2 General Program Requirements

2.1 WFCAP Application Form

2.2 Who May Apply for WFCAP Payments

2.3 General Price List

2.4 Total Expenses

2.4.1 Reporting Total Funeral Expenses

2.4.2 Reporting Total Cemetery/Crematory Expenses

2.5 Determining Qualified Payments

2.5.1 Who Provides the Service

2.5.2 Required but Not Provided

2.5.3 Required and Provided

2.6 Payment of Funeral Expenses

2.6.1 Total Funeral Expense Cap

2.6.2 Funeral Expense Payment Limit

2.6.3 Cash Advances

2.6.3.1 Third Party Cash Advances

2.6.3.2 Cemetery/Crematory Cash Advances

2.7 Payment of Cemetery/Crematory Expenses

2.7.1 Total Cemetery/Crematory Expense Cap

2.7.2 Cemetery/Crematory Expense Payment Limits

2.8 Special Circumstances

2.9 County Fees

2.10 Life Insurance

2.11 Time Limit

2.11.1 Time Limit for Application Adjustments

2.1 WFCAP Application Form

Total funeral, cemetery, and crematory expenses Total funeral and cemetery expenses are defined as actual charges, not estimates, for all funeral and cemetery/crematory goods/services provided (i.e., sold) by the funeral home, cemetery or crematorium, whether provided before or after death. Note: Throughout this manual, provided means sold. must be reported by the funeral home, cemetery, or crematorium using the most recently published WFCAP Application, F-10141. Only this form is accepted. WFCAP applications not submitted on the proper form will be denied payment.

Funeral homes, cemeteries, and crematories are required to submit a combined application form covering both funeral and cemetery/crematory expenses for a decedent when requesting a qualified payment (reference Section 2.6 Qualified Payments).

Note: If a funeral home requesting a qualified payment does not submit a combined application form covering both funeral and cemetery/crematory expenses, the application will be denied.

2.2 Who May Apply for WFCAP Payments

Only funeral homes, cemeteries, and crematoriums may submit a WFCAP application. These entities are referred to as service providers in this manual. Family members and other non-providers cannot submit a WFCAP application (see Section 5.1 Denying or Reducing Payments).

2.3 General Price List

It is WFCAP’s policy to have an updated general price list (GPL) on file every 12 months in order to accurately verify the goods and services of providers. WFCAP understands effective dates for goods and services on the GPL may carry over from year to year, but also understands providers may change those goods and services at any time. Since WFCAP is not privy to providers’ internal policy changes in regard to the GPL, we request an updated GPL when necessary if the GPL we have on file is outdated by over a year or does not contain pertinent information to verify goods and services.

Note: If a package price listed on the Final Itemized Funeral Home Billing Statement with Payment Sources does not match the package price listed on the GPL, a written explanation explaining the discrepancy is required.

2.4 Total Expenses

Total funeral, cemetery, and crematory expenses are defined as actual goods and services provided prior to any price reductions or payments. Estimates (the Statement of Funeral Goods and Services Selected) will not be considered and will delay the application review process.

Note 1: Throughout this manual, provided means sold.

Note 2: Payments will not be approved or issued if the goods or services have not yet been provided.

Note 3: Any price reductions or mark downs will be counted toward the total expenses.

Note 4: Federal Trade Commission (FTC) - Government Agencies:

As stated in the FTC Handbook:

Some funeral providers enter into agreements with government agencies to provide funeral arrangements for indigent persons (or other persons entitled to a government benefit). When entering into such arrangements, you must follow all Rule requirements, including giving price lists to the government agent at the time you make or discuss such arrangements. You can add the prices for these special situations to your regular price list or prepare a separate price list for these arrangements. If you prepare a separate price list, you need not make it available to anyone except the government agency or persons who qualify for the special arrangements.

Some government agencies choose to contract for funeral arrangements on a package basis. You can offer funeral arrangements to anyone — including a government agency — on a package basis, as long as the funeral packages are offered in addition to, not in place of, itemized prices.

When qualifying persons inquire about these package funeral arrangements, you still should provide the GPL, with itemized prices and disclosures, and comply with all other Rule requirements at this time.

Note: You should check your state laws to determine whether arrangements handled as part of an agreement with a government agency can be supplemented or modified by qualifying persons.

Source: www.ftc.gov/system/files/documents/plain-language/565a-complying-with-funeral-rule_2020_march_508.pdf

2.4.1 Reporting Total Funeral Expenses

Whether goods or services are provided before or after death, the funeral home must report the total actual charges associated with the goods or services that it or other funeral homes provide (refer to examples 1 and 2 below).

