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Title 13: Social Service Resources Page 87 Iowa Department of Health and Human Services Employees’ Manual Chapter G: Child Care Assistance Establishing Payment Rate Revised June 14, 2024 Method for Calculating a Half-Day Rate Establishing Payment Rate Legal reference: 441 IAC 170.4(7) Child Care Assistance (CCA) payment rates are based on a half-day unit of service. The child care rate tables for basic and special needs care (see Maximum Payment Rates) represent statewide maximum rate ceilings derived from a market rate survey of child care providers. Payment policies are organized into the following sections: ▪ Method for calculating a half-day rate ▪ Maximum payment rates ▪ Days of absence ▪ Limits on payment ▪ Appeal of rate calculation Method for Calculating a Half-Day Rate To establish the provider’s rate of payment, first determine if the provider already has a rate with the Department. Verify the rate by checking the Provider Rates screen of the KinderTrack (KT) system. Refer to 14-H, KinderTrack System. If the selected provider does not have a provider agreement with HHS, follow the steps listed under Nonregistered Providers. There may be circumstances when a provider does not have a rate. Examples: ▪ A provider who has never provided services to a child whose care is subsidized by the Department. ▪ A provider who has a rate for one age group, but is now expanding to cover additional age groups. Based on the information submitted on form 470-3871, Child Care Assistance Provider Agreement, determine whether the provider has a half-day rate. If the provider does not have a half-day rate: ▪ Calculate a half-day rate by dividing the provider’s full-day rate by 2, or ▪ If the provider has neither a half-day nor full-day rate, calculate a half-day rate by multiplying the provider’s hourly rate by 4.5. ▪ If the provider does not have a half-day, full-day or hourly rate, calculate the half-day rate by dividing the provider’s weekly rate by 5 to get a daily rate and then dividing this daily amount by 2 to get the half-day rate.