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? Maryland's assigned parental copayment is less than 1% of the families gross family income. 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 0.00 0.00 0.00 0.00 0.00 0.00 2 1.00 13.00 0.00 510.00 13.00 0.03 3 1.00 26.00 0.00 6302.00 26.00 0.00 4 1.00 39.00 0.00 7503.00 39.00 0.00 5 1.00 42.00 0.00 8703.00 42.00 0.00 c. What is the effective date of the sliding-fee scale(s)? The effective date of the sliding-fee scale May 23, 2022. d. Provide the link(s) to the sliding-fee scale(s): See Formal Rates - https://earlychildhood.marylandpublicschools.org/families/child-care-scholarship- program/child-care-scholarship-rates (*Use Downloads for Formal, Informal, and Unconditional Rates) and https://earlychildhood.marylandpublicschools.org/child-care- providers/child-care-scholarship-program 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: If Maryland limited child care providers serving children eligible for the child care scholarship to tuition rates equal to the child care scholarship reimbursement and the assigned parental co-payment, that policy decision would limit the parental choice options to less than 34% of the providers currently participating in the Child Care Scholarship Program. In addition, the policy would become a major deterrent to MSDE’s attempt to recruit higher quality child care providers that currently do not accept the child care scholarship, as a form of child care tuition reimbursement. Maryland recognizes child care as a private business, as such, Maryland does not regulate the amount child care providers determine they must collect in child care tuition in order to run their business and to provide quality early care and educational opportunities for children. Not limiting the tuition based upon child care scholarship reimbursement was an imperative policy decision in support of increasing equal access to higher quality child care for all parents, especially when Maryland’s reimbursement rates were at 11th percentile of the Child Care Provider Market Rate Survey (MRS). Effective May 23, 2022, childcare scholarship reimbursements are set at the 70th percentile across Maryland. MSDE’s analysis of the June 2021 Market Rate Survey results supports that this policy should remain in effect to provide a gateway for parents to access educational programs with tuition rates above or below their eligible child care scholarship reimbursement. Data suggests that implementing this policy gives parents greater accessibility to additional child care options. This payment practice allows parents to determine if they can or cannot afford to pay the difference between an early care and educational setting that charges below or above their child care scholarship reimbursement rate. Additional information in support of Maryland’s rationale to allow child care providers to charge families additional amounts above the required co-payment can be found at: (https://earlychildhood.marylandpublicschools.org/system/files/filedepot/19/09- 15-2021_june_2021_mrs_report.pdf) 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: Maryland’s analysis of the June 2021 MRS results indicated that 66% of the child care providers charge a tuition rate that is above the reimbursement of the child care scholarship plus the assigned copayment. The following is MSDE analysis of 26,097 scholarships to determine the amount parents pay out-of-pocket above the scholarship reimbursement plus the assigned copayment in order to cover the balance owed by the provider: 13,441 parents pay $1.00 - $25.00 per week above their child care scholarship and copayment, an amount totaling $55,282.00; 3,548 parents pay $26.00 - $50.00 per week above their child care scholarship and copayment, an amount totaling $136,064; 2,734 parents pay $51.00 $75.00 per week above their child care scholarship and copayment, an amount totaling $172.073; 2,398 parents pay $76.00 - $100.00 per week above their child care scholarship and copayment, an amount totaling $212,095; 2,388 parents pay $101.00 - $150.00 per week above their child care scholarship and copayment, an amount totaling $29,040; 1,005 parents pay above their child care scholarship and copayment, an amount totaling $173,713; and 583 parents pay $200.00 or more per week above their child care scholarship and copayment, an amount totaling $141,823. A total for 26,097 scholarships with a weekly total of $920,090 per week.