equal-access-payment-rates

Reason(s) for non-compliance: • The Lead Agency's narrow cost analysis or estimated cost of care does not consider higher-quality care (as defined by the Lead Agency) to determine costs at higher levels of quality, as required by 98.45(f)(1)(ii)(B). (Plan Question 4.2.2d) • The Lead Agency's payment rates for infants in center-based care, infants in family child care homes, preschoolers in center-based care, and preschoolers in family child care homes are not sufficient to ensure equal access, as required by 98.45(a). (Plan Question 4.3.2a) Overall Target Completion Date: 10/31/2025 Action Step Number Action Step Description Target Completion Date 1 The Department of Children and Youth (DCY) made the following change to the provider payment process: 1. The base payment rates paid to providers were changed from the 35th percentile of the most recent market rate survey (MRS) to the 50th percentile of the most recent MRS on July 7, 2024. MRS Base rate calculations include age of child, geographic location and provider type. An additional percentage is added to the base rate dependent upon Step Up to Quality (SUTQ) rating. Bronze is an additional 10%, Silver an additional 15% and Gold an additional 25%. 07/07/2024 2 DCY will file for an amendment of the current CCDF State Plan to reflect the changes made in July 2024. 03/01/2025 3 An updated MRS was completed in 2024 which provided additional data regarding geographic location using urban and rural as categories. This information will be used in the process to determine costs at all levels of quality and inform provider payments. Rates will be adjusted based on the 2024 MRS in October 2025. 10/31/2025