't want. Packages purport to save consumers money, but consumers may end up spending more. The CEO of a large funeral conglomerate told his investors: "What we find is when we deliver these packages, people tend to spend more money because they're buying more products and services."
Part two of the investigation focused on the lack of transparency in funeral home pricing. While the Federal Trade Commission (FTC) Funeral Rule, which oversees funeral home pricing, requires funeral homes to give a copy of their GPL to anyone who comes to the funeral home and requests one, and to give prices over the phone. However, funeral homes are not required to post prices on their websites. The Funeral Rule was written in 1984, long before the internet age and is in dire need of updating.
The NPR investigation also found Labor Department statistics showing funeral expenses rising faster than inflation. Since the mid-80s, consumer prices doubled while funeral prices tripled.
Not surprisingly, funeral industry reps were quick to push back on the issue of price differences from one funeral home to the next for identical services. A lawyer for the National Funeral Directors Association (NFDA), the national trade group, said that comparing two direct cremations "is like saying all weddings are the same." This is a faulty analogy we frequently see used on funeral home websites in an attempt to persuade consumers of the funeral home's superior value over its competitors. But a crematory is a crematory.
The two-part NPR investigation is a reminder of how important it is for families and individuals to shop for after death products and services the same way they would any other major purchase: by becoming informed, knowing their rights as consumers, exploring choices, and yes, comparing prices. And to make a plan before it's too late.
Below are six "Funeral Shopping Tips" NPR put together based on their investigation. The following quote is a sober reminder of how important it is to take these shopping tips to heart:
“Such purchases are often made under circumstances that reduce the ability of consumers to make careful, informed decisions due to the pending or actual death of a family member or friend. |
Funeral Shopping Tips
As a consumer, you're likely at a significant disadvantage, and it's not just because of your emotions. Prices are seldom online and it's hard to know what to ask. Based on NPR's reporting and tips from Funeral Consumers Alliance and the Federal Trade Commission, here are ways you can help level the playing field:
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Oak Hill Cemetery Update
The Board of Directors of historic Oak Hill Cemetery in south Minneapolis has decided to no longer allow whole body burial without a vault. This means, in effect, that there is one less option for natural (green) burial in the Twin Cities area.
In an email reply to FCA of MN, an Oak Hill representative wrote:
We now have new management and some sort of vault or grave liner is required. For cremations, we do not require an urn vault, but you can choose to use one if desired. Typically just an urn or box is suitable for cremation burials. A Price List is posted online. |
Coming Soon: 2017 Direct Cremation Price Survey
FCA of MN is in the process of updating our 2015 Direct Cremation Price Survey. We'll publish the 2017 updated survey in conjunction with our Spring 2017 Newsletter, around May 22.
While most prices have stayed the same, there are a couple of new kids on the block, which means a couple of providers at the high end will fall off the list.
Along with the updated survey, we'll offer a few tips on understanding additional charges that may appear on the final bill. For example, some funeral homes charge a fee for removal of a body after hours or on weekends. Others charge extra if a second person is needed for transporting the body when death occurs in a home or apartment.
We'll also clarify questions we've been asked about the alternative cremation container - the rigid container in which the body is placed before entering the cremation retort. And we'll provide you information that will help you if you plan to use your own cremation remains container - aka, the urn.
While most prices have stayed the same, there are a couple of new kids on the block, which means a couple of providers at the high end will fall off the list.
Along with the updated survey, we'll offer a few tips on understanding additional charges that may appear on the final bill. For example, some funeral homes charge a fee for removal of a body after hours or on weekends. Others charge extra if a second person is needed for transporting the body when death occurs in a home or apartment.
We'll also clarify questions we've been asked about the alternative cremation container - the rigid container in which the body is placed before entering the cremation retort. And we'll provide you information that will help you if you plan to use your own cremation remains container - aka, the urn.
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Invite an FCA of MN Speaker
An FCA of MN representative was one of 4 speakers at a recent workshop for residents of Episcopal Homes in St. Paul. Several grateful residents told us something we hear a lot: "We didn't know an organization like FCA of MN existed."
Help us spread the word. We're available to talk to your group about the wide range of after death choices. Your speaker will address: ▪ after-death planning before you die ▪ how to reduce after-death costs ▪ the environment and after-death choices |
FCA of MN will provide a speaker for your group free of charge. However, we'll gladly accept a donation in any amount.
NEW: Would your faith community like to take a more active role in caring for a member after death? We're available to meet with groups small and large, or individuals, to help you get started.
Go to Contact Us to arrange a speaker.
NEW: Would your faith community like to take a more active role in caring for a member after death? We're available to meet with groups small and large, or individuals, to help you get started.
Go to Contact Us to arrange a speaker.
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