The funeral home must also report total actual charges associated with goods or services provided by others, but for which the funeral home pays. Such cash advances Cash advances are goods or services obtained by a funeral home from a third party that are paid for by the funeral home on behalf of and subject to reimbursement from a person purchasing services from the funeral home. with a total over the amount of $500 are counted toward the total funeral expense cap and must be clearly identified as third party cash advances on the Final Itemized Funeral Home Statement with Payment Sources (refer to examples 1 and 2 below). Cash advances may include, but are not limited to: flowers, obituaries, clergy, music/choir/soloist, meals, death certificates, pallbearers, church aides/helpers, videos/DVDs/picture boards, body shipping containers, vaults, and shipping charges for cremains.

Exception: WFCAP will allow for $500 in third party cash advances that will not count toward the total funeral expense cap. However, verification for all third party cash advances is required.

If more than one funeral home provides goods or services and submits separate applications, the combined total funeral expenses are subject to the total funeral expense cap of $4,500.

2.4.2 Reporting Total Cemetery/Crematory Expenses

Cemeteries and crematories must report total actual expenses for the goods or services they provide, whether those goods or services are provided before or after death (refer to examples 3 and 4).

Note: Burial plots must be accounted for on the Final Itemized Cemetery Statement with Payment Sources, as well as in Section 8 of the WFCAP application. This also includes burial plots that were gifted or donated. If a burial plot is not accounted for, the application will be denied.

2.5 Determining Qualified Payments

Accurate payment depends on knowing whether an expense is a funeral home, cemetery, or crematory expense.

• Funeral home expenses are subject to the total funeral expense cap (including third party cash advances with the exception of $500) or $4,500 and payment limit of $1,500.

• Cemetery/crematory expenses are subject to the total cemetery/crematory expense cap of $3,500 and payment limit of $1,000.

If the funeral home sets up a crematory as a standalone business, then the goods or services provided by the crematory may be counted as a cemetery/crematory expense. To be considered a standalone business eligible to receive a cemetery/crematory payment, the crematory must have a different tax ID number than any funeral home.

Note: This standalone requirement only pertains to funeral homes looking to receive payments for both funeral expenses and cremation expenses. In this instance, WFCAP will allow the funeral home the $4,500 funeral expense cap and the $3,500 cemetery/crematory expense cap.

2.5.1 Who Provides the Service

If the good or service is provided by a funeral home (including cremation), the expense is considered a funeral expense. If the good or service is provided by a cemetery or a standalone crematory, the expense is considered a cemetery/crematory expense.

Note: To be considered a standalone crematory, the crematory must meet the definition as stated by the WFCAP Program.

2.5.2 Required but Not Provided

Some cemeteries cannot provide certain goods or services but require them. Those cemeteries that cannot provide the required goods and services rely on a funeral home to provide those goods or services. Only under this circumstance can the goods or services be counted as a cemetery expense and be considered a qualified payment, even though the goods or services are provided by a funeral home (refer to example 5 below). The funeral home should document this circumstance on the Final Itemized Funeral Home Billing Statement with Payment Sources and complete the Qualified Payment Form for the Cemetery Required but not Provided (attached to the WFCAP application).

Note: If the Qualified Payment Form is not completed, signed, and dated by the funeral home, cemetery, and executor or family representative, the WFCAP application will be denied.

2.5.3 Required and Provided

There are cemeteries that can provide certain goods or services that they require. Under this circumstance, the funeral home is not eligible for a qualified payment and cannot utilize a third party vendor for such goods or services. In addition, the providers would be required to submit a joint application.

Note: If WFCAP does not receive a joint application (funeral home and cemetery), the application will be denied.

2.6 Payment of Funeral Expenses

2.6.1 Total Funeral Expense Cap

If the total funeral expenses exceed $4,500 (including third party cash advances after $500), payment will not be approved for any of the funeral expenses unless special circumstances have been approved (reference Section 2.9 Special Circumstances).

2.6.2 Funeral Expense Payment Limit

WFCAP payment for funeral expenses is limited to the lesser of either:

• $1,500.

• Any amount for which the estate of the deceased is insufficient to pay and that is not paid for by other sources. This includes, but is not limited to: burial trusts, burial insurance, estate assets, and fundraisers.

