SR 09-17 Dated 06/09

STATE OF NEW HAMPSHIRE

INTER-DEPARTMENT COMMUNICATION

SUMMARY

This SR releases various changes associated with the NH Child Care Scholarship Program, formerly referred to as Child Care assistance. The redesign of this program includes:

·   the redesign of child care age categories. Formerly the age categories included "Under 3" and "3 or Over." Now the categories are defined as follows:

-   Infants: birth to 17 months;

-   Toddlers: 18 to 35 months;

-   Pre-School and Kindergarten: 36 to 78 months (6 ½ years); and

-   School age: 79 to 155 months (up to the day before the child’s 13th birthday).

·   the reclassification of child care provider types and the elimination of the term "Contract Child Care Centers" Now the provider types are as follows:

-   Licensed Child Care Center;

-   Licensed Family Child Care;

-   License-Exempt Family, care for three or fewer children; and

-   License-Exempt Center, including school-based after-school programs, and recreation programs.

·   A change from an hourly or daily unit of payment to a weekly payment schedule, running Monday to Sunday, as well as new criteria for determining the NH Child Care Standard Rate which continues to be based on the child’s age and provider type, but now also incorporates the authorized level of service, full, half, or part-time, as released in SR 09-09, dated April, 2009. In two-parent families, this authorized level of service will always be based on the parent whose work schedule requires the least amount of child care services. For example, if Parent 1 works part-time and Parent 2 works full-time, the child's authorized level of service will be designated as part-time.

·   the introduction of the new terms "family cost share" and "child cost share," formerly referred to as "co-pay." The family or child cost share is the amount the Department has determined to be the family’s or child’s contribution towards the cost of child care. The family’s cost share is based on a percentage of the family’s gross income and the percentage used is based on the income Step via which the family is eligible for NH Child Care Scholarship. As such, the cost share will be different for each family. The family’s cost share is then divided by the number of children in the family receiving NH Child Care Scholarship; this final amount is considered to be each child’s cost share to be paid to each child’s child care provider. The family’s cost share amount is not bound by an advance notice period (ANP). With the exception of families newly opening for NH Child Care Scholarship, changes in a family’s cost share are effective the following Monday, with no ANP, unless the change occurs on a Monday, at which point it is effective that same day.

·   the redefined term "co-pay," now means the amount the provider may or may not choose to charge families over and above the NH Child Care Standard Rate.

·   -the new provision that families income-eligible for NH Child Care Scholarship at Step 6 or 7 can only receive a scholarship if their child or children receive services from a Licensed Child Care Center or Licensed Family Child Care provider. If the Step 6 or 7 family’s child or children receive child care services from a License-Exempt Family or License-Exempt Center provider, the NH Child Care Scholarship will either terminate or deny.

·   the additional new provision that a child or children under the age of 79 months, regardless of the family’s Step level, cannot receive NH Child Care Scholarship if the child or children receive services in a License-Exempt Center.

·   new weekly payments of the disability differential. Rather than providers receiving an additional $4 a day for caring for children with disabilities, the disability differential will now be a set weekly figure based on the parent’s/guardian’s authorized service level of full, half, or part-time.

·   when a provider is not paid by the Department for provision of child care services for a period of 90 days, the NH Child Care Scholarship for the family for that provider only will be automatically terminated. If, however, the family’s child or children are only linked to this specific provider who has not been paid by the Department for 90 days, then the NH Child Care Scholarship for the family will terminate at the end of the 10-day ANP.

·   the elimination of an ANP for families moving from a lower to a higher income level Step.

The following forms and their associated instructions were revised as a result of these policy changes:

·   revised DFA Form 757, How Your Benefits Will Change When You Go To Work; and

·   revised DFA Form NHEP800CC, NHEP Application for NH Child Care Scholarship.

BACKGROUND

The Child Development Bureau is making extensive changes to the administration of the NH Child Care Scholarship program to conform to mandates described in 45 CFR 98.42 and the Child Care Development Fund’s 2008-2009 Federal Plan.

POLICY

The NH Child Care Scholarship program, formerly referred to as Child Care assistance, has been redesigned as follows:

·   There are now four child care age categories:

-   Infants: birth to 17 months;

-   Toddlers: 18 to 35 months;

-   Pre-School and Kindergarten: 36 to 78 months (6 1/2 years); and

-   School age: 79 to 155 months (up to the day before the child’s 13th birthday).

