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12. Child Care Assistance Reimbursement Rates
12.1 Child Care Market Rate Survey To ensure that CCA payment rates reflect the price of care in local markets, federal regulations require a market rate survey be conducted no earlier than two years prior to the effective date of the currently approved state plan. Regulations require states to certify that the payment rates for the provision of child care services are sufficient to ensure families receiving Child Care Assistance have equal access to comparable care purchased by private-paying parents.
DSS conducts a child care market rate survey prior to the submission of the state plan. Data from the market rate survey is critical in determining what level of payment may provide equal access to services. Factors considered when establishing rates include type of provider, geographic location, age of children and available funding.
12.2 Registered or Licensed Providers Payment to registered or licensed providers, on behalf of the family, can begin once the child(ren) has been approved and their entitlement period begins.
12.3 In-Home, Informal and Relative Providers Payment to informal, in-home and relative providers, on behalf of the family, can only begin after DSS has received all required provider paperwork.
12.4 Out of State Providers Out of state providers are reimbursed at the urban center rate for licensed centers and the urban family day care rate for registered family day cares.
12.5 Special Needs Rates Providers can be reimbursed at a higher rate to help cover additional costs for providing enhanced accommodations to care for a child with special needs. The provider must show they are using additional resources to meet the child’s needs.
Providers must complete a Special Needs Rate Justification form in order to receive a special needs rate. If a child has more than one provider, each provider must complete the form.
If a family is unable to find care at a typical child care program or the needs of the child require significant services beyond typical accommodations, the advanced special needs category may be used.
If insufficient documentation is provided to justify the request for a special needs rate, the family will receive a letter notifying them of this decision and can still be eligible at the regular rate. The family can submit additional documentation to justify the special needs rate at any time. If the rate is justified after the initial approval, the rate may be increased based on the date documentation was received.