4.3 Adequate Payment Rates

The Lead Agency must set CCDF subsidy payment rates in accordance with the results of the current MRS or ACF pre-approved alternative methodology and at a level to ensure equal access for eligible families to child care services comparable with those provided to families not receiving CCDF assistance. Lead Agencies are also required to provide a summary of data and facts to demonstrate how payment rates ensure equal access, which means the Lead Agency must also consider the costs of base level care and higher quality care as part of its rate setting. Finally, the Lead Agency must re-evaluate its payment rates at least every 3 years. The ages and types of care listed in the base payment rate tables are meant to provide a snapshot of the categories of rates and are not intended to be comprehensive of all categories that might exist or to reflect the terms used by the Lead Agency for particular ages. If rates are not statewide, please provide all variations of payment rates when reporting base payment rates below. Base rates are the lowest, foundational rates before any differentials are added (e.g., for higher quality or other purposes) and must be sufficient to ensure that minimum health, safety, quality, and staffing requirements are covered. These are the rates that will be used to determine compliance with equal access requirements. 4.3.1 Payment rates a. Are the payment rates that the Lead Agency is reporting in 4.3.2 set statewide by the Lead Agency? [x] Yes. i. If yes, check if the Lead Agency: [ ] Sets the same payment rates for the entire State or Territory. [x] Sets different payment rates for different regions in the State or Territory. [ ] No. ii. If no, identify how many jurisdictions set their own payment rates: b. Provide the date the current payment rates became effective (i.e., date of last payment rate update based on most recent MRS or ACF pre-approved alternative methodology as reported in 4.2.1). 11/2/2025 c. If the Lead Agency does not publish weekly rates, then how were the rates reported in 4.3.2 or 4.3.3 calculated (e.g., were daily rates multiplied by 5 or monthly rates divided by 4.3)? Published rates are calculated weekly. 4.3.2 Base payment rates a. Provide the base payment rates in the tables below. If the Lead Agency completed a market rate survey (MRS), provide the percentiles based on the most recent MRS for the identified categories. If the Lead Agency sets different payment rates for different regions in the State or Territory (and checked 4.3.1aii), provide the rates for the most populous region as well as the region with payment rates set at the lowest percentile. Percentiles are not required if the Lead Agency also conducted an ACF pre-approved alternative methodology but must be reported if the Lead Agency conducted an MRS only. The preamble to the 2016 final rule states that a benchmark for adequate payment rates is the 75th percentile of the most recent MRS. The 75th percentile benchmark applies to the base rates. The 75th percentile is the number separating the lowest 75 percent of rates from the highest 25 percent. Setting rates at the 75th percentile, while not a requirement, would ensure that eligible families can afford three out of four child care providers. In addition to reporting the 75th percentile in the tables below, the Lead Agency must also report the 50th percentile and 60th percentile for each identified category. If the Lead Agency conducted an ACF pre-approved alternative methodology, provide the estimated cost of care for the identified categories, as well as the percentage of the cost of care covered by the established payment rate. If the Lead Agency indicated it sets different payment rates for different regions in the State or Territory in 4.3.1.a, provide the estimated cost of care and the percentage of the cost of care covered by the established payment rate for the most populous region as well as the region with rates established at the lowest percent of the cost of care. For each identified category below, provide the percentage of providers who are receiving the base rate without any add-ons or differential payments. Provide the full-time weekly base payment rates in the table below. If weekly payment rates are not published, then the Lead Agency will need to calculate its equivalent. i. Table 1: Complete if rates are set statewide. If rates are not set statewide, provide rates for most populous region. Percentiles are not required if the Lead Agency also conducted an ACF pre-approved alternative methodology but must be reported if the Lead Agency conducted