·   There are now four child care provider types:

-   Licensed Child Care Center;

-   Licensed Family Child Care;

-   License-Exempt Family, caring for three or fewer children; and

-   License-Exempt Center, including school-based after-school programs, and recreation programs.

·   The NH Child Care Standard Rate continues to be based on a child’s age and provider type, but now also incorporates the authorized level of service of full, half, or part-time, as released in SR 09-09, dated April, 2009. In two-parent families, this authorized level of service will always be based on the parent whose work schedule requires the least amount of child care services. For example, if Parent 1 works part-time and Parent 2 works full-time, the child's authorized level of service will be designated as part-time. Additionally, the rates will be on a weekly payment schedule, running Monday to Sunday, rather than an hourly schedule with a daily rate. The charts below list the new weekly rates:

§   The term family or child cost share, formerly known as co-pay, means the amount the Department has determined families and children owe to their child care provider as their contribution towards the cost of child care. The family’s cost share is based on a percentage of the family’s gross income, and the percentage used is based on the income Step level by which the family became eligible for a scholarship. This means the family cost share will be different for each family.

The family’s cost share amount is not bound by an ANP; if a change occurs in the household which impacts the family cost share amount, the change will occur with no ANP. With the exception of families newly opening for NH Child Care Scholarship, changes in a family’s cost share are always effective the following Monday, unless the change occurs on a Monday, at which point it is effective that same day.

The chart below lists the percentages by Step level used in the family cost share determination process:

Families with more than one child eligible for NH Child Care Scholarship will have the family cost share amount divided equally among all the eligible children enrolled with approved providers. This family cost share, once it is divided by the number of children in the family, is then referred to as the child’s cost share. Finally, if an individual child has more than one provider, the child’s cost share is then divided equally among the approved providers.

Example 1:

Family 1, household size of 2, and Family 2, household size of 3, both have $1,700 monthly gross income. This places Family 1 at Step 3 income eligibility and Family 2 at Step 2 income eligibility for NH Child Care Scholarship. Family 1’s cost share will be $27.48 per week ($1,700 x 7% = $119/4.33 = $27.48) and Family 2’s cost share will be $19.63 per week ($1,700 x 5% = $85/4.33 = $19.63). Since Family 2 has two children, their $19.63 weekly cost share is divided by 2, making each child’s cost share $9.81 a week. If Child A in Family 2 has two separate providers, and Child B has 1 provider, Family 2’s weekly child cost share to each provider for Child A is $4.90 a week, while the weekly child cost share for Child B is $9.81.

Note: It is possible that families may be eligible for NH Child Care Scholarship based on income and family size, but have a family cost share higher than the NH Child Care Standard Rate for their child and type of care they are using. In this case, the family is eligible for a scholarship, but will not receive a child care benefit. The family will be responsible for the full payment for child care.

§   The redefined term "co-pay" means the amount the provider may or may not charge the family over and above the NH Child Care Standard Rate. So if the provider’s private pay rate for child care services is higher than the NH Child Care Standard Rate, the provider may charge the parent the difference between the private pay rate and the NH Standard Rate. This is the "co-pay." Child care providers may choose to charge, or not charge, this additional co-pay amount to families receiving NH Child Care Scholarship, but providers cannot charge families receiving NH Child Care Scholarship a co-pay more than the weekly rate charged to private pay families. If the provider chooses to charge the family for this co-pay, the family is responsible for paying the state-indicated cost share, the provider indicated co-pay, and any other additional fees that the provider may charge.

Example 2:

Using Example 1 above, the providers for Family 1 or Family 2 could still choose to charge the family a co-pay. Assume the following: Child A in Family 2 above is age 16 months, the child is authorized for half-time service with each provider, the first provider for Child A charges $250 a week to their private pay clients for half-time care and the second provider for Child A charges $200 a week to their private pay clients for half-time care, and both providers are Licensed Child Care Centers. The NH Child Care Standard Rate is $144.72 for half-time child care services for a 16 month old in a Licensed Child Care Center. Provider 1 could charge the family an additional co-pay of $100.38 a week ($250 - $144.72 - $4.90) and Provider 2 could charge the family an additional co-pay of $50.38 a week ($200 - $144.72 - $4.90).

§   Families income-eligible for NH Child Care Scholarship at Step 6 or 7 can only receive a scholarship if their child or children receive services from a Licensed Child Care Center or Licensed Family Child Care provider. If the family’s child or children receive child care services from a License-Exempt Family or License-Exempt Center provider, the NH Child Care Scholarship will either terminate or deny.

