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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: 10/2018

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 9.24.9 (Higher Rates for Quality - Accreditation/Credential), Chapter 9.24.12 (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 or if the provider is located in the cities of St. Cloud or Sartell, base the maximum payment rate on the city where 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.

The payment amount is based on:

  • · the county (or city, if St. Cloud or Sartell) where care is provided
  • · the age of the child
  • · the type of the provider
  • · the status of the provider (primary or secondary)
  • · 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 copayment fee.

    Legal nonlicensed providers (LNL)

    Legal nonlicensed 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, CCAP will pay:

  • · Up to the maximum weekly rate if the child is scheduled and authorized for more than 35 hours per week with a single provider.
  • · Up to the maximum daily rate if the child is scheduled and authorized for 35 hours or less per week, and more than five hours per day with a single provider.
  • · Up the maximum hourly rate if the child is scheduled and authorized for 35 hours or less per week, and five or less hours per day with a single provider.
  • CCAP will never pay for more than the maximum weekly rate to a child’s primary provider for one week of care.
  • CCAP will never pay more than two maximum daily rates to a child’s secondary provider for a two-week billing period.
  • Sessions of child 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 (Authorizing Child Care).

    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 nonlicensed 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

    Daily

    Greater than 5

    10 hours

    Weekly

    Greater than 35

    50 hours

    Payment deductions

    The Department of Human Services Financial Operations Division staff enters IRS and Minnesota Department of Revenue tax levies, sends appropriate notices and monitors 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 charges private, full-paying families for like services. See Chapter 9.24.9 (Higher Rates for Quality – Accreditation/Credential) and Chapter 9.24.12 (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 9.15.15 (Special Needs).

    Copayments

    Child care providers are responsible for collecting family copayment fees and must indicate on the billing form if the copayment was or was not collected or if the copayment was waived. 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. If the copayment is not collected, the provider can indicate on the billing form if there is a payment agreement. The family must continue to comply with the payment agreement to remain eligible for CCAP. See Chapter 6.21 (Family Copayment).

    Legal authority

    Minnesota Statutes 119B.097
    Minnesota Statutes 119B.10, Subd. 11

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

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