an MRS only. Care Type Base payment rate (specify unit, e.g., per day, per week, per month) % of providers receiving Base rate Full-Time Weekly Base Payment Rate What is the percentile of the rate? (MRS) What is the 50th percentile of the rate? (MRS) What is the 60th percentile of the rate? (MRS) What is the 75th percentile of the rate? (MRS) What is the estimated cost of care? (Alternative Methodology) What percent of the estimated cost of care is the rate? Center Care for Infants (6 months) 325.00 Per Week 7.28 325.00 50.00 325.00 338.67 366.40 Family Child Care for Infants (6 months) 225.00 Per Week 0.55 225.00 50.00 225.00 250.00 280.00 Center Care for Toddlers (18 months) 292.15 Per Week 7.28 292.15 50.00 292.15 306.00 330.00 Family Child Care for Toddlers (18 months) 215.00 Per Week 0.82 215.00 50.00 215.00 235.51 270.00 Care Type Base payment rate (specify unit, e.g., per day, per week, per month) % of providers receiving Base rate Full-Time Weekly Base Payment Rate What is the percentile of the rate? (MRS) What is the 50th percentile of the rate? (MRS) What is the 60th percentile of the rate? (MRS) What is the 75th percentile of the rate? (MRS) What is the estimated cost of care? (Alternative Methodology) What percent of the estimated cost of care is the rate? Center Care for Preschool ers (4 years) 258.00 Per Week 8.93 258.00 50.00 258.00 273.04 295.00 Family Child Care for Preschool ers (4 years) 200.00 Per Week 1.51 200.00 50.00 200.00 220.00 250.00 Center Care for School- Age (6 years) 165.00 Per Week 6.73 165.00 50.00 165.00 250.00 212.00 Family Child Care for School- Age (6 years) 175.00 Per Week 1.08 175.00 50.00 175.00 200.00 225.00 ii. Table 2: Do not complete if rates are set statewide. If rates are not set statewide, provide rates for region with payment rates set at the lowest percentile. Percentiles are not required if the Lead Agency also conducted an ACF pre-approved alternative methodology but must be reported if the Lead Agency conducted an MRS only. Care Type Base payment rate (specify unit, e.g., per day, per week, per month) % of providers receiving Base rate Full-Time Weekly Base Payment Rate What is the percentile of the rate? (MRS) What is the 50th percentile of the rate? (MRS) What is the 60th percentile of the rate? (MRS) What is the 75th percentile of the rate? (MRS) What is the estimated cost of care? (Alternative Methodology) What percent of the estimated cost of care is the rate? Center Care for Infants (6 months) 195.00 Per Week 3.13 195.00 50.00 195.00 200.00 218.40 Family Child Care for Infants (6 months) 170.20 Per Week 6.25 170.20 50.00 170.20 170.62 175.00 Center Care for Toddlers (18 months) 180.00 Per Week 9.38 180.00 50.00 180.00 185.00 200.00 Care Type Base payment rate (specify unit, e.g., per day, per week, per month) % of providers receiving Base rate Full-Time Weekly Base Payment Rate What is the percentile of the rate? (MRS) What is the 50th percentile of the rate? (MRS) What is the 60th percentile of the rate? (MRS) What is the 75th percentile of the rate? (MRS) What is the estimated cost of care? (Alternative Methodology) What percent of the estimated cost of care is the rate? Family Child Care for Toddlers (18 months) 15162. 71 Per Week 12.50 162.71 50.00 162.71 165.46 174.00 Center Care for Preschool ers (4 years) 160.00 Per Week 9.38 1160.0 0 50.00 160.00 165.00 175.00 Family Child Care for Preschool ers (4 years) 150.00 Per Week 18.75 150.00 50.00 150.00 153.31 160.00 Center Care for School- Age (6 years) 155.00 Per Week 0.00 155.00 50.00 155.00 120.00 139.11 Family Child Care for School- Age (6 years) 131.00 Per Week 12.50 131.00 50.00 131.00 134.22 150.00 b. Does the Lead Agency certify that the percentiles reported in the table above are calculated based on their most recent MRS or ACF pre-approved Alternative Methodology? [x] Yes. [ ] No. If no, what is the year of the MRS or ACF pre-approved alternative methodology that the Lead Agency used? What was the reason for not using the most recent MRS or ACF pre-approved alternative methodology? Describe: 4.3.3 Tiered rates, differential rates, and add-ons Lead Agencies may establish tiered rates, differential rates, or add-ons on top of their base rates as a way to increase payment rates for targeted needs (e.g., a higher rate for serving children with special needs). a. Does the Lead Agency provide any rate add-ons above the base rate? [x] Yes. If yes, describe the add-ons, including what they are, who is eligible to receive the add-ons, and how often are they paid: Accredited providers: The Ohio Department of Children and Youth (DCY) maintains a list of approved accrediting organizations and providers receive an additional 10 percent in their payment. The 10 percent is added to the provider's rate or the state rate whichever is lower. Child care centers and family child care homes are eligible for this add on. Non-Traditional Hours: Child care that takes place during non-traditional hours (care provided between 7pm and 6am weekdays, 12am Saturday and 6 am Monday, and on the following holidays: New Year's Day, Martin Luther King Jr. Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day is paid an additional 5 percent when any non-traditional hours of care are provided. Child care centers, family child care homes, and In-home aides are eligible for this add on. Special Needs: Providers who care for a child that the caretaker and the county agency have identified as having special needs will be paid an additional 5 percent of the provider's rate or the state rate whichever is lower. Special needs child care" means child care provided to a child who is less than eighteen years of age and either has one or more chronic health conditions or does not meet age appropriate expectations in one or more areas of development, including social, emotional, cognitive, communicative, perceptual, motor, physical, and behavioral development and that may include on a regular basis such services, adaptations, modifications, or adjustments needed to assist in the child's function or development, Child care centers, family child care, in-home aides and day camps are eligible for this add on. Providers who must make special accommodations to care for the child, the caretaker and the provider may apply for a special needs payment enhancement so that the provider may receive additional payment enhancements as outlined by DCY and may receive twice the provider's rate or the state rate whichever is lower. Providers who are approved for this enhanced rate are child care centers and family child care homes. The child care payment system has the ability to issue payments to providers daily, most providers are paid once a week. Step Up To Quality: Step Up To Quality (SUTQ) is the State’s tiered quality rating and improvement system which recognizes providers operating above health and safety standards. There are three levels providers can earn. Child Care Centers serving more than 25 percent of children through the publicly funded child care program are required to participate in SUTQ. All other licensed providers are exempt but may voluntarily participate. Participating programs earn an additional 10 percent to 25 percent per child above the base rate. [ ] No. b. Has the Lead Agency chosen to implement tiered reimbursement or differential rates? [x] Yes. [ ] No. Tiered or differential rates are not implemented. If yes, identify below any tiered or differential rates, and, at a minimum, indicate the process and basis used for determining the tiered rates, including if the rates were based on the MRS or an ACF pre-approved alternative methodology. Check and describe all that apply: i. [x] Differential rate for non-traditional hours. Describe: A 5 percent enhancement is added to the base rate. Non-Traditional Hours is child care that takes place during non-traditional hours which is care provided between 7pm and 6am weekdays, 12am Saturday and 6 am Monday, and on the following holidays: New Year's Day, Martin Luther King Jr. Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day ii. [x] Differential rate for children with special needs, as defined by the Lead Agency. Describe: Programs serving children with special needs get a 5 percent enhancement on top of the base rate. If a program needs to make adjustments to its service delivery model to serve a child with special needs (i.e. add an extra staff member in the room, decrease group size in the room, etc.), the program can submit documentation to request a 100 percent enhancement to their base rate for services provided to that child. iii. [ ] Differential rate for infants and toddlers. Note: Do not check if the Lead Agency has a different base rate for infants/toddlers with no separate bonus or add-on. Describe: iv. [ ] Differential rate for school-age programs. Note: Do not check if the Lead Agency has a different base rate for school-age children with no separate bonus or add-on. Describe: v. [x] Differential rate for higher quality, as defined by the Lead Agency. Describe: Programs participating in Step Up TO Quality (SUTQ) receive enhanced rates in addition to their base rate according to their quality rating level. Bronze = 10 percent; Silver = 15 