2.6.3 Cash Advances

2.6.3.1 Third Party Cash Advances

Third party cash advances are goods or services obtained by a funeral home from a third party. Third party cash advances are counted toward the total funeral expense limit after $500. Cash advances may include, but are not limited to: flowers, obituaries, clergy, music/choir/soloist, meals, death certificates, pallbearers, church aides/helpers, videos/DVDs/picture boards, body shipping containers, vaults, and shipping charges for cremains.

Exception: Third party cash advances up until the amount of $500 are not counted toward the total funeral expense cap. Third party cash advances beyond $500 will be counted toward the total funeral expense cap. Verification for all third party cash advances are required.

Note: A receipt from the vendor is required for all third party cash advances listed on the Final Itemized Funeral Home Billing Statement with Payment Sources. If a receipt is not available, a written statement from the third party vendor will be acceptable. The written statement must include the third party’s name and phone number, along with the purchase date and amount. In addition, the third party must sign and date the statement.

2.6.3.2 Cemetery/Crematory Cash Advances

Cemetery/crematory cash advances are goods or services obtained by a funeral home from a cemetery and/or crematory. These expenses are provided by the cemetery and/or crematory, but paid for by the funeral home (refer to example 6).

For cash advances from the funeral home to the cemetery and/or crematory to be considered for WFCAP payment, the goods or services must be provided by the cemetery and/or crematory, rendered, and paid in full (reference Section 3.2.2 Crematory Cash Advances (Provider to Provider)).

Note: The cemetery and/or crematory must provide the goods or service for the cash advance to be considered provider to provider.

Note 1: The funeral home must check the box on the application for cash advance (refer to Sections 3, 4 and 8 of the application) and provide the service provider's initials.

Note 2: Cash advances made by the funeral home for cemetery and/or crematory expenses must still be counted toward the $3,500 cemetery/crematory expense cap.

2.7 Payment of Cemetery/Crematory Expenses

2.7.1 Total Cemetery/Crematory Expense Cap

If the total cemetery/crematory expenses exceed $3,500, payment will not be approved for any of the cemetery/crematory expenses.

2.7.2 Cemetery/Crematory Expense Payment Limits

WFCAP payment for cemetery or crematory expenses is limited to the lesser of either:

• $1,000.

• Any amount for which the estate of the deceased is insufficient to pay and which is not paid by other sources. This includes, but is not limited to: burial trusts, burial insurance, estate assets, and fundraisers.

2.8 Special Circumstances

Under special circumstances, the funeral expense cap for total funeral expenses, as well as the funeral payment limit, may be exceeded. It will be determined on an individual case basis whether special circumstances exist to justify exceeding these limits.

Note: Payment for approved special circumstances will be capped at $500, and are subject to WFCAP approval.

Unless it is determined that special circumstances exist:

• Payment will never be approved when the total expense caps have been exceeded.

• Payment will never be approved above the specified payment limits.

The service provider must document special circumstances and submit verifying documentation with the application.

Note: The provider must provide a written statement regarding the special circumstances and the receipt(s) for the good(s) or service(s) provided.

2.9 County Fees

Under Wis. State § 49.785 (1r), service providers receiving WFCAP payments are exempt from paying fees for services rendered by a coroner or medical examiner. This includes fees assessed for the signing of a death certificate by a coroner or medical examiner. Service providers are also exempt from paying fees assessed by a county related to transportation services.

These fees will be denied and not applied to the funeral or cemetery/crematory expense caps. WFCAP's notice of decision approving payment is proof that the funeral home, cemetery, and/or crematory will receive payment.

2.10 Life Insurance

If a decedent is named as the insured on a life insurance policy, and the death benefit of the policy is more than $3,000, the life insurance benefit amount that exceeds $3,000 must be used to pay for the decedent’s funeral, cemetery, and/or cremation expenses. WFCAP payment is available only for remaining unmet amounts. A service provider's payment amount will be reduced by one dollar for every dollar by which the death benefit of the policy exceeds $3,000 (reference Section 4.1 Life Insurance Reduction).

This policy applies to any life insurance policy issued on or after October 3, 2016, where the decedent is named as the insured, regardless of who owns the life insurance policy or who is named as the beneficiary. With the assistance of the executor or family representative, service providers are expected to disclose on the application all life insurance policies insuring the decedent’s life, and submit verifying documentation (reference Section 3.3 Verification of Life Insurance) for these policies.

2.11 Time Limit

A WFCAP application must be received no later than the end of the 12th calendar month following the month of the decedent's date of death. An application received after that time period will be denied.

2.11.1 Time Limit for Application Adjustments

Adjustments to the WFCAP application must be made within 12 months of the date of death. Application adjustments are subject to existing payment policy.