SR 10-12 Dated 03/10 |
STATE OF NEW HAMPSHIRE
INTER-DEPARTMENT COMMUNICATION
DFA SIGNATURE DATE: |
February 24, 2010 |
DCYF SIGNATURE DATE: |
February 19, 2010 |
FROM: |
OFFICE OF THE DIRECTOR, DFA Terry R Smith OFFICE OF THE DIRECTOR, DCYF Maggie Bishop |
AT (OFFICE): |
Division of Family Assistance Division for Children, Youth, and Families |
TO: |
DFA Supervisors NHEP Teams |
SUBJECT: |
Child Care Scholarship Cost Share Increase; Cost Share Calculated Per Child Care Recipient; Only One Child Care Provider Receives Payment for a Child Care Recipient; and Elimination of Absentee Days; Unrelated Clarification to Provider Non-Payment for 90 Days |
EFFECTIVE DATE: |
March 1, 2010 |
RETROACTIVE EFFECTIVE DATE FOR ABSENTEE POLICY ONLY |
June 29, 2009 |
SUMMARY
This SR releases the following changes to the Child Care Scholarship Program:
· Percentage Increase in the Child Care Cost Share Calculation;
· The Child Care Cost Share will be Determined "Per Child" and not at the family level;
· Only one child care provider will be authorized to receive payment for each child care recipient at one time; and
· The termination of paid absentee days for certain Financial Assistance to Needy Families (FANF) recipients and recipients attending Strengthening Family Centers formerly known as Contract Child Care Centers.
This SR additionally releases an unrelated clarification to policy associated with provider non-payment for 90 days.
FORMER POLICY |
NEW POLICY |
Families determined eligible for child care scholarship were assigned a family cost share based on their monthly gross income and family size. The percentages were: Step 1 1% Step 2 5% Step 3 7% Step 4 10% Step 5 15% Step 6 18% Step 7 20% |
Children determined eligible for child care scholarship are assigned a cost share amount based on their family’s monthly gross income and family size. The percentages are: Step 1 5.25% Step 2 8.0% Step 3 10.5% Step 4 13.5% Step 5 16.5% Step 6 26.0% Step 7 27.0% |
The family cost share was assigned per family and then divided equally among the eligible children in the case. This amount was considered to be each child’s portion. For example:
The family cost share for Family #1 with two children before March 1 was $50.00. If only one child was eligible, the family paid a total of $50.00 split among that child’s providers; if both children were eligible then the $50.00 was split between the children first ($25 per child for a total of $50 for the family) and then the $25 per child was split between that child’s providers. |
Children determined eligible for child care scholarship are assigned a cost share based on the family’s monthly gross income and family size. For example:
The cost share for Family # 1 with two children on March 1 is $50.00 per child. If only one child is eligible, then the family pays $50 for that child. If both children are eligible, then the family pays a total of $100 ($50 per child). |
Families determined eligible for child care scholarship could use multiple child care providers at the same time for each of the eligible children in the case. |
Families determined eligible for child care scholarship can still use multiple child care providers for each eligible child in the case, but only one child care provider will be allowed to be assigned to each eligible child and only one child care provider will receive payment from the Department at a time. |
FANF financial assistance recipients were allowed to be paid for 10 absentee days in a 6-month period as were child care recipients who attended a Strengthening Family Center (Contract Child Care Centers). These absentee days were paid to the child care provider when the child was absent due to illness or family emergency. |
No absentee days will be paid for any child care recipient. The parent/guardian will be responsible for payment to the child care provider for days that the child is absent for any reason. |
BACKGROUND
Child care expenses have increased significantly since the release of CDB SR 09-17, Child Care Scholarship Program Redesign, effective 6/29/2009. The Child Care Scholarship Program is serving more children than funds allow and the cost per child has increased. Due to a budget deficit, child care expenses must be significantly reduced.
POLICY
The cost share is based on a percentage of the family’s gross income and the percentage used is based on the Step by which the family is eligible for NH Child Care Scholarship. The percentages have increased for all step levels as indicated in the table below.
Family Eligibility and Cost Share |
Step |
Eligibility Limits |
Percent of Family Income Assigned to Family Cost Share |
1 |
< 100% FPL |
5.25% |
2 |
>100% FPL but < 120% FPL |
8.00% |
3 |
>120% FPL but < 140% FPL |
10.5% |
4 |
>140% FPL but < 160% FPL |
13.5% |
5 |
>160% FPL but < 190% FPL |
16.5% |
6 |
>190% FPL but < 220% FPL |
26.0% |
7 |
>220% FPL but < 250% FPL |
27.0% |
The total cost share a family pays will be different for each family even if the family size and income are the same because it now depends on how many children in the family are eligible and receiving child care. Before March 1, there was no difference in cost share between families of the same income and family size, regardless of how many children were in child care. After March 1, families with two children in child care will pay double what a family with the same income and only 1 child in child care pays per week. Additionally, the cost share will now be calculated for each eligible child in the case receiving NH Child Care Scholarship, rather than having a "family cost share" divided equally between all the eligible children.
