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? Under initial tier eligibility copayments do not exceed 1% of Household income. Families' copayments are capped at less than 2%of household income while eligible for the 12-month graduated phase out. 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 2288.00 1.00 0.04 2780.00 25.00 0.89 2 3102.00 1.00 0.03 3769.00 35.00 0.92 3 3893.00 1.00 0.03 4758.00 44.00 0.92 4 4703.00 1.00 0.02 5748.00 53.00 0.92 5 5512.00 1.00 0.02 6737.00 62.00 0.92 c. What is the effective date of the sliding-fee scale(s)? 03/01/2026 d. Provide the link(s) to the sliding-fee scale(s): https://dss.sd.gov/docs/childcare/assistance/Sliding_Fee_Scale.pdf 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 Lead Agency respects the child care providers' status as a private business and recognizes that restricting their ability to collect additional amounts above the required co-payment could limit the number of providers participating in the CCA program, thereby compromising access for families; it could also limit the ability for the provider to provide special programming or transportation for children in their care. The Lead Agency continues to maintain Child Care Assistance reimbursement rates at the 75th percentile and modifies the co-payment sliding fee scale to support families whenever possible. The steps that CCS has taken, minimized the amounts that may be a potential difference to pay. This still promotes affordability while respecting providers and maintaining available 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: In responses collected through the most recent Market Rate Survey from providers participating in the subsidy program, 20% of providers responded that all families on assistance have a difference to pay; 15% said almost all have a difference to pay; 12% of providers responded that about half of the families in their program on assistance have a difference to pay. In addition, 28% of providers indicated that less than half of the families on assistance have a difference to pay; and 24% of providers said no families have a difference to pay. The amount that families may have as a difference to pay will vary based on the provider, cost of child care, any special programing, or transportation cost.