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). 1/1/2024 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)? Monthly rates divided by 4.3. 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) 1997.0 0 Per Month 48.66 464.42 80.00 1705.0 0 1755.0 0 1935.0 0 Family Child Care for Infants (6 months) 1809.0 0 Per Month 63.48 420.70 80.00 1650.0 0 1650.0 0 1750.0 0 Center Care for Toddlers (18 months) 1997.0 0 Per Month 51.15 464.42 80.00 1705.0 0 1755.0 0 1935.0 0 Family Child Care for Toddlers (18 months) 1809.0 0 Per Month 67.13 420.70 80.00 1650.0 0 1650.0 0 1750.0 0 Center Care for Preschool ers (4 years) 1500.0 0 Per Month 56.65 348.84 80.00 1270.0 0 1350.0 0 1450.0 0 Family Child Care for Preschool ers (4 years) 1466.0 0 Per Month 66.06 340.93 80.00 1275.0 0 1275.0 0 1365.0 0 Center Care for School- Age (6 years) 1100.0 0 Per Month 56.29 255.81 90.00 475.00 533.00 650.00 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 School- Age (6 years) 1150.0 0 Per Month 64.96 267.44 80.00 1000.0 0 1000.0 0 1000.0 0 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) 1350.0 0 Per Month 48.66 313.95 90.00 855.00 893.00 973.00 Family Child Care for Infants (6 months) 1067.0 0 Per Month 63.48 248.14 65.00 950.00 1000.0 0 1200.0 0 Center Care for Toddlers (18 months) 1350.0 0 Per Month 51.15 313.95 90.00 855.00 893.00 973.00 Family Child Care for Toddlers (18 months) 1067.0 0 Per Month 67.13 248.14 65.00 950.00 1000.0 0 1200.0 0 Center Care for Preschool ers (4 years) 1020.0 0 Per Month 56.65 237.21 90.00 680.00 730.00 860.00 Family Child Care for Preschool ers (4 years) 933.00 Per Month 66.06 216.98 79.00 750.00 850.00 860.00 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 School- Age (6 years) 860.00 Per Month 56.29 146.28 90.00 200.00 200.00 270.00 Family Child Care for School- Age (6 years) 800.00 Per Month 64.96 186.05 78.00 700.00 750.00 750.00 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: Baby Promise Program Providers who are subcontracted with the local CCR&R receive additional funds each month for each child enrolled in a Baby Promise slot during the 12-month contractual period. The additional funds provide for food, formula, diapers, wipes, and any other supplies provided to families for the care of their infant/toddler. In addition to supplies the additional funding makes up the yearly estimated cost of care for an infant/toddler in a high-quality full day, full year program. For the Baby Promise Program add-on rates vary between geographic area (Coastal southern Oregon, central Oregon, and Multnomah County (northern central Oregon). The rates also differ between provider type (family home care, center care, and license exempt care (such as Head Start). Children who qualify for the ERDC special needs rate may also qualify for an add-on amount called the High Needs Rate. The High Needs Rate is determined through an individualized assessment of the child’s needs for additional supports in child care as compared to same aged peers. The supplement is paid to the provider with the intention that it will be used to fund additional accommodations, staffing or training recommended by the Inclusion Specialist that completed the assessment. It is re-evaluated annually, upon request or when additional needs are identified. [ ] 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. [ ] Differential rate for non-traditional hours. Describe: ii. [x] Differential rate for children with special needs, as defined by the Lead Agency. Describe: The infant rate is applied to older children with a documented special need. This is paid as a Special Needs Rate. Additionally, if a child requires a much higher than average level of care the High Needs rate is applied after an assessment is completed by Inclusive Partners. 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: Part of the additional monthly payment for Baby Promise includes funds for high- quality care. Licensed providers can receive a higher payment for full time care after they have received a 3-, 4- or 5-star rating in the state’s Quality -Recognition and Improvement System, known as Spark. Spark is currently being redesigned and the criteria for Spark incentive payment will be revised. vi. [ ] Other differential rates or tiered rates. For example, differential rates for geographic area or for type of provider. Describe: vii. If applicable, describe any additional add-on rates that you have besides those identified above. License-exempt providers can receive an enhanced rate of pay by taking additional classes. 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: The child care providers are asked to submit a billing with their payment rates each month. The system will issue a payment based on the maximum ERDC rate or the child care provider’s rate, whichever is lower. [ ] 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? Oregon rates were last set in January 2024 based on the 2022 Market Rate Study. At that time the majority of the rates were set at or above the 80th percentile. Reimbursement rates are subject to collective bargaining with the provider unions that represent licensed family child care and license-exempt family providers serving families receiving child care assistance. Oregon’s policies allow child care assistance to cover registration/enrollment fees. The Lead Agency also has the flexibility to cover any other mandatory fees, defined as fees required for the child to enroll in or continue attending care. b. How did the Lead Agency determine that the rates are adequate to meet health, safety, quality, and staffing requirements under CCDF? Reimbursement rates are subject to collective bargaining with the provider unions that represent licensed family child care and license-exempt family providers serving families receiving child care assistance. Their input and advocacy directly impact the percentile(s) to which rates are set based upon the last Market Rate Study. The rates are set at or above the 75th percentile of the Market Rate Study to ensure that rates adequately account for health, safety, quality, and staffing requirements under CCDF. 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? Oregon is in the process of moving toward the use of an alternative rate methodology rate-setting structure, however at this time, rates are still negotiated with child care provider unions via the collective bargaining process based upon the most recent Market Rate Study (2022). The narrow cost analysis (results available at https://www.oregon.gov/delc/about-us/pages/state- plans.aspx) is compared to rates via the Market Rate Study. d. How did the Lead Agency account for the cost of higher quality while setting payment rates? The Lead Agency offers incentive payments to child care providers participating in Spark, Oregon’s QRIS, at a three-star rating or higher. The payments are per child per month for any child receiving ERDC subsidy full-time at that program: Star Rating………………￿.Amount 3…………………………………$54 4…………………………………$72 5…………………………………$90 In addition, providers may receive quality payments for registration/enrollment fees, for High Needs payments as assessed by the Inclusive Partners program for children with disabilities, and for the cost of caring for infants and toddlers via the Baby Promise program. 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. N/A