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? Oregon passed legislation in 2021 through House Bill 3073 which limited copays to no more than 7% of a family’s income. 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 2 1763.00 5.00 0.28 3524.99 10.00 0.28 3 2221.00 5.00 0.23 4441.99 15.00 0.34 4 2680.00 5.00 0.19 5358.99 20.00 0.37 5 3138.00 5.00 0.16 6274.99 25.00 0.40 c. What is the effective date of the sliding-fee scale(s)? 03/01/2025 d. Provide the link(s) to the sliding-fee scale(s): https://www.oregon.gov/delc/programs/pages/copays- billing.aspx?utm_source=ODHS&utm_medium=egov_redirect&utm_campaign=https%3A %2F%2Fwww.oregon.gov%2Fdhs%2Fassistance%2Fchild- care%2Fpages%2Fcopayments.aspx 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: The child care rates are set roughly at the 80th percentile of the most recent Oregon Market Price Study (2022). This, in combination with the highest copay being set at 2.6% of a family’s income, means that families have at least an additional 4.4% of their income that can be put toward child care costs before it is considered above the definition of 7% being affordable child care. A family of 2 with their income just above the threshold for the highest copay tier would have $3,833 in income and a $100 copay. If they had a preschool aged child in the highest costing care in Oregon (a Certified Centers in Rate area A) would qualify for $1,500 based on the maximum rates ($1,400 subsidy + $100 copay). The family would still have $168.31 they could put toward the cost of care and remain at no more than 7%. This would allow the family to have access to over 90% of all available child care slots in their area. This family’s income could increase by $1327.99 per month and they would not see an increase in copay. Child care providers are private businesses, therefore the Lead Agency cannot tell them whether or not they can charge above subsidy rates for families. This has always been the case in Oregon. Any difference in the provider's price and the subsidy amount is negotiated between the provider and the family; they may choose to offer the family a scholarship and waive this amount, but if they do not, the state does not involve itself in these arrangements. Limiting providers' ability to charge above the subsidy amounts would result in fewer providers being willing to accept subsidy payments at all, inhibiting upon parent choice and access to a broad range of child care options. 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: Complete data is not available. Providers are instructed to complete their billings with their actual charges, but often they complete the billing with the ERDC maximum amount, not reporting additional charges. Providers have the option of charging additional amounts to families. The 2022 Rate Area Report conducted by Oregon Child Care Research Partnership (OCCRP) reported the following: In Oregon, current licensed rate maximums [subsidy reimbursement rates] are adequate to purchase approximately 65% of toddler slots statewide. Of the 9,081 toddler slots in market care statewide, 5,906 are at facilities that charge prices at or below the current licensed rate maximums. This also varies by type of care with the current maximum rate able to purchase 68% of slots for small home-based, 62% of slots for centers, and 72% of slots for large home-based care. Toddler prices are used as they were found to be closest to the combined price, and most representative of all age group prices. Toddler prices were also used as the basis for grouping price data in previous studies.