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Child Care Assistance Program (CCAP) Policy Manual

Child Care Assistance Program (CCAP) Policy Manual


12.6.6 Adverse Action Notices - Provider

ISSUE DATE: 05/2025

Unless otherwise specified in law, providers must be given a 15-calendar day notice when a negative action is taken against a family or the provider. See Chapter 12.1 (15-Day Notice Requirements) for the exceptions.

Notice to providers of adverse actions against families

Providers receive notices of adverse actions for actions taken against families. Examples of adverse actions against families include:

  • · A reduction in the hours of authorized care.
  • · An increase in the family’s copayment.

    • The adverse action notice includes:

  • · The family’s name.
  • · A description of the adverse action that does NOT contain any information about why the action was taken.
  • · The effective date of the adverse action.
  • · A statement that unless the family appeals the adverse action prior to the effective date, the action will occur on the effective date.

    • Providers do not have appeal rights for actions taken against a family; a family is responsible for appealing action taken against them. See Chapter 15.3 (Appealable Issues) and 15.6 (Family and Provider Appeal Rights).

    Notice to providers of adverse actions against the provider when a fair hearing is allowed

    Providers receive notices of adverse actions for action taken against the provider. Examples of adverse actions against providers when a fair hearing is allowed include:

  • · Rate reductions based on a change in the provider’s status, including Parent Aware rating ending or decreasing or an accreditation ending.
  • · Overpayments.
  • · Registration closure or denial, except when a provider is entitled to a contested case hearing, an administrative review, or an administrative reconsideration. For information about notices for contested case hearings, see Chapter 12.6.9 (Termination Notices – Provider). See below for information about notices for administrative reviews and administrative reconsiderations.

    • The adverse action notice includes:

  • · A description of the action.
  • · The factual basis for the agency’s determination.
  • · The dollar amount of monetary recovery or recoupment, if known and/or applicable.
  • · The provider’s appeal rights.

    • Notice to providers of adverse actions against the provider when an administrative review is allowed

    Providers receive this type of notice when there has been a payment stop or a payment suspension due to an investigation. When the State of Minnesota issues a payment stop or a payment suspension, all payments to the provider stop, including for past services already provided but not yet been billed.

    The agency that takes the action must mail written notice to the provider within five days of suspending payment or denying or revoking the provider’s authorization.

    The adverse action notice includes:

  • · The legal authority used to take the action.
  • · The general allegations leading up to the action.
  • · Explanation that the action is temporary and outlines the circumstances when the payment stop may be lifted; AND
  • · The provider’s right to request an administrative review by submitting written evidence and argument to DHS.

    • Notice to providers of adverse actions against the provider when an administrative reconsideration is allowed

    Providers receive this type of notice when the State of Minnesota temporarily withholds their payments due to a credible allegation of fraud. When the State of Minnesota withholds payments for this reason, all payments to the provider stop, including for past services already provided but not yet billed.

    The State of Minnesota must mail written notice to the provider within five days of withholding the provider’s payment.

    The adverse action notice must:

  • · State the legal authority used to withhold payments.
  • · Lay out the general allegations leading up to the action.
  • · Explain that the action is temporary and outlines the circumstances when the payment withhold may end; AND
  • · Tell the provider of their right to contest the payment withhold by submitting written evidence to DHS or DCYF.

    • Legal authority

    Minnesota Statutes 142A.12, subd. 5
    Minnesota Statutes 142E.18
    Minnesota Statutes 142E.19
    Minnesota Statutes 245.095, subd. 5
    Minnesota Rules 3400.0185, subp. 4
    Minnesota Rules 3400.0040, subp. 4

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