PROPOSED RULEMAKING

DEPARTMENT OF PUBLIC WELFARE

[55 PA. CODE CH. 285]

Payment for Burial

[34 Pa.B. 1774]

   The Department of Public Welfare (Department), under the authority of sections 201(2) and 403(b) of the Public Welfare Code (62 P. S. §§ 201(2) and 403(b)), proposes to amend Chapter 285 (relating to payment for burial) to read as set forth in Annex A.

Purpose

   The purpose of this proposed rulemaking is to codify the notice of rule change (NORC) published at 30 Pa.B. 2957 (June 10, 2000). The NORC increased the payment to funeral directors for burial services to $750 for all eligible individuals. Prior to the NORC, payments were $350 for an individual 10 years of age or older, $250 for an individual under 10 years of age and $85 for a stillborn child. The NORC also increased the maximum level of contributions made by an agency or individual from $180 to $750.

   Additionally, the proposed rulemaking eliminates the separation of payments for goods and services and for interment and removes the requirement for a wooden outer case to provide a choice in determining the type of outer case.

Need for Proposed Rulemaking

   The maximum allowance for burial services in Chapter 285 is inadequate and does not reflect the prevailing costs to provide basic burial services. The costs for transportation and preparation of the body, memorial services, gratuities to clergy and cemetery procedures have increased considerably in the last 25 years. Regulations governing maximum payment amounts for burial were adopted at 7 Pa.B. 2180 (August 5, 1977). The proposed rulemaking is necessary to update the regulations to provide a more adequate payment for basic burial services.

   The proposed rulemaking to eliminate the separation of payment amounts and the requirement for a wooden outer case is necessary to allow an individual arranging the burial services and the funeral director more flexibility and choice in planning for goods and burial services.

Requirements

   Following is a summary of specific proposed rulemaking:

   The Department proposes to eliminate the restriction to provide a wooden outer case in § 285.3(c)(1)(ii) (relating to requirements). The Pennsylvania Funeral Director's Association indicates that a wooden outer case is not necessary and may be more expensive than an outer case of other materials, such as metal. Removing this restriction allows an individual arranging the burial services and the funeral director more flexibility and choice in planning for burial goods and services.

   The Department proposes to amend § 285.3(d) to increase the maximum payment to funeral directors to $750 for burial goods and services and interment for a deceased individual of any age who was receiving, or was eligible for and authorized to receive, cash assistance at the time of death. Under current regulations, the maximum payment to funeral directors is $350 for an individual 10 years of age or older, $250 for an individual under 10 years of age and $85 for a stillborn child. The Department also proposes to eliminate the separation of payment amounts for goods and services and for interment. The proposed rulemaking allows greater flexibility and choice in planning for burial goods and services.

   The Department proposes to amend § 285.3(e)(1)(i) to increase the maximum level of contributions made by an agency or individual from $180 to $750. The Department also proposes to delete the requirements for interment charges, cave-proof containers and transportation since the payment for burial goods and services is now an unrestricted payment of $750.

   The Department proposes that contributions in excess of $750 will reduce the Department's payment by the difference between $750 and the value of the contribution. The proposed amendment to § 285.3(e)(1)(ii) is necessary for consistency in the allowable amounts for contributions as proposed in § 285.3(e)(1)(i).

Affected Individuals and Organizations

   The proposed rulemaking affects an individual acting on behalf of a deceased individual of any age who was eligible and authorized for or was receiving cash assistance at the time of death. The proposed rulemaking allows an individual arranging the burial more flexibility and choice in planning for burial goods and services.

   Funeral directors who are enrolled providers are the beneficiaries of increased burial payments. The proposed rulemaking allows increased payments to funeral directors that will more adequately cover the actual cost of burial goods and services.

Accomplishments and Benefits

   The proposed rulemaking will benefit individuals acting on behalf of a deceased individual by allowing more flexibility and choice in the planning for burial goods and services.

   The proposed rulemaking will benefit funeral directors by providing for increased payments that will more adequately cover the actual costs of burial goods and services. The proposed rulemaking will reduce the uncompensated costs for burial goods and services that are incurred by funeral directors.

Fiscal Impact

Public Sector

   Commonwealth: The Department estimates an increase in annual expenditures of $1.116 million. This amount represents the increase in payments to funeral directors for burial goods and services rendered at the new maximum rate of $750.

   Political Subdivisions: There will be no costs or savings for political subdivisions.

Private Sector

   The proposed rulemaking will reduce the uncompensated costs for services that are incurred by funeral directors.

   General Public: There will be no costs or savings for the general public.

Paperwork Requirements

   This proposed rulemaking does not increase paperwork requirements.

Effective Date

   The amendments to § 285.3(d) regarding the maximum payment amount for all eligible individuals and § 285.3(e) regarding resources that do not reduce payment are effective retroactive to July 3, 2000, to coincide with the effective date of the NORC.

   The proposed amendments to § 285.3(c)(1)(ii) regarding standard outer case and § 285.3(d) regarding separation of payments for goods and services and for interment are effective upon publication in the Pennsylvania Bulletin as a final-form rulemaking.

