2.5 Promoting Continuity of Care

Lead Agencies must consider children’s development and promote continuity of care when authorizing child care services and must establish a minimum 12-month period for each child, both at the initial eligibility determination and redetermination. 2.5.1 Children’s development Describe how the Lead Agency’s eligibility, enrollment, reporting, and redetermination policies promote continuity of care in order to support children’s development. Kentucky has a one case concept that allows returned documentation to be used across programs, which lessons the load on the client. Clients have multiple options for returning requested documents. Providers have access to a ￿Provider Portal￿, that allows them to receive important notices regarding the CCAP children in their care. They are also able to use the portal to return time sensitive documents that are uploaded directly to the client’s case. Kentucky uses ￿AI￿ to process these documents on the day they are returned. Clients are questioned about their provider selection at their initial CCAP application interview, so there is no delay in entering the child’s enrollment when the case is approved. Clients can report future provider changes, if they are known, which is very helpful during a child’s breaks from school. Kentucky sends the client a re-determination notice 45 days prior to the end of the eligibility period, so the client has plenty of time to complete the renewal process. The client has the option of going to their local office or using ￿Call Services￿ to complete their interview, which allows them to select what works best for their schedule. DCC amended the DCC-113 - Facts about the Child Care Assistance Program, and created a Consumer Education Statement that is automatically generated in Integrated Eligibility and Enrollment System (IEES) and sent to all CCAP applicants. Issuance of these two forms began on November 17, 2023. This Consumer Education Statement gives information regarding developmental screenings and how they are used to take a closer look at how a child is developing and make sure everything is on track. Contact information is also given for ￿Help Me Grow Kentucky’, which is a free, confidential call center for families, health providers and community service providers offering developmental screening and connections to local services and learning activities. 2.5.2 Minimum 12-month eligibility Lead Agencies must establish a minimum 12-month eligibility period for each child, both at the initial eligibility determination and at redetermination to support continuity in child care assistance and reduce barriers to families retaining eligibility. This requirement is: • Regardless of changes in income, Lead Agencies may not terminate CCDF assistance during the minimum 12-month period if a family has an increase in income that exceeds the Lead Agency’s income eligibility threshold but not the federal threshold of 85 percent of SMI; and • Regardless of temporary changes in participation in work, training, or educational activities. a. Does the Lead Agency certify that their policies or procedures provide a minimum 12- month eligibility period for each child at initial eligibility determination? [x] Yes. [ ] No. If no, describe: b. Does the Lead Agency certify that its definition of “temporary change” includes each of the minimum required elements? 1. Any time-limited absence from work for an employed parent due to such reasons as the need to care for a family member or an illness. 2. Any interruption in work for a seasonal worker who is not working between regular industry work seasons. 3. Any student holiday or break for a parent participating in a training or educational program. 4. Any reduction in work, training, or education hours, as long as the parent is still working or attending a training or educational program. 5. Any cessation of work or attendance at a training or educational program not listed above. In these cases only, Lead Agencies may establish a period of 3 months or longer. 6. Any change in age, including a child turning 13 years old during the minimum 12-month eligibility period. 7. Any changes in residency within the State or Territory. [ ] Yes. [x] No. If no, describe: The Lead Agency received a non-compliance notice on December 13, 2021, because temporary changes as described in the definition of "temporary change" are limited to 3 months. Currently, temporary changes to the parent’s qualifying activity could terminates a child’s eligibility for child care services prior to the end of the 12-month eligibility period if the parent fails meet the minimum requirement by the end of the 3 month ￿job search/grace period￿. The Lead Agency is requesting additional time to bring this element into compliance. Regulation and policy updates to address this non-compliance will be completed by 12/31/24 and are expected to be implemented by 12/31/24. Updated information on these policy and regulation changes will be as follows: Families experiencing temporary changes to their qualifying activity, will have no interruption in their benefit during the 12-month eligibility period. Kentucky is in the process of implementing changes in the following areas: Any time-limited absence from work for an employed parent due to such reasons as the need to care for a family member or an illness. Any interruption in work for a seasonal worker who is not working between regular industry work seasons. Any student holiday or break for a parent participating in a training or educational program. Any reduction in work, training, or education hours, if the parent is still working or attending a training or educational program. DCC has drafted an amendment to 922 KAR 2:160 - Child Care Assistance Program to more clearly define temporary changes. This amendment is on track to be filed by July 15, 2024. Once the amendment is filed, there is an open comment period of 60 days, then two legislative hearings must be held for approval. c. Are the policies different for redetermination? [x] No. [ ] Yes. If yes, provide the additional/varying policies for redetermination: 2.5.3 Job search and continued assistance a. Does the Lead Agency consider seeking employment (engaging in a job search) as an eligible activity at initial eligibility determination and/or at the minimum 12-month eligibility redetermination? (Note: If yes, Lead Agencies must