Families are underpaid if they do not receive the benefits for which they are eligible. Providers are underpaid if they do not receive the payment for which they are eligible.

The county or tribe corrects underpayments based on criteria included in their county or tribal fund plan. If the county or tribe decides to correct an underpayment, the county or tribe must do so for all cases with similar circumstances.

For corrective payment on appeal decisions, see Chapter 15.18 (Effect of Appeal Decision).

Amount of underpayment

The amount of the underpayment is the difference between the child care assistance payments that the family and/or provider received and the child care assistance payments that the family and/or provider were actually eligible to receive.

To determine the amount of child care assistance the family and/or provider were actually eligible to receive, examine the following:

· Eligibility

· Copayment amount in billing

· Authorized hours

· Payment amount.

Policies change over time. Consider the policies in place at the time an action took place when determining whether an underpayment occurred and the amount of an underpayment. In some instances, changes to a family’s case that occurred before a policy changed but were processed after a policy changed may be subject to new policies. This may be appropriate and is not an underpayment.

When calculating an underpayment, use the maximum rates and copays in effect at the time care was provided. See Chapter 9.24.3 (Child Care Rates, Registration Fees, Copayments) for links to current and expired maximum rates and copayment schedules.

Legal authority

Minnesota Statutes 119B.08, subd. 3