Give the State Board credit for attempting to clarify how insurance assignments must be handled for compliance with Missouri laws. 

For several months, the State Board has sought clarifications from MO HealthNet regarding spend-downs. On May 12th, the Board emailed to the industry new MO HealthNet guidelines for insurance assignments. One day later, the legislature

A “Spend Down” is the transaction where a person seeking public assistance transfers money or insurance to a funeral home to avoid having the “asset” count as a resource. It is a commonly held perception that the Spend Down accounts for many preneed contract purchases. But should all Spend Downs trigger the state preneed law

What happens when the family opts for a cremation at the time of need when the preneed contract provides for a traditional funeral?  If the preneed contract was purchased in a spend down situation, the funeral director and the family may be caught in a Catch -22.  Many states’ laws preclude the refund of the funds to the family. 

Missouri law