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 maximum percent of a family’s gross income paid by families is 14 percent at the exit income range at redetermination, which is 67 percent SMI. The percent paid reduces to 11 percent, during the 12-month eligibility period, for families with income above 67 percent SMI and below 85 percent SMI. Minnesota will be submitting a waiver for charging more than 7% of a family's gross income, regardless of the number of children participating in CCDF. 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 -- 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)? 2 1322.00 5.00 0.38 3835.00 196.00 5.11 3 1666.00 5.00 0.30 4738.00 242.00 5.11 4 2009.00 5.00 0.25 5640.00 288.00 5.11 5 2353.00 5.00 0.21 6542.00 334.00 5.11 c. What is the effective date of the sliding-fee scale(s)? October 13, 2025 d. Provide the link(s) to the sliding-fee scale(s): https://edocs.dhs.state.mn.us/lfserver/Public/DHS-6413N-ENG 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 advocates for parents having full choice of the available child care market. Not allowing providers to charge the difference could have the unintended consequence of reducing the pool of providers willing to care for children receiving subsidies. Parents are informed they may need to pay the difference between their provider's price and what the Child Care Assistance Program can pay, in addition to their copayment fee. Parents who also receive early learning scholarships are able to use the scholarship to pay the difference. Some providers do waive the difference. The department assesses the difference between maximum rates and child care prices that are higher than the applicable maximum rates. Statewide, the October 30, 2023 maximum rates fully cover 79.1% of family child care prices and 82.5% of center prices based on prices reported in the 2021 market rate survey. Based on the 2021 market rate survey and the October 30, 2023 maximum rates, when prices are higher than the maximum rate the difference between that price and the maximum is about 2 percent, on average. The increase to maximum rates in October 2023 reduces the difference parents are required to pay. Given the high use of licensed care among Child Care Assistance Program recipients, this policy does not appear to be a barrier for most families to access licensed child care. There is evidence that families can access the child care market even when some child care providers collect amounts above the family copayment. 88% of children who receive child care assistance use center based care, which typically costs more. Feedback from advocates, families and providers seldom raise this as a barrier to accessing CCAP. 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 state collected data as part of the 2023-2024 Market Rate Survey. Providers accepting or willing to accept CCAP were asked, If the rate reimbursed by CCAP is not your full private pay rate, do you charge families the difference, in addition to collecting their copay? Of 1,439 providers who responded, 1,177 (82%) said that they do charge families the difference between their private pay rate and the CCAP rate (on top of the copay) and 262 providers (18%) said they do not charge that difference. Due to limitations in the data system used to collect Market Rate Survey data, the state was not able to collect data on the size or frequency of the amounts collected by providers on top of the copay.