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Minnesota Department of Human Services Child Care Assistance Program (CCAP) Policy Manual
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9.3 Payments to Providers

ISSUE DATE: 04/2018

Make payments to providers, unless the provider cares for children in the children’s own home. Care provided in the child’s home must be approved by DHS. Payment must be made directly to the family when care is provided in the child’s home. This applies whether the provider is licensed or legal nonlicensed. See Chapter 9.6 (Payments to families).

You must:

  • · Make payments at least monthly.
  • · Make payments within 21 days after receipt of the bill when the provider submits a complete bill.
  • · Provide notice to both the family and provider of the payment amount, and how and when the payment will be made.
  • Pay the provider (or parent, if care in the home is approved) after the provider is authorized by the county or tribe, retroactive to the later of the date that:

  • · Child care was authorized to begin. OR
  • · The family became eligible. See Chapter 4.12 (Date of Eligibility). OR
  • · The family began using a licensed provider OR the family began using a legal nonlicensed provider and the provider completed training required. See Chapter 11.9 (Legal Nonlicensed (LNL) Providers).
  • If a provider has received an authorization of care and been issued a billing form for an eligible family, the billing form must be submitted within 60 days of the last date of service on the bill. You may pay a bill submitted more than 60 days from the last date of service (but less than one year) if the provider shows good cause for the delay. Good cause is defined in your County and Tribal Child Care Fund Plan, and it must include agencyerror.

    If a provider provided care for a time period without receiving a Service Authorization and a billing form for an eligible family, payment may only be made retroactively for a maximum of six months from the date the provider is issued a Service Authorization and billing form.

    Do NOT pay a bill submitted more than a year after the last date of service on the bill.

    Do NOT require participants to pay providers in advance of receiving payment from the child care fund as a condition for receiving child care assistance.

    Ending payment for provider non-compliance

    County and tribal agencies that opt to do so in their County and Tribal Child Care Fund Plan or DHS may end a provider’s authorization, stop payment issued to a provider, or refuse to pay a bill submitted by the provider if the provider violates one or more of the following clauses:

  • · Clause 1: The provider admits to intentionally giving materially false information on the billing forms.
  • · Clause 2: The agency finds by a preponderance of evidence that the provider intentionally gave materially false information on the billing forms and/or attendance records.
  • · Clause 3: The provider violates CCAP rules, until the violations have been corrected
  • · Clause 4: The provider is operating after receipt of a licensing order of suspension or revocation (this occurs when providers are appealing the revocation or suspension) or a final order of conditional license, for as long as the conditional license is in effect.
  • · Clause 5: The provider submits false attendance reports or refuses to provide attendance records upon request.
  • · Clause 6: The provider gives false child care price information.
  • For clauses 3, 5, and 6, the agency may withhold a provider’s authorization or payment for a period of time not to exceed three months beyond the time that the condition above has been corrected.

    Notify your policy specialist at least 10 days prior to closing a provider’s registration or taking any other action to enforce any of these policies, except clause 4.

    Agencies must amend their County and Tribal Child Care Fund Plan prior to implementation.

    To amend your County and Tribal Child Care Fund Plan to implement these policies, complete the Child Care Assistance Program County and Tribal Child Care Plan Amendment DHS-5107A (PDF) and submit it to DHS for approval.

    Employee/employer relationship

    Receipt of federal, state or local funds by a child care provider either directly or through a child care assistance recipient does NOT establish an employee-employer relationship between the provider and the county or state.

    Legal authority

    Minnesota Statutes 119B.09
    Minnesota Statutes 119B.13
    Minnesota Rules 3400.0110
    Minnesota Rules 3400.0185
    Minnesota Statutes 119.125

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