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Prior to implementation of the Market Rate Surveys (MRS), three virtual public meetings were held for interested stakeholders from November 8-16, 2023. Invitations were sent to all licensed child care providers in the state, as well as home-based providers participating in the Nurturing Homes Initiative (approximately 85 providers). A total of 114 providers, representing 136 facilities, attended one of the three sessions. Of the 93 attendees who specified whether they accepted subsidies, 86 reported that they accepted child care subsidies, and seven reported that they did not. At each meeting, representatives from the SCL presented information on the 1) goals and purposes of the MRS, 2) benefits of the MRS to child care providers, 3) survey implementation plan, 4) survey analysis plan, 5) survey results reporting plan, and 6) topics covered in the survey. After this presentation, SCL and MDHS representatives fielded questions from providers. The primary themes that emerged from the question and answer session are discussed below.

Several providers had questions and concerns about how their responses to the Market Rate Survey would impact subsidy rates. Providers asked, “Doesn’t my participation [in the survey] hurt since I accept subsidies?” and “Won’t my answers lower the rate and also not be meaningful since I’m just giving the subsidy rates back to MDHS?” Providers were reminded that their cooperation was essential for the survey to be meaningful and representative of their and families’ needs and experiences. They were also encouraged to participate in the MRS, so MDHS could get the full picture of what both providers who do and who do not accept subsidies are charging.

One provider expressed concerns about how a change in subsidy rates would impact them. Another wondered what they would do if subsidy rates went up, but private pay parents could not afford the increased rate. Another added that they are not allowed to charge private tuition rates below the subsidy rate. After the meetings, clarification on subsidy rate policies was shared with providers via emailed recruitment materials explaining that tuition rates must be the same for families with subsidy vouchers and families paying privately. However, providers are allowed to set tuition rates over or under the subsidy rate. If they charge over the subsidy rate, they can charge or waive the difference for families with subsidies. If they charge less than the subsidy rate, they are still allowed to receive the full subsidy rate.

Another theme that emerged from the public meetings was a concern over urban versus rural designations, with one provider stating, “There’s very little difference in the cost of providing care in [urban versus rural] counties, and it’s been the pattern and practice to provide higher rates of reimbursement to those providers in what’s considered urban counties versus rural counties.” MDHS explained that they are required to report on higher- cost areas and lower-cost areas, and that in the past they used metro versus non-metro

PUBLIC MEETINGS