provide a minimum of 3 months of job search.) Check all that apply: i. [x] Yes. The Lead Agency does consider seeking employment (engaging in a job search) as an eligible activity at initial eligibility determination. If yes, describe: The Lead Agency received a non-compliance notice on December 13, 2021. However, this element is currently in compliance. Currently, households may gain initial CCAP eligibility with Initial Job Search for a minimum of three (3) calendar months from the date of application. ii. [ ] Yes. The Lead Agency does consider seeking employment (engaging in a job search) as an eligible activity at redetermination. If yes, describe: iii. [ ] No. The Lead Agency does not consider seeking employment (engaging in a job search) as an eligible activity at initial eligibility determination or redetermination. b. Does the Lead Agency continue assistance during the minimum 12-month eligibility period when a parent has a non-temporary loss or cessation of eligible activity? [ ] Yes. The Lead Agency continues assistance. [x] No, the Lead Agency discontinues assistance. i. If no, describe the Lead Agency’s policies for discontinuing assistance due to a parent’s non-temporary change: The Lead Agency received a non-compliance notice on December 13, 2021, regarding continued assistance during non- temporary loss of activity. Currently, if the parent reports a non-temporary loss or cessation of their qualifying activity, the parent is given an up to three (3) month ￿Job Search￿ period. If at the end of the ￿Job Search￿ period, they are still not participating in a qualifying activity, their eligibility ends. There is no limit to the number of times this ￿Job Search￿ option for continuous care can be used, provided they are participating in a qualifying activity between usage. Job Search for continued eligibility does not have a limit set on the number of times it can be used. The family would not be able to use the ￿Job Search￿ option at their redetermination. They would need to be participating in a qualifying activity for continued care. ii. If no, describe what specific actions/changes trigger the job-search period after each such loss or cessation: The ￿Job Search￿ period is triggered when the client reports the non-temporary last day of employment or education, and it is entered into the client’s case. Job Search for continued eligibility does not have a limit set on the number of times it can be used. The family would not be able to use the ￿Job Search￿ option at their redetermination. They would need to be participating in a qualifying activity for continued care. iii. If no, how long is the job-search period where a family can continue assistance (must be at least 3 months)? The ￿Job Search￿ period is three (3) months unless the parent’s case is due for recertification. At recertification, the parent must be participating in a qualifying activity. Job Search for continued eligibility does not have a limit set on the number of times it can be used. The family would not be able to use the ￿Job Search￿ option at their redetermination. They would need to be participating in a qualifying activity for continued care. c. The Lead Agency may discontinue assistance prior to the next minimum 12-month redetermination in the limited circumstances listed below. Check and provide the policy for all circumstances in which the Lead Agency chooses to discontinue assistance prior to the next minimum 12-month redetermination: i. [ ] Not applicable. ii. [ ] Excessive unexplained absences despite multiple attempts by the Lead Agency or designated entity to contact the family and provider, including the prior notification of a possible discontinuation of assistance. Provide the Lead Agency’s policy defining the number of unexplained absences identified as excessive: iii. [x] A change in residency outside of the State or Territory. Provide the Lead Agency’s policy for a change in residency outside the State or Territory: As part of technical eligibility; a child must be a resident of Kentucky. A child’s eligibility will be discontinued if the child ceases to reside within the state. Policy will be updated by 10/1/24 to include the action taken once it is reported the child is no longer living in the state. Once it is reported that a child no longer resides in Kentucky, the Lead Agency ends their eligibility. Citation: CCAP Policy Manual VIII (Section 3010) iv. [x] Substantiated fraud or intentional program violations that invalidate prior determinations of eligibility. Provide the Lead Agency’s definition of fraud/intentional program violations that lead to discontinued assistance: An Intention Program Violation (IPV) is when a CCAP recipient or child care provider having intentionally made a false or misleading statement, misrepresented, concealed or withheld facts. Citation: CCAP Policy Manual VIII (Sections 1020/6025) 2.5.4 Reporting changes during the minimum 12-month eligibility period Lead Agencies may only require families to report changes that impact a family’s eligibility, including only if the family’s income exceeds 85 percent of the SMI, taking into account irregular fluctuations in income, or there is a non-temporary change in the parent’s work, training, or education status, during the 12-month eligibility period. Lead Agencies may also require families to report that enable the lead agency to contact the family or pay providers, such as a new telephone number or address. Note: The response below should exclude reporting requirements for a graduated phase-out, which are described in question 2.5.5. Does the Lead Agency limit what families must report during the 12-month eligibility period to the changes described above? [ ] Yes. [x] No. If no, describe: The Kentucky Division of Child Care received a non-compliance notice on December 13, 2021, regarding ￿Reporting changes during the minimum 12- month eligibility period￿. Currently the Lead Agency, requires the family to report changes that may not impact their eligibility. Kentucky Division of Child Care is requesting additional time to bring this element into compliance. Regulation and policy updates to address this non-compliance will be completed by 12/31/24 and are expected to be implemented by 12/31/24. Updated information on these policy and regulation changes will be as follows: The following changes must be reported no later than 10 days after the change occurs: • Non-temporary loss or ending of eligible activity; • Monthly income that exceeds 85% State Median Income (SMI) for their appropriate household size; • Change in marital status; • Change in mailing address or residency; • Changes in child care providers and/or changes in the scheduled hours care is needed. 