938 Family Cap Amount, Cost Share and Provider Co-Pay SR 22-34 Dated 10/22

All families must contribute to the cost of child care. The family cap and family cost share are determined by DHHS.  The family's cost share is calculated based on a percentage of the family’s gross income in relation to Federal Poverty Guidelines (FPG). The percentage used is based on the income Step level by which the family became eligible for NH Child Care Scholarship. The family cap amount and family cost share amounts are different for each family.

The family cap and family cost share is amounts are calculated at initial application and redetermination. On the day of initial application or redetermination, the family cap and family cost share are the same; however, the family cost share may decrease or increase during the eligibility certification period, based on changes to the family’s income, but the family cost share will never exceed the family cap. The family cap is the maximum cost share a family will pay during their current 12-month eligibility period. During the entire 12-month eligibility period, the family cap will remain the same.

The family cost share is divided equally amongst all eligible children who are linked to an DHHS-enrolled child care provider. Each child has their own child cost share. The child’s cost share is the amount the Department has determined the family owes the child care provider as their contribution towards the cost of child care. The child’s cost share is deducted from the NH weekly standard rate or the provider’s actual charge, whichever is less. The provider has the option to choose whether to charge the family just the cost share (parent’s required contribution by DHHS), an additional co-pay (the difference between what DHHS pays and the child care provider charges) or both.  It is the family’s responsibility to ask the child care provider how much their child care services will cost each week.

During 12-month eligibility, if the family is in Continued  Assistance and reengages in an approved activity during the 92-calendar day period, the family cost share is recalculated, but will not go higher than the family cap determined at the most recent 12- month eligibility certification period.

 

Initial Family Eligibility and Family Cap (Based on Income)

Step

level

Eligibility Limits

(FPG)

Percent of Family Income

Assigned to Cost Share

1

< 100% FPG

4.75%

2

>100% FPG but < 120% FPG

7.5%

3

>120% FPG but < 140% FPG

10.0%

4

>140% FPG but < 160% FPG

12.5%

5

>160% FPG but < 190% FPG

14.0%

6

>190% FPG but < 220% FPG

17.0%

Redetermination Graduated Phase Out and Family Cost Share (Based on Income)

7

>220% FPG but < 250% FPG

20.0%

 

“family cap” means the maximum family cost share in a 12-month eligibility period. Once calculated, the family cap amount will remain the same throughout the current 12-month eligibility certification period with the exception of initial determination or redetermination of job search.

“family cost share” means a DHHS determined percentage of  family's gross income and Step level by which the family is determined eligible for NH Child Care Scholarship.  This represents the amount that families are required to contribute for child care services based on Step level and income, which may decrease or increase during the current 12-month certification eligibility period. The family cost share will never exceed the family cap during the current 12-month eligibility certification period.

“child cost share” means a family with more than one child eligible for NH Child Care Scholarship, who will have the family cost share amount divided equally among all the eligible children linked to an enrolled child care provider.

“weekly standard rate” means a DHHS determined rate used to calculate a child care scholarship.

 “co-pay” means the difference between what the provider's charge and the NH weekly standard rate. It only occurs when the provider's charge is greater than the NH weekly standard rate. There is no co-pay when the provider's charge is less than the NH Weekly Standard Rate. The provider may choose whether to charge families for this difference. Families are responsible for paying this difference, if charged, directly to the child care provider in addition to their cost share.

 

References: He-C 6910.18, RSA 161:2,XII, RSA 167:83,II, 45 CFR 98.42