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eligibility determinations are made. Once a family is determined eligible, a state must periodically
determine eligibility, but there are not specific federal requirements for when those redetermination
of eligibility are made. A state may elect to maintain a waiting list if the state is not able to provide
subsidy assistance to all who are eligible under state rules, but the state is not required to do so.
4. Program Services
Most of a state's expenditures under CCDF are for child care services for eligible low income
families. Services are provided through a mixture of grants and contracts to providers and child care
certificates (vouchers) provided to eligible families. A state establishes payment rates to be paid to
providers, and must establish a sliding fee scale to determine the share of the cost of care provided
to eligible families.
States have broad discretion in setting payment rates for providers and in determining the share of
cost paid by families. There are, however, two key principles in the federal law which are intended
to affect state choices: the principle of "equal access" and the principle of "parental choice."
A state's CCDF plan must certify that payment rates for the provision of child care services for
which CCDF assistance is provided are "sufficient to ensure equal access, for eligible families in the
area served by the Lead Agency, to child care services comparable to those provided to families not
eligible to receive CCDF assistance or child care assistance under other Federal, State, or tribal
programs. (15) The state plan must provide a summary of the facts relied on by the State to
determine that the equal access requirements have been met (16) At a minimum, the summary shall
include facts showing:
PHOTOCOPY
How a choice of the full range of providers, e.g., center, group, family, and
in-home care, is made available;
PRESERVATION
How payment rates are adequate based on a local market rate survey conducted
no earlier than two years prior to the effective date of the currently approved
Plan;
How copayments based on a sliding fee scale are affordable.
In guidance to states, HHS has stated that it will presume a state's payment rates are sufficient to
provide equal access if, based on a market rate survey, the state's payments to providers are set at a
level not lower than the 75ᵗʰ percentile of the local market rate, i.e., a rate high enough to
encompass 75% of the local providers or slots. HHS has also said that a state's copayment scale
would generally be considered affordable if it did not require families to expend more than 10% of
their income for child care costs. While the 75ᵗʰ percentile and 10% copayment provisions offer
important guidance to states, they are not formal regulatory requirements, and a state's payment
rates and/or copayment requirements may not actually meet these standards. In fact, a 1998 review
of CCDF plans by HHS' Office of the Inspector General (issued before the publication of final
CCDF regulations) found that 29 out of 51 states did not make payments to child care providers
based on the 75ᵗʰ percentile of the 1996 market rate (17) The same review found that 22 states
required copayment rates that exceed 10% of family income. At this point, it is not yet known
whether state plans submitted in 1999 will come closer to reaching the federally recommended
standards.
The parental choice requirement of federal laws says, in part, that state's CCDF plan must include
an assurance that state and local regulatory requirements (or tribal regulatory requirements), health
and safety requirements, payment rates, and registration requirements, State or local (or tribal) rules,
procedures or other requirements promulgated for the purpose of the CCDF will not significantly
restrict parental choice by:
expressly or effectively excluding any category of care, type of provider, or any
type of provider within a category of care; or
having the effect of limiting parental access to or choice from among such
categories of care or types of providers; or
excluding a significant number of providers in any category of care or of any
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7/12/2000 7:53 PM
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"ocrText": "http://www.clasp.org/pubs/childcare/FinalCCDFOverview.htm\neligibility determinations are made. Once a family is determined eligible, a state must periodically\ndetermine eligibility, but there are not specific federal requirements for when those redetermination\nof eligibility are made. A state may elect to maintain a waiting list if the state is not able to provide\nsubsidy assistance to all who are eligible under state rules, but the state is not required to do so.\n4. Program Services\nMost of a state's expenditures under CCDF are for child care services for eligible low income\nfamilies. Services are provided through a mixture of grants and contracts to providers and child care\ncertificates (vouchers) provided to eligible families. A state establishes payment rates to be paid to\nproviders, and must establish a sliding fee scale to determine the share of the cost of care provided\nto eligible families.\nStates have broad discretion in setting payment rates for providers and in determining the share of\ncost paid by families. There are, however, two key principles in the federal law which are intended\nto affect state choices: the principle of \"equal access\" and the principle of \"parental choice.\"\nA state's CCDF plan must certify that payment rates for the provision of child care services for\nwhich CCDF assistance is provided are \"sufficient to ensure equal access, for eligible families in the\narea served by the Lead Agency, to child care services comparable to those provided to families not\neligible to receive CCDF assistance or child care assistance under other Federal, State, or tribal\nprograms. (15) The state plan must provide a summary of the facts relied on by the State to\ndetermine that the equal access requirements have been met (16) At a minimum, the summary shall\ninclude facts showing:\nPHOTOCOPY\nHow a choice of the full range of providers, e.g., center, group, family, and\nin-home care, is made available;\nPRESERVATION\nHow payment rates are adequate based on a local market rate survey conducted\nno earlier than two years prior to the effective date of the currently approved\nPlan;\nHow copayments based on a sliding fee scale are affordable.\nIn guidance to states, HHS has stated that it will presume a state's payment rates are sufficient to\nprovide equal access if, based on a market rate survey, the state's payments to providers are set at a\nlevel not lower than the 75ᵗʰ percentile of the local market rate, i.e., a rate high enough to\nencompass 75% of the local providers or slots. HHS has also said that a state's copayment scale\nwould generally be considered affordable if it did not require families to expend more than 10% of\ntheir income for child care costs. While the 75ᵗʰ percentile and 10% copayment provisions offer\nimportant guidance to states, they are not formal regulatory requirements, and a state's payment\nrates and/or copayment requirements may not actually meet these standards. In fact, a 1998 review\nof CCDF plans by HHS' Office of the Inspector General (issued before the publication of final\nCCDF regulations) found that 29 out of 51 states did not make payments to child care providers\nbased on the 75ᵗʰ percentile of the 1996 market rate (17) The same review found that 22 states\nrequired copayment rates that exceed 10% of family income. At this point, it is not yet known\nwhether state plans submitted in 1999 will come closer to reaching the federally recommended\nstandards.\nThe parental choice requirement of federal laws says, in part, that state's CCDF plan must include\nan assurance that state and local regulatory requirements (or tribal regulatory requirements), health\nand safety requirements, payment rates, and registration requirements, State or local (or tribal) rules,\nprocedures or other requirements promulgated for the purpose of the CCDF will not significantly\nrestrict parental choice by:\nexpressly or effectively excluding any category of care, type of provider, or any\ntype of provider within a category of care; or\nhaving the effect of limiting parental access to or choice from among such\ncategories of care or types of providers; or\nexcluding a significant number of providers in any category of care or of any\n4 of 10\n7/12/2000 7:53 PM"
}