2.5.5 Policies and procedures for graduated phase-out of assistance at redetermination Lead Agencies that establish initial family income eligibility below 85 percent of SMI must provide a graduated phase-out of assistance for families whose income has increased above the Lead Agency’s initial income threshold at the time of redetermination but remains below the federal threshold of 85 percent of SMI. Lead Agencies that provide a graduated phase-out must implement a two-tiered eligibility threshold, with the second tier of eligibility (used at the time of eligibility redetermination) to be set at: (i) 85 percent of SMI for a family of the same size; or, (ii) An amount lower than 85 percent of SMI for a family of the same size but above the Lead Agency’s initial eligibility threshold that: (A) Takes into account the typical household budget of a family with a low income (B) Provides justification that the second eligibility threshold is: (1) Sufficient to accommodate increases in family income over time that are typical for workers with low incomes and that promote and support family economic stability (2) Reasonably allows a family to continue accessing child care services without unnecessary disruption At redetermination, a child must be considered eligible if their parents are participating in an eligible activity even if their income exceeds the Lead Agency’s initial eligibility income limit as long as their income does not exceed the second tier of eligibility. Note that once determined eligible, the child must be considered eligible for a full minimum 12-month eligibility period, even if the parents’ income exceeds the second tier of eligibility during the eligibility period, as long as it does not exceed 85 percent of SMI. A child eligible for services via the graduated phase-out of assistance is considered eligible under the same conditions as other eligible children with the exception of the co-payment restrictions, which do not apply to a graduated phase-out. To help families transition from child care assistance, Lead Agencies may gradually adjust co-payment amounts in proportion to a family’s income growth for families whose children are determined eligible under a graduated phase-out. Lead Agencies may require additional reporting on changes in family income but must still ensure that any additional reporting requirements do not constitute an undue burden on families. Check and describe the option that best identifies the Lead Agency’s policies and procedures regarding the graduated phase-out of assistance. a. [x] Not applicable. The Lead Agency sets its initial eligibility threshold at 85 percent of SMI and therefore is not required to provide a graduated phase-out period. (If checked, skip to question 3.1.1.) b. [ ] The Lead Agency sets the second tier of eligibility at 85 percent of SMI. If checked, describe the policies and procedures: i. [ ] Lead Agency adjusts the family’s co-pay during the graduated phase-out period. If checked, describe how the Lead Agency gradually adjusts co-payment for families under a graduated phase-out period in proportion to a family’s income growth. Include information on the percentage or amount of change made in the co-payment during graduated phase-out: ii. [ ] Lead Agency requires additional reporting requirements during the graduated phase-out period. If checked, describe: c. [ ] The Lead Agency sets the second tier of eligibility at an amount lower than 85 percent of SMI for a family of the same size but above the Lead Agency’s initial eligibility threshold. If checked, provide the following information: i. Provide the income level ($/month) and the percent of SMI for the second tier of eligibility for a family of three: ii. Describe how the second eligibility threshold takes into account the typical household budget of a low-income family: iii. Describe how the second eligibility threshold is sufficient to accommodate increases in family income over time that are typical for low-income workers and that promote and support family economic stability: iv. Describe how the second eligibility threshold reasonably allows a family to continue accessing child care services without unnecessary disruption: v. [ ] Lead Agency adjusts the family’s co-pay during the graduated phase-out period. If checked, describe how the Lead Agency gradually adjusts co-payment for families under a graduated phase-out period in proportion to a family’s income growth. Include information on the percentage or amount of change made in the co-payment during graduated phase-out: vi. [ ] Lead Agency requires additional reporting requirements during the graduated phase-out period. If checked, describe: 3 Child Care Affordability CCDF subsidies make child care more affordable for eligible families, providing access to a greater range of child care options that allow parents to work, go to school, or enroll in training and they allow parents to access higher quality care options that better support children’s development. CCDF requires some families participating in CCDF to pay an affordable co-payment set by the Lead Agency to cover a part of their care. But co-payments can be a significant and destabilizing financial strain on family budgets and a barrier to parent employment, and the CCDBG Act requires that the co-payment amount not be a barrier to families participating in CCDF. Lead Agencies may not set parent co-payments above 7% of family income regardless of gradual phase- out policies and regardless of the number of children receiving assistance. Lead Agencies are encouraged to set co-payments much lower than 7% to make child care more affordable for more families and have broad flexibility to waive co-payments for to many participants. 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. In this section, Lead Agencies will identify how they determine an eligible family’s co-payment, the policies in place to waive or ensure co-payments are affordable for families, and how the Lead Agency improves access for children and families in economically and/or socially marginalized communities.