§   Children under the age of 79 months, regardless of the family’s Step level, cannot receive NH Child Care Scholarship if the child or children receive services in a License-Exempt Center.

§   The payment differential rate for providers caring for children with disabilities is now paid weekly as follows:

-   $15 per week for part-time;

-   $30 per week for half-time; and

-   $50 per week for full-time.

§   When a provider is not paid by the Department for provision of child care services for a period of 90 days, the NH Child Care Scholarship for the family for that provider only will be automatically terminated. If, however, the family’s child or children are only linked to this specific provider who has not been paid by the Department for 90 days, then the NH Child Care Scholarship for the family will terminate at the end of the 10-day ANP.

§   Although a NOD will be generated when a family changes a step level, no ANP will be provided for families moving from a lower income level Step to a higher Step.

NEW HEIGHTS SYSTEMS PROCEDURES AND IMPLEMENTATION

New HEIGHTS has updated the system with the policies released in this SR, including the new provider titles and service restrictions, age categories, and ANP parameters, effective June 29, 2009. A mass change will be run on June 29, 2009 for all assistance groups currently receiving NH Child Care Scholarship to recompute child care Step levels for open child care cases that are currently eligible for previously existing Steps 1, 2, or 3. All currently open cases that experience a change in their Step Level will receive a Notice of Decision indicating their newly computed Step.

Changes were made to New HEIGHTS-generated AE0024, Change in Child Care Provider, to additionally indicate the family’s cost share. For 45 days following the implementation of the new policy, special text will be included on the client version of the AE0024 to help explain the family cost share figure.

Recipients will be notified if there are changes to their child care scholarship in any of the following areas:

·   When a Provider Link begins or ends. Only those links dated within the last 6 months will be displayed;

·   Any income level Step changes; or

·   Cost Share changes.

The altered AE0024, both the client and provider version, will be released under separate cover at a later date by New HEIGHTS.

Additionally, a number of NH Child Care Scholarship eligibility screens in New HEIGHTS are changing to incorporate revised policy, including the:

·   "Child Care Service Level" screen;

·   "Assign Child Care Provider to Child" screen;

·   "Child Care Elig Determination Budget" screen; and

·   "Child Care Response" screen.

New screens that were created in New HEIGHTS to address revised policy are the:

·   "Cost Share Information" screen. This new view-only screen displays the results of the eligible children’s cost share for each provider to which the children are linked; and

·   "Cost Share Worksheet" screen. This screen was designed for worker use only, to display how a child’s individual cost share might be impacted if certain child care characteristics are changed.

New failure messages were created as follows:

·   To be populated on the notice generated when a family’s NH Child Care Scholarship is ending due to provider non-payment for a period of 90 days, and this provider is the family’s only child care provider: YOUR CHILD CARE CLOSED BECAUSE YOUR CHILD CARE PROVIDER HAS NOT BEEN PAID WITHIN THE PAST 90 DAYS. IF YOU STILL NEED CHILD CARE ASSISTANCE, YOU MUST REAPPLY FOR CHILD CARE SCHOLARSHIP AT THE LOCAL DISTRICT OFFICE.

·   To be populated on the notice generated to Step 6 or 7 families whose NH Child Care Scholarship is impacted based on the type of child care provider chosen by the family: YOUR CHILD CARE WAS DENIED/CLOSED BECAUSE YOU ARE USING A LICENSE-EXEMPT CHILD CARE PROVIDER. FAMILIES WITH INCOME OF 191-250% OF THE FEDERAL POVERTY LEVEL MUST USE A LICENSED CHILD CARE PROVIDER TO BE ELIGIBLE FOR THE NH CHILD CARE SCHOLARSHIP. IF YOU NEED HELP FINDING LICENSED CHILD CARE, CONTACT YOUR LOCAL CHILD CARE RESOURCE AND REFERRAL AGENCY AT WWW.NHCCRR.ORG.

No new failure message was created for families with children under the age of 79 months who receive services in a License-Exempt Center, because New HEIGHTS was programmed to make it impossible to choose this type of facility for this age group.

New HEIGHTS will now also automatically update service level authorizations for school-age children only from half or part-time to full-time at the start of school vacations. This authorization will automatically return to the previously authorized service level at the end of vacations. The calendar for the entire state is set as follows:

·   The 3rd through 5th weeks of February;

·   The 3rd through 5th weeks of April;

·   The 3rd week of June through the 1st week of September; and

·   The 3rd through 5th weeks of December.

