Child care assistance families are responsible for a copayment. The copayment is paid to the family’s child care provider biweekly.

The copayment amount is based on family size and annual income after allowable deductions. Copayments are graduated to move families towards full payment of their child care costs as their income increases.

During the biweekly period when the family first receives service, MEC2 will prorate the copayment based on the number of calendar days left in the biweekly period.

Changes in income and/or family size

Copay cannot increase during the 12-month eligibility period

During the 12-month eligibility period, the amount of the copayment cannot increase.

When family income increases or the family size decreases, the copayment will stay the same until the family’s next redetermination. At redetermination, the copayment will increase after a 15-day notice.

Copay can decrease during the 12-month eligibility period

During the 12-month eligibility period, the amount of the copayment can decrease. A decrease in copayment is effective the first day of the biweekly period after the copay change is approved in MEC².

When family size increases, the copayment can decrease, even if the family size increase is not verified. Note: If a new person with unverified income is added to the family size, unverified income can be entered but is not required to be entered. Entering the income may result in no copayment decrease or a smaller decrease.

When family income decreases:

· If the income decrease is not verified, the copayment should not decrease. Do not enter an unverified income decrease. MEC² will not check if entered income changes are verified. If an unverified income decrease is entered into MEC² the system may incorrectly decrease the copayment for the family. The family may be subject to an overpayment, if verification later shows the copayment should not have decreased, and the overpayment was caused at least in part by the family’s action or error. See Chapter 14 (Overpayments) to determine when to assess an overpayment.

· If the family submits verification of the income decrease, the worker must determine if the decrease is an accurate projection of future annualized income. If the decrease is an accurate projection of annualized income and the change would result in a decreased copayment, the worker must take action to reduce the copayment. This includes creating new Eligibility and Service Authorization results that must be approved. A case note is recommended if the worker does not act on a verified income decrease.

· Workers are not required to act on the following income changes during the 12-month eligibility period: MFIP grant amount changes, changes in child support income, or changes that the family has not reported to the child care worker but that are otherwise known to the agency. Workers may act on these changes but are not required to do so.

Copayment not paid

In some situations, the family is not required to pay the copayment. This includes when:

· The child care provider has chosen to waive the copayment for the family.

· Someone outside the family pays the copayment on behalf of the family. Examples include payment by scholarships or a friend of the family. The provider must keep a record of these transactions. Do not count this as income for the family. See Chapter 9.9.3 (Child Care Expenses Paid By Other Sources).

In all other situations, when a family does not pay the required copayment, the family is ineligible for child care assistance until:

· The copayment is paid

OR

· The family reaches an agreement for payment with the provider and the county

AND

· The family continues to comply with the payment agreement.

Note: Some providers apply the amount paid by the family to the oldest fees or to the amount that is more than the maximum rate. In these cases, the provider considers the copayment not to have been paid and may indicate this on the billing voucher. Consider the family to have paid the copayment if the family or provider is able to document that an amount has been paid that is equal to or greater than their copayment.

Special situations

Temporary ineligibility and suspend

The copayment can decrease or stay the same when a case is moved out of temporary ineligibility or suspension during the 12-month eligibility period. The copayment cannot increase.

Reinstatement

If a reinstatement is tied to a redetermination, the copayment can increase, decrease, or stay the same. See Chapter 10.6.10 (Redetermination Processing – Reinstatement).

If a reinstatement is not tied to a redetermination and the reinstatement occurs during the 12-month eligibility period, the copayment can decrease or stay the same. The copayment cannot increase.

Incorrect copayment approved

If the approved copayment is lower than it should be, the copayment can increase to avoid continued incorrect payments. See Chapter 14 (Overpayments) to determine when to assess an overpayment. Workers need to contact their CCAP policy specialist to correct the copayment.

If the approved copayment is higher than it should be, the copayment can decrease. The agency can issue an underpayment if allowed under their County and Tribal Child Care Fund Plan underpayment policies.

Recoupment

A copayment can increase during the 12-month eligibility period due to recoupment of an overpayment. The recoupment is based on the family’s current copayment. See Chapter 14.9.6 (Recoupment – Families) for information about how to determine the recoupment amount.

For the copayment schedules, select the applicable time period:

· Copayment Schedules effective October 13, 2025 (DHS-6413N) (PDF)

· Copayment Schedules effective October 14, 2024 - October 12, 2025 (DHS-6413M) (PDF)

· Copayment Schedules effective October 2, 2023 – October 13, 2024 (DHS-6413L) (PDF)

· Copayment Schedules effective October 3, 2022 – October 1, 2023 (DHS-6413K) (PDF)

· Copayment Schedules effective October 4, 2021 - October 2, 2022 (DHS-6413J) (PDF)

· Copayment Schedules effective October 5, 2020 - October 3, 2021 (DHS-6413I) (PDF)

Legal authority

Minnesota Statutes 142E.14, subd. 2
Minnesota Statutes 142E.03, subd.4
Minnesota Statutes 142E.15
Minnesota Rules 3400.0020, subp. 12e
Minnesota Rules 3400.0040, subp. 6a
Minnesota Rules 3400.0100
Minnesota Rules 3400.0180, subp. 8