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? 7% 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 1704.00 60.00 4.00 6455.00 180.00 3.00 3 2153.00 60.00 3.00 7973.00 180.00 2.00 4 2601.00 60.00 2.00 9492.00 180.00 2.00 5 3049.00 60.00 2.00 11011.00 180.00 2.00 c. What is the effective date of the sliding-fee scale(s)? January 1, 2023 d. Provide the link(s) to the sliding-fee scale(s): Family Copayments for CCSP: https://www.childcare.virginia.gov/home/showpublisheddocument/53751/63848426005 3370000 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: Preventing providers from charging subsidy families their market rate may limit the number of providers that participate in the subsidy system. Allowing providers to charge families above the state payment rates ensures a wider range of providers for families to choose, though may have a reduced impact on affordability. 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 the most recent provider survey, 34% of CCSP-participating sites indicated that their tuition rates are higher than Virginia’s maximum reimbursement rates (MRR) for some or all ages. Of those 392 sites, 50% (191) indicated that they collect some or all of the difference. Among those, about 76% (~145) have tuition rates that are actually higher than the MRR for one or more age groups. Based on this data, VDOE expects that the extent to which providers are charging additional amounts to families is fairly minimal. The median additional amounts, assuming providers charge the full difference, are relatively low; a median difference of $55/week for center-based infant care, $70/week for center-based toddler and preschool care, and $50/week for center-based school-age care. For home-based programs, the median difference is $45/week for infant and toddler care and $67.50/week for preschool and school-age care. This is based on data from 133 centers and 12 FDHs that (a) indicated they charged families the difference between the MRR/their tuition rates on the 2023 Provider Survey and (b) reported tuition rates in LinkB5 that were higher than the MRR for at least one age group.