2.5 Promoting Continuity of Care

Lead Agencies must consider children’s development and promote continuity of care when authorizing child care services and must establish a minimum 12-month period for each child, both at the initial eligibility determination and redetermination. 2.5.1 Children’s development Describe how the Lead Agency’s eligibility, enrollment, reporting, and redetermination policies promote continuity of care in order to support children’s development. Child care benefits are approved for 12 months, and the certification period can be extended up to 15 months if a parent or caretaker lost employment or went on medical leave in the final months of their certification period. This allows the parent or caretaker to return to work or find new employment before needing to recertify their benefits. Parents or caretakers on medical leave from employment are allowed to certify or recertify their benefits. They are considered to have met the work requirements based on their current employment from which they are on medical leave. Reporting changes that would close benefits are limited to reporting income over the exit limit, moving out of state, and if there is no longer an eligible child or an eligible parent/caretaker in the ERDC group Notification of an upcoming ERDC renewal is sent to families 45 days prior to the renewal date to allow families time to schedule a renewal interview. This timeline allows the majority of ERDC renewals to be completed timely, limiting disruption to care. Parents can report when their children need a higher level of care than is typical. Once the need is verified, the Lead Agency will make additional payments to the provider on behalf of the child. The Inclusive Partners program also offers support and training for providers. These additional supports and payments allow providers to support the child's healthy development. Oregon's enrollment, change reporting, and renewal policies are designed to ensure that children can remain in a stable child care situation appropriate for children's developmental stages during unforeseen and temporary changes in household circumstances. 2.5.2 Minimum 12-month eligibility Lead Agencies must establish a minimum 12-month eligibility period for each child, both at the initial eligibility determination and at redetermination to support continuity in child care assistance and reduce barriers to families retaining eligibility. This requirement is: • Regardless of changes in income, Lead Agencies may not terminate CCDF assistance during the minimum 12-month period if a family has an increase in income that exceeds the Lead Agency’s income eligibility threshold but not the federal threshold of 85 percent of SMI; and • Regardless of temporary changes in participation in work, training, or educational activities. a. Does the Lead Agency certify that their policies or procedures provide a minimum 12- month eligibility period for each child at initial eligibility determination? [ ] Yes. [x] No. If no, describe: Oregon received a preliminary notice of potential non-compliance on July 24, 2023; this was sent as a result of monitoring findings. Oregon remains out of compliance in the following areas with a plan to come into compliance by a tentative planned date of April 2026: 1. Because Oregon backdates eligibility to support families from the first of the month in which a request for assistance is made, benefits may not always cover an entire 365 period from when eligibility is determined. Oregon plans to maintain this backdating policy as it is family-friendly, however our solution is to extend certifications to 15 months rather than 12 from the first of the month of the family's date of request. 2. The CCDF Final Rule added an additional clarification that Oregon has discovered a need to improve. Oregon does not currently approve a full twelve months of eligibility for additional siblings or children added to an ERDC case mid-certification; because Oregon determines eligibility on a per family basis, the child is added through the remainder of the eligibility period. This was not an area in which Oregon was able to request a waiver through the CCDF Final Rule, as it was stated that this was a clarification in policy rather than a change in policy requirements. Oregon is combining this policy change as well as the policy change previously listed to extend certifications out a full 15 months in the event of a new child being added to the case mid-certification, with a tentative release date of April 2026. Oregon utilizes an integrated eligibility system called ONE, which houses multiple self- sufficiency and safety net programs. This allows families to apply through a singular portal and application for multiple services. This also allows families to submit requests and changes for multiple programs at one time. Currently the ONE system does not yet have the capabilities built to coordinate eligibility and ensure each child receives 12 months of eligibility on a per-child basis. Changes to the ONE system will be required to implement this eligibility requirement as an element of the 2024 final rule, and Oregon is working to establish a plan for implementation. Any changes to the ONE system require working with other state agency partners that have programs in the integrated system. Oregon will remain out of compliance with the 12-month eligibility for both of the items listed above until the CR is completed (tentatively April 2026.) This will go in our appendix once it is available. b. Does the Lead Agency certify that its definition of “temporary change” includes each of the minimum required elements? 1. Any time-limited absence from work for an employed parent due to such reasons as the need to care for a family member or an illness. 