4.4 Payment Practices to Providers

Lead Agencies must use subsidy payment practices that reflect practices that are generally accepted in the private pay child care market. The Lead Agency must ensure timeliness of payment to child care providers by paying in advance or at the beginning of delivery of child care services. Lead Agencies must also support the fixed cost of child care services based on paying by the child’s authorized enrollment, or if impracticable, an alternative approach that will not undermine the stability of child care programs as justified and approved through this Plan. Lead Agencies must also (1) pay providers based on established part-time or full-time rates rather than paying for hours of service or smaller increments of time, and (2) pay for reasonable, mandatory registration fees that the provider charges to private-paying parents. These policies apply to all provider types unless the Lead Agency can demonstrate that in limited circumstances the policies would not be considered generally-accepted payment practices. In addition, Lead Agencies must ensure that child care providers receive payment for any services in accordance with a payment agreement or an authorization for services, ensure that child care providers receive prompt notice of changes to a family’s eligibility status that could impact payment, and have timely appeal and resolution processes for any payment inaccuracies and disputes. 4.4.1 Prospective and enrollment-based payment practices Lead Agencies must use payment practices for all CCDF child care providers that reflect generally- accepted payment practices of providers serving private-pay families, including paying providers in advance or at the beginning of the delivery of child care services and paying based on a child’s authorized enrollment or an alternative approach for which the Lead Agency must demonstrate paying for a child’s authorized enrollment is not practicable and it will not undermine the stability of child care programs. Lead Agencies may only use alternate approaches for subsets of provider types if they can demonstrate that prospective payments and authorized enrollment-based payment are not generally-accepted for a type of child care setting. Describe the Lead Agency payment practices for all CCDF child care providers: a. Does the Lead Agency pay all provider types prospectively (i.e., in advance of or at the beginning of the delivery of child care services)? [x] Yes. If yes, describe: When applications are approved, the payment is issued on the same day. Monthly, ongoing assistance is authorized two business days prior to the end of the month to allow financial institutions processing time for direct deposit. Payments are issued based on prospective eligibility for the upcoming month. More than 95 percent of all providers opt to receive payment by direct deposit. For providers who choose not to accept direct deposit, a check is issued prospectively and mailed to them. [ ] No, it is not a generally-accepted payment practice for each provider type. If no, describe the provider type not paid prospectively and the data demonstrating it is not a generally-accepted payment practice for that provider type, and describe the Lead Agency’s payment practice that ensures timely payment for that provider type: b. Does the Lead Agency pay based on authorized enrollment for all provider types? [x] Yes. The Lead Agency pays all providers by authorized enrollment and payment is not altered based on a child’s attendance or the number of absences a child has. [ ] No, it is not a generally-accepted practice for each provider type. If no, describe the provider types not paid by authorized enrollment, including the data showing it is not a generally-accepted payment practice for that provider type, and describe how the payment policy accounts for fixed costs: [ ] It is impracticable. Describe provider type(s) for which it is impracticable, why it is impracticable, and the alternative approach the Lead Agency uses to delink provider payments from occasional absences, including evidence that the alternative approach will not undermine the stability of child care programs, and thereby accounts for fixed costs: 4.4.2 Other payment practices Lead Agencies must (1) pay providers based on established part-time or full-time rates rather than paying for hours of service or smaller increments of time, and (2) pay for reasonable, mandatory registration fees that the provider charges to private-paying parents, unless the Lead Agency provides evidence that such practices are not generally-accepted for providers caring for children not participating in CCDF in its State or Territory. a. Does the Lead Agency pay all providers on a part-time or full-time basis (rather than paying for hours of service or smaller increments of time)? [x] Yes. [ ] No. If no, describe the policies or procedures that are different than paying on a part- time or full-time basis and the Lead Agency’s rationale for not paying on a part-time or full-time basis: b. Does the Lead Agency pay for reasonable mandatory registration fees that the provider charges to private-paying parents? [x] Yes. If yes, identify the fees the Lead Agency pays for: Initial registration fees (based on the median fee taken from the market rate study) are paid for a child attending licensed family or licensed center care. [ ] No. If no, identify the data and how data were collected to show that paying for fees is not a generally-accepted payment practice: c. Describe how the Lead Agency ensures that providers are paid in accordance with a written payment agreement or an authorization for services that includes, at a minimum, information regarding provider payment policies, including rates, schedules, any fees charged to providers, and the dispute-resolution process: The Lead Agency developed a Provider Guide for child care providers accepting CCDF child care subsidy payments. The Provider Guide contains information about the eligibility processes, payment policies, methods of payment, overpayments and the Lead Agency's appeals process. The guide also includes information about provider requirements, which include reporting changes through the Lead Agency's Provider Portal. The Provider Guide contains a resource page with web links to Administrative Rules, income and copayment tables and the monthly rate table. The Provider Guide must be signed by the provider during initial licensing inspections to be eligible to receive CCDF child care subsidy payments. Providers are given advance notice of substantial updates to the provider guide and must agree to the terms and conditions within the month following the announced changes. d. Describe how the Lead Agency provides prompt notice to providers regarding any changes to the family’s eligibility status that could impact payments, and such a notice is sent no later than the day that the Lead Agency becomes aware that such a change will occur: Providers have electronic access to the Lead Agency's Provider Portal https://jobs.utah.gov/childcare. The portal interfaces with the eligibility payment system and has immediate updates when case payment information changes. The portal includes a "children in care" screen, which lists all of the families attached to that provider and shows the current month and next month's payments at a glance. This helps providers to quickly identify changes and properly budget for future months. In addition, while protecting the privacy of families, providers may review the child care case details including the case review month, approved coverage hours, children in care and the breakdown of payment and copayment amounts per child. Additionally, transaction history and other reports may be downloaded. Providers may access the portal at any time to monitor the child care payment status and any changes in the amount of the payment. Providers are instructed to contact the Lead Agency's Provider Helpline if further information is needed. e. Describe the Lead Agency’s timely appeal and resolution process for payment inaccuracies and disputes: Providers can email or call the Lead Agency's Office of Child Care Provider Helpline for case status questions or payment concerns. The Provider Helpline generally responds to providers within two business days. The Provider Helpline coordinates with the Lead Agency's Eligibility Service Division to review payment issues and correct any errors. When an overpayment is in dispute, providers contact the Lead Agency's Collections Unit to resolve any disagreements or to file an appeal. An appeal must be filed within 30 days of the date of the notice of agency action. The Administrative Law Judge must issue a written decision within 60 days of the date the Lead Agency receives the hearing request. f. Other. Describe any other payment practices established by the Lead Agency: N/A 4.4.3 Payment practices and parent choice How do the Lead Agency’s payment practices facilitate provider participation in all categories of care? The Lead Agency supports equal access to a full range of providers by paying all provider types prospectively based on enrollment. Unless a check is requested, providers receive direct deposit at the beginning of each month. All providers have access to the Lead Agency’s Provider Portal to view case information and manage payments. Parents are not limited to choose providers who accept the state rates. This allows for flexibility and parental choice.