3.1 Family Co-payments

Lead Agencies must establish and periodically revise a sliding-fee scale for families receiving CCDF services that varies based on income and the size of the family to determine each family’s contribution (i.e., co-payment) and does not create a barrier to receiving CCDF assistance. In addition to income and the size of the family, the Lead Agency may use other factors as appropriate when determining family contributions/co-payments. Lead Agencies may not use price of care or amount of subsidy payment in determining co-payments. Lead Agencies must ensure that the total payment to a child care provider is not reduced because of family’s lowered or waived co-payment. 3.1.1 Family co-payment Lead Agencies may not charge any family more than 7% of a family’s gross income, regardless of the number of children participating in CCDF. a. What is the maximum percent of a family’s gross income any family could be charged as a co-payment? The Department of Human Services (DHS) is not compliant by 10/01/24 for section 98.20(a)(2)(i): 85 percent of the State’s median income (SMI) based on most recent SMI data. Preliminary Notice of Possible Non-Compliance Rev. date: 01/2023. DHS will need additional time to fully implement the requirement. The maximum percent of a family's gross income is 9%. The Department of Human Services is in the process of amending the Hawaii Administrative Rules (HAR) Chapter 17-798.3 Child care Payments, for copayments at 7% of a family’s gross income. The amendment package for Subsidy Rules is currently with the Attorney General for review. The eligibility chart in HAR, Chapter 17-798.3-9(b)(1) lists dollar amounts. The amendments will include language to refer to the most recent data rather than having actual dollar amounts. b. Does the Lead Agency certify that their sliding fee scales are always based on income and family size (regardless of how many different scales they may use)? [x] Yes. [ ] No. If no, describe: 3.1.2 Sliding fee scale Provide the CCDF co-payments for eligible families in the table(s) below according to family size for one child in care. a. Is the sliding fee scale set statewide? [x] Yes. [ ] No. If no, describe how the sliding fee scale is set: b. Complete the table below. If the sliding fee scale is not set statewide, complete the table for the most populous locality: -- A B C D E F Family Size Lowest monthly income at initial eligibility where the family is first charged a co-pay (greater than $0). What is the monthly co-payment for a family of this size based on the income level in (A)? What percentage of income is the co- payment in (B)? Highest monthly income at initial eligibility where a family is charged a co-pay before a family is no longer eligible. What is the monthly co- payment for a family of this size based on the income level in (D)? What percentage of income is this co- payment in (E)? 1 1199.00 12.00 1.00 3632.00 327.00 9.00 2 1622.00 16.00 1.00 4749.00 427.00 9.00 3 2046.00 20.00 1.00 5867.00 528.00 9.00 4 2469.00 25.00 1.00 6985.00 629.00 9.00 5 2892.00 29.00 1.00 8102.00 729.00 9.00 c. What is the effective date of the sliding-fee scale(s)? August 6, 2021 d. Provide the link(s) to the sliding-fee scale(s): https://humanservices.hawaii.gov/bessd/files/2021/09/Child-Care-Gross-Income- Eligibility-Limits-and-Sliding-Fee-Scale.pdf e. Does the Lead Agency allow providers to charge families additional amounts above the required co-payment in instances where the provider’s price exceeds the subsidy payment? [ ] No. [x] Yes. If yes: i. Provide the rationale for the Lead Agency’s policy to allow providers to charge families additional amounts above the required co-payment, including a demonstration of how the policy does not provide a barrier and promotes affordability and access for families: The Department of Human Services does not impose a limit on how much private child care businesses can charge families since the child care provider must be able to charge the cost that allows the provider to remain operational. The family chooses the child care provider that best suits the needs of the family and the child. The payment rates allow families receiving subsidies to access all care types at a majority of the licensed and registered child care facilities and homes throughout the state. ii. Provide data (including data on the size and frequency of such amounts) on the extent to which CCDF providers charge additional amounts to families: The Department of Human Services does not currently have the data on the extent to which child care providers charge additional amounts above the required co- payment.