percent; Gold = 25 percent vi. [x] Other differential rates or tiered rates. For example, differential rates for geographic area or for type of provider. Describe: Ohio conducts a market rate survey through a third-party vendor to establish rates based on geographic area. This includes a breakdown into three clusters that include Ohio counties. Provider types include child care center, day camp, type A family child care provider, Ohio Department of Education (ODE) programs that have a publicly funded child care provider agreement, type B family child care provider. The payment rates are broken down into infant, toddler, pre-school, school-age and summer school-age rates. vii. If applicable, describe any additional add-on rates that you have besides those identified above. Accredited programs get a 10 percent enhancement to the base rate. Does the Lead Agency reduce provider payments if the price the provider charges to private-pay families not participating in CCDF is below the Lead Agency’s established payment rate? [x] Yes. If yes, describe: Provider payment rates are the lower of either Ohio's published rates for programs in the provider's county of location or the provider's customary rate to the public [ ] No. 4.3.4 Establishing payment rates Describe how the Lead Agency established payment rates: a. What was the Lead Agency’s methodology or process for setting the rates or how did the Lead Agency use their data to set rates? The Department of Children and Youth (DCY) used the latest market rate data to establish weekly rates established by age and geographic location as distributed through the cluster analysis. The Step Up To Quality (SUTQ) enhanced rates are then added to the base rate. Providers can elect to earn a Bronze, Silver or Gold rating which then moves rates from the 50th percentile to between the 55th and 90th depending on the rating, age of children served and location. b. How did the Lead Agency determine that the rates are adequate to meet health, safety, quality, and staffing requirements under CCDF? Ohio's rates are based on the most recent Market Rate Survey. Ohio pays enhanced rates to programs participating in Step Up To Quality (SUTQ) based on their quality rating level. The enhanced rates provide programs with additional funding to apply toward structural, staffing, and programming needs. c. How did the Lead Agency use the cost of care, either from the narrow cost analysis or the ACF pre-approved alternative methodology to inform rate setting, including how using the cost of care promotes the stabilization of child care providers? Ohio used the market rate survey, narrow cost analysis and a quality control process of matching survey results to verified program rate sheets to ensure the established rates were comparable to costs, which allowed for the additional investments to move the base rate from the 25th to the 50th percentile. Ohio also provided stabilization grants to providers over the last 18 months and realized almost a $3.00 per hour increase in the average wage for Early Childhood Professionals. This realized increase on the average wage is expected to help stabilize the early care and education workforce through the retaining of current staff and the opportunity to obtain additional qualified staff when appropriate. This data will continue to be monitored, along with turnover, to track provider trends, stabilization, and child access. d. How did the Lead Agency account for the cost of higher quality while setting payment rates? Ohio pays enhanced rates to programs participating in Step Up To Quality (SUTQ) based on their quality rating level. There are three levels providers can earn. Child Care Centers serving more than 25 percent of children through the publicly funded child care program are required to participate in SUTQ. All other licensed providers are exempt but may voluntarily participate. Participating programs earn an additional 10 percent to 25 percent per child above the base rate. e. Identify and describe any additional facts (not covered in responses to 4.3.1 – 4.3.3) that the Lead Agency considered in determining its payment rates to ensure equal access. Ohio built out workforce data over the past two years as one of the highest costs for child care businesses, like other companies, is payroll. As Ohio continues to invest in base rates the goal was to be able to track the workforce trends to ensure stabilization and access. Additionally, Ohio is evaluating how to further recruit and retain new professionals and this data will allow the state to realize when investments are making a difference.