SR 05-03 Dated 07/05

STATE OF NEW HAMPSHIRE

INTER-DEPARTMENT COMMUNICATION

 

DFA SIGNATURE DATE:

June 6, 2005

DCYF SIGNATURE DATE:

June 10, 2005

FROM:

OFFICE OF THE DIRECTOR, DFA Terry R Smith

FROM:

OFFICE OF THE DIRECTOR, DCYF Nancy L Rollins

AT (OFFICE):

Division of Family Assistance

Division for Children, Youth, and Families

TO:

DFA Supervisors

NHEP teams

 

SUBJECT:

Step 1 Child Care Reimbursement Rates for Children Receiving NHEP-Related Categorically-Needy Medical Assistance

EFFECTIVE DATE:

July 1, 2005

 

SUMMARY

 

This SR releases the availability of Step 1 child care reimbursement rates to children receiving NHEP-related categorically-needy medical assistance.

 

CURRENT POLICY

EXPANDED POLICY

Step 1 child care reimbursement rates are currently available to:

§   recipients of TANF financial assistance;

§   recipients of 12-month extended medical assistance (EMA) when eligibility for EMA is based on loss of TANF financial assistance due to new or increased earnings or hours of employment; and

§   NHEP participants in an on the job training program, for the duration of the program.

Step 1 child care reimbursement rates will now additionally be available to:

§   recipients of NHEP-related categorically needy medical assistance (MA); including

§   recipients of 12-month EMA when eligibility for EMA is based on loss of NHEP-related categorically-needy MA due to new or increased earnings or hours of employment.

 

POLICY

 

As long as all other child care eligibility requirements are met, Step 1 child care reimbursement rates are automatically provided to children receiving:

§   TANF financial assistance;

§   NHEP-related categorically-needy medical assistance (MA); and

§   12-month extended medical assistance (EMA) when eligibility for EMA is based on loss of TANF financial assistance or loss of NHEP-related categorically-needy MA due to new or increased earnings or hours of employment.

 

Additionally, participants in an NHEP on the job training (OJT) program will continue to receive step 1 child care reimbursement for the duration of the OJT contract.

Example: Mom and child #1 are receiving TANF financial assistance. Child #2 is SSI and receiving NHEP-related MA. Under former policy, all children were eligible for child care, but child #1 was automatically eligible for Step 1 child care reimbursement, while child #2 was reimbursed at Step 2 or Step 3 based on gross income. With this policy change, both children are now automatically eligible for Step 1 child care reimbursement.

 

NOTE: Because step reimbursement for child care assistance is determined based upon the child’s category of assistance and not the casehead’s category of assistance, cases in which the adult is open NHEP categorically-needy MA but the children are not, will not receive the Step 1 reimbursement rate.

 

Example: Mom and child are open NHEP Cash and child care with zero income. Child begins receiving unearned income of $1,500 a month, which causes the cash assistance case to close. Mom opens for NHEP categorically-needy MA and child opens for Healthy Kids. Since child care reimbursement is based on the child’s category of assistance, the child does not automatically receive Step 1 child care. Step eligibility is determined using gross income per FAM 915, PROGRAM CRITERIA.

 

FOOD STAMP PROGRAM DEPENDENT CARE DEDUCTION PROCEDURES

 

The amount of child care reimbursement the client receives from the Department affects the Food Stamp dependent care deduction used in food stamp eligibility and benefit calculations. Because NHEP-related categorically-needy MA recipients and 12-month EMA recipients who transitioned to EMA from NHEP-related categorically-needy MA will now become eligible for Step 1 reimbursement, FSS must review those cases that:

§   receive food stamps; and

§   claim a dependent care deduction.

 

The evening of June 28, 2005, New HEIGHTS will run a report to identify cases that meet the above criteria. District Offices will be provided with the report and additional instructions for processing these cases under separate cover soon after New HEIGHTS generates the report. When District Office staff receive the report and instructions, the unreimbursed obligation on the New HEIGHTS "Dependent Care Expenses" screen must be adjusted to reflect the new unreimbursed obligation at Step 1. Some clients may experience a decrease in or closing of food stamp benefits due to increased net earned income. These cases will be entitled to an advance notice period, per policy.

 

NEW HEIGHTS CHANGES

 

New HEIGHTS has been reprogrammed to begin allowing Step 1 child care reimbursement to NHEP-related categorically-needy MA recipients and 12 month EMA recipients whose NHEP-related categorically-needy MA closed due to new or increased earnings or increased hours of employment, as of July 1, 2005.

 

Additionally, New HEIGHTS will run a mass change to convert the current child care step to Step 1, effective July 1, 2005, for current:

 

§   NHEP-related medical assistance cases open for child care assistance; and

§   EMA recipients whose NHEP-related medical assistance closed due to new or increased earnings or increased hours of employment and who are open for child care assistance.

 

Converted cases will receive the following message on the notice generated during the conversion:

 

A CHANGE IN POLICY MEANS MORE FAMILIES RECEIVING CHILD CARE ASSISTANCE NOW QUALIFY FOR REIMBURSEMENT AT STEP 1, THE HIGHEST PAYMENT RATE. IF ANY OF YOUR CHILDREN NOW QUALIFY FOR THE HIGHER RATE, THE CHILD CARE SUMMARY SECTION OF THIS NOTICE SHOWS THE CHANGE FROM STEP 2 OR 3 TO STEP 1 AND WHEN THE NEW RATE BEGINS. IF YOU ALSO RECEIVE FOOD STAMPS AND CLAIM A DEPENDENT CARE DEDUCTION, THE NEW RATE COULD AFFECT THE OUT-OF-POCKET AMOUNT YOU PAY YOUR PROVIDER(S). THIS COULD CHANGE YOUR FOOD STAMP BENEFITS. IF IT DOES, YOU WILL GET A DIFFERENT NOTICE TELLING YOU HOW AND WHEN YOUR FOOD STAMP BENEFITS WILL CHANGE.

 

POLICY MANUAL REVISIONS

 

Revised Family Assistance Manual Topics

 

PART 915    PROGRAM CRITERIA

PART 939    DETERMINING THE ALLOWABLE RATE

Section 943.01    Required Co-Payment

 

IMPLEMENTATION

 

Changes identified in this SR are effective July 1, 2005 for current cases, and apply to any new cases processed on or after that date.

 

CLIENT NOTIFICATION

 

A public hearing was held on May 17, 2005 to discuss the changes released in this SR.

 

A one-time client mailing will also be sent in mid-June to all open NHEP cases with cash grants equal to or less than $100 a month who are also open for child care. The letter, attached for reference, alerts families of the expanded child care reimbursement policy.

 

In addition, the Child Development Bureau will notify all enrolled contract child care providers of the revised policy.

 

TRAINING

 

The changes released in this SR were discussed during the monthly Supervisor’s meeting on March 16, 2005 and will be reviewed at a policy remote training scheduled for June 16, 2005. Additionally a Question and Answer Session related to policy released in this SR is scheduled for July 21, 2005.

 

DISPOSITION

 

This SR may be destroyed or deleted after its contents have been noted and the revised manual topics released by this SR have been posted to the On-line manuals.

 

DISTRIBUTION

 

This SR will be distributed according to the electronic distribution list for Division of Family Assistance policy releases. This SR, and revised On-Line Manuals, will be available for agency staff in the On-Line Manual Library, and for public access on the Internet at http://www.dhhs.nh.gov/DHHS/DFA/LIBRARY, effective June 27, 2005.

 

This SR, and printed pages with posting instructions, will be distributed under separate cover to all hard copy holders of the Family Assistance Manual.

 

DFA/JBV:s