That Mysterious Basic Fee

Once you sit down with a funeral director and he or she hands you the general price list you might see a long list of goods and services.  The funeral home will often list the basic fee as the first item on their general price list. What is this Basic Fee on funeral home general price lists?  Why do funeral homes have a basic fee?  How do these work? A basic fee in a funeral home covers many things, but mostly it covers the cost of running a business which most businesses already include in the prices of their goods and services.  For example, when you go to get a haircut, you do not pay a basic fee plus the price of the haircut. The price listed is the cost of the haircut and the cost of the salon or barber to run the business. You can tip, but you know the price is the price.  In the funeral home, this is not so.  You pay a basic fee, and then you pay for goods and services.
According the Funeral Rule, the funeral home’s basic fee cannot be declined.  We have a right to purchase whatever goods and services we choose, but this fee we may not decline.  The funeral homes wanted a way to secure their interests in dealing with families in grief, and so this basic fee was allowed by the funeral rule to protect the funeral homes’ interest.  The basic fee is the least you can expect to pay at the funeral home you choose.  Basic fees often cover filling out forms and coordinating with cemeteries, etc. This fee can range wildly.  One funeral home might charge $3000, while another might charge $900.  You must shop around to find one that suits your needs and pocket book.  You can order any shroud or coffin you choose, so picking a funeral home should be about how you see they do business.  You might consider what services they might offer and if they fit what your family needs, but shop around to see what the local market offers your family.  You might be surprised at the wide range of prices.