DESCRIPTION OF REVISIONS MADE TO FORMS

The following forms have been revised as detailed below:

·   DFA Form 757, How Your Benefits Will Change When You Go To Work, and its associated instructions, were revised to incorporate the NH Child Care Scholarship changes associated with this SR and SR 09-14, dated July, 2009. Additionally all references to "TANF" were substituted with "FANF" and the language was simplified to bring it closer to an eighth grade reading level. The current version of the Form can be used until the supply is exhausted, at which time the new version of the Form will be printed.

·   DFA Form NHEP800CC, NHEP Application for Child Care Scholarship, has been finalized. However, the test version of the form released in April 2009 with SR 09-09 can be used until the supply is exhausted. The changes made to this application during the finalization process include incorporating the changes released in this SR and eliminating text related to the Department recovering benefits received when the Department made a mistake processing the child care benefits. According to our Quality Assurance Unit, the Department is not allowed to recover benefits received erroneously due to a Department error; the Department can only recover child care benefits received erroneously due to client error. The paragraph was revised accordingly.

Both forms have been attached to this SR for reference. DFA Form 757 may be ordered by District Offices via the Quarterly District Office Forms Order. NHEP offices may order Form NHEP800CC via the NHES forms ordering process through the office website.

POLICY MANUAL REVISIONS

Revised Family Assistance Manual Topics

PART 900  NH CHILD CARE SCHOLARSHIP

PART 901  NH CHILD CARE SCHOLARSHIP APPLICATION PROCESS

Section 901.01  Completing an Application for NH Child Care Scholarship

PART 903 NH CHILD CARE SCHOLARSHIP APPLICATION PROCESSING TIME FRAME

PART 904  NH CHILD CARE SCHOLARSHIP AUTHORIZED LEVEL OF SERVICE

PART 909  CHANGES IN NH CHILD CARE SCHOLARSHIP

Section 909.01  Changes in NH Child Care Scholarship Due to Birthdays

PART 911  REDETERMINATION OF NH CHILD CARE SCHOLARSHIP

PART 919  AGE CATEGORIES FOR NH CHILD CARE SCHOLARSHIP

PART 929  PROVIDER QUALIFICATIONS FOR NH CHILD CARE SCHOLARSHIP

PART 937  NH CHILD CARE STANDARD RATE

PART 939  DETERMINING THE NH CHILD CARE SCHOLARSHIP PROVIDER

PART 941 NH CHILD CARE SCHOLARSHIP DISABILITY DIFFERENTIAL RATES

PART 943 PAYMENTFOR NH CHILD CARE SCHOLARSHIP PROVIDER SERVICES AND PROVIDER CO-PAY

Section 943.01  Family Cost Share and Provider Co-Pay

Note: Although FAM 901.01 and new FAM 904 are being released with SR 09-17, some of the policies described in these topics are associated with the release of SR 09-09, dated April 2009. Policy manual changes were not released with SR 09-09 in April so that all page changes could be incorporated in this July project.

IMPLEMENTATION

The changes released in this SR are effective June 29, 2009.

CLIENT AND CHILD CARE PROVIDER NOTIFICATION

Clients will be advised of their new income level Step and family cost share via a New HEIGHTS-generated notice, AE0024, issued as a result of the mass change on June 29,, 2009. This notice will be mailed to both the family and the family’s child care provider.

Two categories of child care providers, License-Exempt Family and License-Exempt Center, may experience a decrease in their reimbursement rate due to the program changes. This will be reflected on the AE0024 issued during the mass change on June 29,, 2009.

On June 8, 2009 a client letter was sent to all families who were on Step 3 prior to the June 29, 2009 mass change, notifying them about the upcoming changes to the NH Child Care Scholarship program. That letter has been attached to this SR for reference.

In addition, notification of the change in the NH Child Care Scholarship policy was published in the NH Rulemaking Register, Office of Legislative Services, on February 20, 2009. A public hearing on the amended Administrative Rules was held on March 14, 2009.

TRAINING

The DFA Training Unit provided training on the new child care scholarship requirements to all DO and NHEP staff during the week of June 22, 2009. The Child Development Bureau provided training on the new child care scholarship requirements from April through June for child care providers.

FORMS MANUAL POSTING INSTRUCTIONS

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 August 3, 2009. Additionally, this SR, and printed pages with posting instructions, will be distributed under separate cover to all internal hard copy holders of the Family Assistance and Forms Manuals.

DFA/KD:dm