2. Any interruption in work for a seasonal worker who is not working between regular industry work seasons. 3. Any student holiday or break for a parent participating in a training or educational program. 4. Any reduction in work, training, or education hours, as long as the parent is still working or attending a training or educational program. 5. Any cessation of work or attendance at a training or educational program not listed above. In these cases only, Lead Agencies may establish a period of 3 months or longer. 6. Any change in age, including a child turning 13 years old during the minimum 12-month eligibility period. 7. Any changes in residency within the State or Territory. [ ] Yes. [x] No. If no, describe: Oregon has already submitted evidence that we meet this requirement and therefore this question should still remain 'yes,', originally sent fall 2023, sent again winter 2024, and re-submitted August 2024. Marking as 'no' per federal request but should be corrected to 'yes.' c. Are the policies different for redetermination? [x] No. [ ] Yes. If yes, provide the additional/varying policies for redetermination: 2.5.3 Job search and continued assistance a. Does the Lead Agency consider seeking employment (engaging in a job search) as an eligible activity at initial eligibility determination and/or at the minimum 12-month eligibility redetermination? (Note: If yes, Lead Agencies must provide a minimum of 3 months of job search.) Check all that apply: i. [ ] Yes. The Lead Agency does consider seeking employment (engaging in a job search) as an eligible activity at initial eligibility determination. If yes, describe: ii. [ ] Yes. The Lead Agency does consider seeking employment (engaging in a job search) as an eligible activity at redetermination. If yes, describe: iii. [x] No. The Lead Agency does not consider seeking employment (engaging in a job search) as an eligible activity at initial eligibility determination or redetermination. b. Does the Lead Agency continue assistance during the minimum 12-month eligibility period when a parent has a non-temporary loss or cessation of eligible activity? [x] Yes. The Lead Agency continues assistance. [ ] No, the Lead Agency discontinues assistance. i. If no, describe the Lead Agency’s policies for discontinuing assistance due to a parent’s non-temporary change: ii. If no, describe what specific actions/changes trigger the job-search period after each such loss or cessation: iii. If no, how long is the job-search period where a family can continue assistance (must be at least 3 months)? c. The Lead Agency may discontinue assistance prior to the next minimum 12-month redetermination in the limited circumstances listed below. Check and provide the policy for all circumstances in which the Lead Agency chooses to discontinue assistance prior to the next minimum 12-month redetermination: i. [ ] Not applicable. ii. [ ] Excessive unexplained absences despite multiple attempts by the Lead Agency or designated entity to contact the family and provider, including the prior notification of a possible discontinuation of assistance. Provide the Lead Agency’s policy defining the number of unexplained absences identified as excessive: iii. [x] A change in residency outside of the State or Territory. Provide the Lead Agency’s policy for a change in residency outside the State or Territory: Benefits are closed at the end of the month following the report of the change in state residence as long as the change is reported before the 15th of the month. Changes reported after the 15th of the month do not take effect until the end of the following month. This policy can be found in Oregon Administrative Rule 414-175-0011: "(2) ERDC benefits may be terminated mid-certification only if one of the following occur: (a) There is no longer an eligible child or no longer an eligible caretaker in the need group pursuant to OAR 414-175-0020; (b) Benefits were determined in error; or (c) A Caretaker or Authorized Representative in the Need Group requests to terminate their ERDC benefits." iv. [x] Substantiated fraud or intentional program violations that invalidate prior determinations of eligibility. Provide the Lead Agency’s definition of fraud/intentional program violations that lead to discontinued assistance: While families are not issued an Intentional Program Violation, in instances where it is determined that the family never should have been eligible due to fraudulent information, the family’s case is closed mid-certification to not accrue overwhelming overpayments due back to the state. 2.5.4 Reporting changes during the minimum 12-month eligibility period Lead Agencies may only require families to report changes that impact a family’s eligibility, including only if the family’s income exceeds 85 percent of the SMI, taking into account irregular fluctuations in income, or there is a non-temporary change in the parent’s work, training, or education status, during the 12-month eligibility period. Lead Agencies may also require families to report that enable the lead agency to contact the family or pay providers, such as a new telephone number or address. Note: The response below should exclude reporting requirements for a graduated phase-out, which are described in question 2.5.5. Does the Lead Agency limit what families must report during the 12-month eligibility period to the changes described above? [x] Yes. [ ] No. If no, describe: 2.5.5 Policies and procedures for graduated phase-out of assistance at redetermination Lead Agencies that establish initial family income eligibility below 85 percent of SMI must provide a graduated phase-out of assistance for families whose income has increased above the Lead Agency’s initial income threshold at the time of redetermination but remains below the federal threshold of 85 percent of SMI. Lead Agencies that provide a graduated phase-out