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Minnesota Department of Human Services Child Care Assistance Program (CCAP) Policy Manual
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9.9 Determination of Payment Amounts

ISSUE DATE: 04/2016

The payment amount is the provider’s rate, not to exceed the CCAP maximum rate, minus the family copayment. See Chapter 9.24.3 (Child Care Rates, Registration Fees, Copayments), Chapter 9.27 (Higher Rates for Quality - Accreditation/Credential), Chapter 9.30 (Higher Rates for Quality – Parent Aware Rated Providers), and Chapter 6.21 (Family Copayment).

Base the maximum payment rate on the county where child care is provided. Pay out-of-state providers based on the participant’s county of residence.

Do not pay more than the CCAP maximum rate or the rate the provider charges to private, full-paying families for like services, whichever is lower. Do not place other limits on the payment amount.

The payment amount is based on:

· the county where care is provided,

· the age of the child,

· the type of the provider,

· provider’s charge,

· number of hours of child care that are authorized,

· hours the child is scheduled to be in care.

When the provider charge is more than the amount CCAP can pay, the parent is responsible for the additional amount plus the family co-payment fee.

LEGAL NONLICENSED PROVIDERS (LNL)

Legal nonlicensed child care providers can only be paid by the hour. CCAP cannot pay for more than 10 hours of care in one day. CCAP cannot pay for more than 50 hours of care in one week.

LICENSED PROVIDERS AND LICENSE EXEMPT CENTERS

For children attending licensed family child care providers, licensed centers, and license -exempt centers, if the child is authorized and scheduled for:

More than 35 hours per week with a single provider, CCAP will pay the maximum weekly rate, not to exceed the provider charge.

OR

35 hours or less per week with a single provider and:

-

More than 5 hours per day with a single provider, CCAP will pay the maximum daily rate, not to exceed the provider charge. CCAP cannot pay more than the maximum weekly rate for one week of care.

-

5 hours or less per day with a single provider, CCAP will pay the maximum hourly rate for each hour of care, not to exceed the provider charge. CCAP cannot pay more than the maximum daily rate for one day of care. CCAP cannot pay more than the maximum weekly rate for one week of care

During the school year for school age children, before and after school age care providers sometimes use “session rates.” In these cases, the hours of care authorized will determine if an hourly, daily or weekly rate may be paid. Payment will be the lesser of the CCAP maximum rate or the provider charge. See Chapter 9.1 (Child Care Authorization) for more information on authorizing care for school age children.

MAXIMUM AUTHORIZATION AND PAYMENT

Do NOT authorize or pay for more than 120 hours of child care assistance per child every biweekly period.

Count all hourly rates paid to legal non-licensed providers towards the 120 hours.

To convert child care paid on a full-day or weekly basis to licensed providers into hours to determine if payment exceeds 120 hours of child care assistance:

Payment at the daily maximum rate is equal to 10 hours of care

Payment at the weekly maximum rate is equal to 50 hours of care

Rate

Actual Hours of Care

Count Toward Total Hours of Care

Hourly

5 or less

Actual number of hours

Full-Day

Greater than 5

10 hours

Weekly

Greater than 35

50 hours

PAYMENT DEDUCTIONS

The Department of Human Services Financial Operations Division staff will enter IRS and Minnesota Department of Revenue levies, send appropriate notices and monitor fulfillment of the levy. Agency staff can view information on IRS and Minnesota Department of Revenue tax levies and see that a levy has been entered and/or payments made tied to a particular provider in MEC2 . For other payment deductions required by law, such as child support payments, see Chapter 12.6.12 (Payment Deduction Required by Law Notices) and the MEC2 User Manual for entering deductions.

LICENSE EXEMPT PROGRAM RATE

Make payments for care of children in license exempt programs (such as school based school-age programs, summer camps, etc.) at the same rate as licensed centers in the same age category.

HIGHER RATES FOR QUALITY

Providers with certain current early childhood development credentials and providers with a three or four-star Parent Aware rating are eligible for higher rates for quality. Higher rates for quality are not a bonus that providers can charge above their typical rates. High quality rates may allow CCAP to pay more of the rate a provider is charging private, full-paying families for like services. See Chapter 9.27 (Higher Rates for Quality – Accreditation/Credential) and Chapter 9.30 (Higher Rates for Quality – Parent Aware Rated Providers).

SPECIAL NEEDS RATE

Payment rates for care of children with special needs may exceed your agency’s maximum rates. See Chapter 9.54 (Special Needs)

CO-PAYMENTS

Child care providers are responsible for collecting family copayment fees and must inform your agency if the copayment was or was not received. Most billing statements provide a declaration of receipt of the family’s copayment. The agency may stop payment or refuse to pay a submitted bill if the provider falsely declares receipt of the family’s copayment. When a family is unable to pay their copayment, a payment arrangement can be established between the provider, the parent, and the agency. The parent must continue to comply with the payment agreement. See Chapter 9.24.3 (Copayment schedule).

CHILD CARE EXPENSES PAID BY OTHER SOURCES

If the family receives partial or full reimbursement for child care expenses from sources other than child care assistance funds, reduce the amount of the child care assistance by the amount or reimbursement earmarked for the same child care expenses.

When the family receives a Post-Secondary Child Care Grant that is earmarked to cover the same child care expenses that could be paid by the child care assistance program, the entire grant must be used before CCAP can make payments and the case must be suspended. If the grant is used for different child care expenses, CCAP does not need to be suspended. See Chapter 9.9.3 (Post-Secondary Child Care Grant) for more information on Post-Secondary Child Care Grants and how to use the grant in combination with CCAP funds.

Families can receive both CCAP and an Early Learning Scholarship. If a child is receiving CCAP, CCAP funds should be used first. Do not reduce CCAP payments due to an Early Learning Scholarship. Do not count an Early Learning Scholarship as income. An Early Learning Scholarship could be used to cover family copayments, transportation or activity fees, private pay rates not covered by CCAP maximums, and breaks or reductions in CCAP authorization/eligibility.

When funds from other sources are paid directly to the family’s child care provider on behalf of the family, eligibility is not affected and the funds are excluded from the family’s income. Child care providers who accept third-party payments must maintain family specific documentation of payment source, amount, types of expenses, and time period covered by the payments. CCAP should not be billed for costs covered by third party sources. The provider is responsible for ensuring proper billing. Providers may use the Child Care Assistance Program Financial Tracking Form (PDF) (DHS-5318-ENG) to record third party payments.

CHILD CARE SUPPORT ORDER

A CCAP applicant or participant may have a Child Care Support Order stating the noncustodial parent pay a percentage or a set amount of the child care expenses. If the noncustodial parent is making payments directly to the provider and the amount only covers the copayment or another part of the child care expenses that CCAP would not pay it would not affect the CCAP case. The provider would need to indicate on the billing form that the copay was paid or that there was a payment agreement. If the noncustodial parent is making the payment directly to the provider and the amount covers part of the child care expenses that CCAP would pay the provider should be directed not to bill CCAP for that part of the child care expense. In both of these situations the provider must keep records of the payments received and the payment sources. If the noncustodial parent is making the payment to the custodial parent the payment would be considered income to the custodial parent.



LEGAL AUTHORITY

Minnesota Statutes 119B.13
Minnesota Statutes 119B.10, Subd. 11
Minnesota Rules 3400.0110, Subd. 4a
Minnesota Rules 3400.0130

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