Sunset Date

   There is no sunset date. The Department will review compliance with the regulation through its quality control and corrective action review process, which is monitored by the Federal Department of Health and Human Services.

Regulatory Review

   Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on March 23, 2004, the Department submitted a copy of this proposed rulemaking and a copy of a Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House Committee on Health and Human Services and the Senate Committee on Public Health and Welfare. A copy of this material is available to the public upon request.

   Under section 5(g) of the Regulatory Review Act, IRRC may convey any comments, recommendations or objections to the proposed rulemaking within 30 days of the close of the public comment period. The comments, recommendations or objections shall specify the regulatory review criteria which have not been met. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the rulemaking, by the Department, the General Assembly and the Governor of comments, recommendations or objections raised.

Public Comment

   Interested persons are invited to submit written comments, suggestions or objections regarding this proposed rulemaking within 30 calendar days after the date of publication of this notice in the Pennsylvania Bulletin to the Department of Public Welfare, Office of Income Maintenance, Edward J. Zogby, Director, Bureau of Policy, Room 431 Health and Welfare Building, Harrisburg, PA 17120, (717) 787-4081. Comments received within 30 calendar days will be reviewed and considered in the preparation of the final-form rulemaking. Comments received after the 30-day comment period will be considered for subsequent revisions of the regulation.

   Persons with a disability may use the AT&T Relay Service, (800) 654-5984 (TDD users) or (800) 654-5988 (voice users).

ESTELLE B. RICHMAN,   
Secretary

   Fiscal Note: 14-481. (1) General Fund; (2) Implementing Year 2003-04 is $1,116,000; (3) 1st Succeeding Year 2004-05 is $1,116,000; 2nd Succeeding Year 2005-06 is $1,116,000; 3rd Succeeding Year 2006-07 is $1,116,000; 4th Succeeding Year 2007-08 is $1,116,000; 5th Succeeding Year 2008-09 is $1,116,000; (4) 2002-03 Program--$668,832,000; 2001-02 Program--$705,750,000; 2000-01 Program--$668,586,000; (7) Medical Assistance--Outpatient; (8) recommends adoption. This regulatory action codifies existing policy. The payment rates for burial services have been in effect since the beginning of Fiscal Year 2000-01.

Annex A

TITLE 55.  PUBLIC WELFARE

PART II.  PUBLIC ASSISTANCE MANUAL

Subpart I.  OTHER INCOME MAINTENANCE PROGRAMS

CHAPTER 285.  PAYMENT FOR BURIAL

GENERAL PROVISIONS

§ 285.3.  Requirements.

*      *      *      *      *

   (c)  Standards for burial. The standards for burial are as follows:

   (1)  Payment of goods and services, and interment. The minimum requirements for goods and services, unless the remains are cremated, are as follows:

*      *      *      *      *

   (ii)  Standard [wooden] outer case, unless a cave-proof container is contributed, or unless an outer case is contrary to custom or cemetery regulations.

*      *      *      *      *

   (d)  Department payment schedule. The Department's total payment for burial[, if there are no resources to reduce the payment, are as follows:] is $750 for goods and services and for interment charges. The Department will make a total payment not to exceed $750 for a deceased individual of any age who was receiving or was eligible and authorized to receive cash assistance at the time of death.

[Client	Description	Amount (in dollars)
Adult or child 10 years of age	Good and services Interment, actual charges but not over	280     70 350 maximum
Child under 10 years of age	Goods and services Interment, actual charges but not over	180     70 250 maximum
Child born dead	Goods and services Interment, actual charges but not over	50     35   85 maximum]

   (e)  Resources that do not reduce Department payment. If a person or agency makes small contributions, such as articles of clothing, the use of cars to carry the funeral party, newspaper advertising, flowers, religious services, and the like, they are not considered in determining the amount of the Department payment.

   (1)  Resources for special burial costs. Resources for special burial costs are as follows:

   (i)  The Department burial payments are based on a minimum standard for burial. To recognize certain circumstances that the minimum standard does not include, the following resources do not reduce the Department payment: contributions in money, goods or services by an agency or person, including legally responsible relatives, [for clauses (A), (B) and (C),] up to a total of [$180 for any or all of the following:] $750.

   [(A)  The amount by which the actual charges for interment exceed $70, or $35 for a child born dead, in the cemetery chosen by the person requesting burial payment.

   (B)  The charge for a cave-proof container to meet the minimum standards of a cemetery that requires that type of container.

   (C)  The charge for transporting the remains for the number of miles over 15. This charge shall be no more than the prevailing local rate for hearse hire, or charge for rail transportation, whichever is used.]

   (ii)  If agencies or persons, or both, make total contributions of [over $180 for subparagraph (i)(A), (B) and (C)] more than $750, the difference between [$180] $750 and the value of the actual contributions reduces the Department payment.

*      *      *      *      *

[Pa.B. Doc. No. 04-554. Filed for public inspection April 2, 2004, 9:00 a.m.]

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