must implement a two-tiered eligibility threshold, with the second tier of eligibility (used at the time of eligibility redetermination) to be set at: (i) 85 percent of SMI for a family of the same size; or, (ii) An amount lower than 85 percent of SMI for a family of the same size but above the Lead Agency’s initial eligibility threshold that: (A) Takes into account the typical household budget of a family with a low income (B) Provides justification that the second eligibility threshold is: (1) Sufficient to accommodate increases in family income over time that are typical for workers with low incomes and that promote and support family economic stability (2) Reasonably allows a family to continue accessing child care services without unnecessary disruption At redetermination, a child must be considered eligible if their parents are participating in an eligible activity even if their income exceeds the Lead Agency’s initial eligibility income limit as long as their income does not exceed the second tier of eligibility. Note that once determined eligible, the child must be considered eligible for a full minimum 12-month eligibility period, even if the parents’ income exceeds the second tier of eligibility during the eligibility period, as long as it does not exceed 85 percent of SMI. A child eligible for services via the graduated phase-out of assistance is considered eligible under the same conditions as other eligible children with the exception of the co-payment restrictions, which do not apply to a graduated phase-out. To help families transition from child care assistance, Lead Agencies may gradually adjust co-payment amounts in proportion to a family’s income growth for families whose children are determined eligible under a graduated phase-out. Lead Agencies may require additional reporting on changes in family income but must still ensure that any additional reporting requirements do not constitute an undue burden on families. Check and describe the option that best identifies the Lead Agency’s policies and procedures regarding the graduated phase-out of assistance. a. [ ] Not applicable. The Lead Agency sets its initial eligibility threshold at 85 percent of SMI and therefore is not required to provide a graduated phase-out period. (If checked, skip to question 3.1.1.) b. [x] The Lead Agency sets the second tier of eligibility at 85 percent of SMI. If checked, describe the policies and procedures: Families may earn up to 85% SMI during their certification period and at recertification. i. [ ] Lead Agency adjusts the family’s co-pay during the graduated phase-out period. If checked, describe how the Lead Agency gradually adjusts co-payment for families under a graduated phase-out period in proportion to a family’s income growth. Include information on the percentage or amount of change made in the co-payment during graduated phase-out: ii. [x] Lead Agency requires additional reporting requirements during the graduated phase-out period. If checked, describe: Families must report if they earn above 85% SMI during their certification period and at recertification. c. [ ] The Lead Agency sets the second tier of eligibility at an amount lower than 85 percent of SMI for a family of the same size but above the Lead Agency’s initial eligibility threshold. If checked, provide the following information: i. Provide the income level ($/month) and the percent of SMI for the second tier of eligibility for a family of three: ii. Describe how the second eligibility threshold takes into account the typical household budget of a low-income family: iii. Describe how the second eligibility threshold is sufficient to accommodate increases in family income over time that are typical for low-income workers and that promote and support family economic stability: iv. Describe how the second eligibility threshold reasonably allows a family to continue accessing child care services without unnecessary disruption: v. [ ] Lead Agency adjusts the family’s co-pay during the graduated phase-out period. If checked, describe how the Lead Agency gradually adjusts co-payment for families under a graduated phase-out period in proportion to a family’s income growth. Include information on the percentage or amount of change made in the co-payment during graduated phase-out: vi. [ ] Lead Agency requires additional reporting requirements during the graduated phase-out period. If checked, describe: 3 Child Care Affordability CCDF subsidies make child care more affordable for eligible families, providing access to a greater range of child care options that allow parents to work, go to school, or enroll in training and they allow parents to access higher quality care options that better support children’s development. CCDF requires some families participating in CCDF to pay an affordable co-payment set by the Lead Agency to cover a part of their care. But co-payments can be a significant and destabilizing financial strain on family budgets and a barrier to parent employment, and the CCDBG Act requires that the co-payment amount not be a barrier to families participating in CCDF. Lead Agencies may not set parent co-payments above 7% of family income regardless of gradual phase- out policies and regardless of the number of children receiving assistance. Lead Agencies are encouraged to set co-payments much lower than 7% to make child care more affordable for more families and have broad flexibility to waive co-payments for to many participants. 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. In this section, Lead Agencies will identify how they determine an eligible family’s co-payment, the policies in place to waive or ensure co-payments are affordable for families, and how the Lead Agency improves access for children and families in economically and/or socially marginalized communities.