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? 5% 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 1255.00 25.10 2.00 2510.00 75.30 3.00 2 1703.00 34.06 2.00 3407.00 102.21 3.00 3 2152.00 43.04 2.00 4303.00 129.09 3.00 4 2600.00 52.00 2.00 5200.00 156.00 3.00 5 3048.00 60.96 2.00 6097.00 182.91 3.00 c. What is the effective date of the sliding-fee scale(s)? July 1, 2024 d. Provide the link(s) to the sliding-fee scale(s): https://www.childcarenj.gov/ChildCareNJ/media/media_library/Copayment_Schedule.pdf 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: This approach allows families to choose from a broader range of providers since those that charge more than the child care assistance rates may not otherwise accept CCAP participants. Having this approach gives families more choices and NJ’s high child care assistance rates help promote affordability even where a provider might charge a higher rate. 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: Provider rate data is collected through three different methods and at various times. CCR&Rs annually collect provider rates as part of maintaining current provider demographics information in the resource and referral system. In addition, when child care agreements between parent and provider are established, providers submit their rates. And, lastly provider rates are collected through the market rate survey. These three data sources and collection methods provide needed information on provider rates, but it is important to note that multiple data sources and manual tracking/analysis pose data quality and consistency challenges. Narrow cost analysis (NCA) findings indicate that provider rates have significantly increased post-COVID19 due to overall higher costs for personnel, facility, and material and supplies. NCA shows that rates have increased across the board, from 10% (school-age) to 21% (infant care). These findings from the NCA align with NJ provider reports gathered through DHS/DFD data collection; however, DHS/DFD does not have statistically reliable or valid data to indicate if the full amount above the state rate is charged to families. Based on available data (as identified above), NJ families may be responsible for paying an average of $190 per month to those CCDF providers whose rates exceed the state amount and require families to pay the difference.