Example: Step 1 cost share is increasing from 1% to 5.25%. Before March 1, a family with two eligible children with an income of $600 incurred a total family cost share of $1.39 per week (based on the 1%). This family cost share was then divided by 2 (the number of eligible children in the family) to determine each child’s share. Before March 1, the child’s share would have equaled $0.70 per week.
As of March 1, however, a family with two eligible children with an income of $600 will incur a per child cost share of $7.27 each per week (based on 5.25%). If the family has one eligible child, the family will pay $7.27 per week; if the family has two eligible children, the family will pay a total of $14.54 per week for both children ($7.27 per child).
Before March 1, a total of 10 absentee days in a six month period were allowed for FANF financial assistance recipients and recipients attending the Strengthening Family Centers (formerly Contract Centers).
As of June 29 2009, no absentee days are paid for any child care recipient.
UNRELATED POLICY CLARIFICATION
When a provider link closes due to 90 days with no payment, the parent/guardian receives a 10-day advance notice during which they can submit a new Form 2530, Provider Verification Form, for the same provider or a new provider. The link can only be activated starting the day that the new Form 2530 is received and only services provided from that day forward are eligible for payment. The parent/guardian does not have 10 days beyond the end of the advance notice period to submit the new Form 2530. Once the case closes, at the end of the 10-day advance notice period, the case cannot be reopened. The parent must reapply and, if not receiving TANF cash benefit, be placed on the wait list, with wait list position determined by the date of the new application.
The Department cannot pay any of the back 90 days, however, if a Form 2530 is received within the ANP, they can bill for the same or new provider from that date forward.
NEW HEIGHTS PROCEDURES
New HEIGHTS has removed the term "Family Cost Share" from the Child Care Budget and Cost Share Worksheet screens and replaced the words with the term "Cost Share" because the cost share figure is calculated per child, not at the family level.
New HEIGHTS will calculate "Per Child Cost Share" for any week beginning March 1, 2010 forward. For weeks prior to March 1, 2010, the system will continue to calculate "Family Cost Share".
New HEIGHTS will ran all of the open child care cases through a mass change on February 22 & 23, 2010. New HEIGHTS will recalculate the cost share and apply it to each eligible child in the case.
The New HEIGHTS-generated AE0024, Change in Child Care Provider, was generated during the mass change and sent to all families and providers who have been affected by the changes.
As of April 1, New HEIGHTS will add an edit on the "Assign Child Care Provider Screen" which will prevent the Family Service Specialist or NHEP worker from adding more than one provider link to each eligible child at any given time.
POLICY MANUAL REVISIONS
Revised Family Assistance Manual Topics
PART 939 DETERMINING THE NH CHILD CARE SCHOLARSHIP PROVIDER REIMBURSEMENT AMOUNT
PART 943 PAYMENT FOR NH CHILD CARE SCHOLARSHIP PROVIDER SERVICES AND PROVIDER CO-PAY
Section 943.01 Cost Share and Provider Co-Pay
PART 947 PAYMENT FOR ABSENTEE DAYS
IMPLEMENTATION
All changes released in this SR are effective March 1, 2010 except the absentee policy, which is retroactively effective 6/29/2009.
CLIENT NOTIFICATION
On February 8, 2010, the Child Development Bureau (CDB) mailed a letter to all eligible child care clients and child care providers notifying them of the changes in the family cost share and that DHHS will only pay for one child care provider, per child, for child care assistance. This letter has been attached to this SR for reference.
On February 16, 2010, CDB mailed a letter to all eligible child care clients with multiple open child care providers assigned per child, notifying them that DHHS will only pay for one child care provider, per child, for child care assistance at a time. The parents/guardians are responsible for paying any additional child care providers. This letter has been attached to this SR for reference.
Parents/Guardians were instructed to call the hot line 1-800-852-3345 extension 8838 or 603-271-8838 (out of state) before March 18, 2010 to choose which provider will remain assigned to the child(ren). If they do not call, DHHS will close all but one child care provider per child.
New HEIGHTS generated an AE0024 mailed Feb 22 and 23, 2010 to clients and child care providers notifying them of their cost share increase and that the cost share is now per child. Clients will be advised of the changes to the Child Care Scholarship at the time of application or at redeterminations on or after March 1, 2010.
TRAINING
No special training is planned.
DISPOSITION
This SR may be destroyed or deleted after the contents have been noted and the revised manual topics have been 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 Manual, 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 March 29, 2010.
CDB/DM:s