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  #1  
Old 02-26-2018, 03:15 PM
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Default Daycare Subsidy and Payments

I'm just trying to figure this out. I have a lady wanting care 5 days a week but it's only 5 hours a day but I charge $28 a day weather they are here 5 hours or 10 and I'm not sure I can find another kid to fill the remaining time and I consider 5 days a week full-time.

Unfortunately the state pays hourly and will only pay for the hours her child is being cared for. Am I still allowed to charge for the remaining even if the child was not here? I do for the other kids but not sure since this would be my first state pay parent.
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Old 02-26-2018, 03:51 PM
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No, for state children you can only charge for the amount of time they are there.

Private pay, you can charge your daily rate but if a state child is only there 5 hours, that is all you can charge. You have to fill out the paperwork showing the hours they were there for the month also.
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Old 02-26-2018, 04:03 PM
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Yuck, not sure it is worth taking up the spot then. I will let her know she should look into a center. Don't want to waste her time. Thanks
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Old 02-26-2018, 05:09 PM
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No one can answer this without knowing what state you're in and which agency you are working with.

It's different in every state.

I California I MUST charge everyone the same way and same amount. Otherwise I'm discriminating. So this means that anything not covered by subsidy is the parent's responsibility.
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Old 02-26-2018, 05:23 PM
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I'm thinking that if your price is by the day, how many hours a day shouldn't really matter. Like hwichlaz said, it depends on the state.
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Old 02-26-2018, 05:27 PM
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Hwichlaz, Iíve been wondering about that. I havenít opened yet, am looking to end of this year/early 2019, and am wondering about state pay. Iíll be charging near the top of the market, and so parents would need to cover the difference. Does this ever happen? Iíd like my daycare to be inclusive, and accept state pay families, but I also will be charging premium prices, and Iím wondering if those two goals are mutually exclusive. Iím also in a VERY expensive part of the state where I can command higher prices. Do you have any thought?

I havenít taken the licensing orientation class yet, so maybe all of this is covered there and I just donít know.

My apologies for the thread hijack everyone. This is something Iíve been wondering about for awhile.
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Old 02-26-2018, 05:47 PM
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Originally Posted by TooManyKitties View Post
Hwichlaz, Iíve been wondering about that. I havenít opened yet, am looking to end of this year/early 2019, and am wondering about state pay. Iíll be charging near the top of the market, and so parents would need to cover the difference. Does this ever happen? Iíd like my daycare to be inclusive, and accept state pay families, but I also will be charging premium prices, and Iím wondering if those two goals are mutually exclusive. Iím also in a VERY expensive part of the state where I can command higher prices. Do you have any thought?


I havenít taken the licensing orientation class yet, so maybe all of this is covered there and I just donít know.

My apologies for the thread hijack everyone. This is something Iíve been wondering about for awhile.
Here, look up what the state pays in your area and see what you think.
http://www3.cde.ca.gov/rcscc/index.aspx
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Old 02-26-2018, 06:10 PM
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I did when you provided that link previously, and it was very helpful. Thanks. Also, there would be a pretty significant gap.
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Old 02-26-2018, 06:13 PM
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Originally Posted by TooManyKitties View Post
I did when you provided that link previously, and it was very helpful. Thanks. Also, there would be a pretty significant gap.

That would mean that you are setting your rates high above average correct? I wouldnít expect any subsidy clients to sign with you then, they wonít be able to afford it.
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Old 02-26-2018, 06:15 PM
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In my state parents have to make up the difference. The state just pays monthly to the provider here, but I know that the amount the parents receive is based on how many hours care they need for their job.
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Old 02-26-2018, 06:20 PM
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Iím in MN and can charge the parent whatever the state doesnít cover.

For example care costs $165/week
State pays $100
Parent owes me $65 out of their own pocket.
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Old 02-26-2018, 06:35 PM
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OP here. I am in MI and everyone is charged the same daily rate.
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Old 02-26-2018, 06:51 PM
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Thanks everyone. This has been a helpful conversation.
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Old 02-27-2018, 06:49 AM
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OP here. I am in MI and everyone is charged the same daily rate.
http://www.michigan.gov/mde/0,4615,7...649---,00.html

Here are the links to handbooks/rule books for child care assistance in Michigan. It has a link for both licensed and unlicensed care so you should be able to find your answers within those links.

In MN 5 hours is considered a whole day so the state will pay the full day rate even if the child is only in care for those 5 hours. So in your case, if you bill families by the day or the week, the state will usually have a minimum in which they will require before paying for the full day and/or week.

My state automatically pays the daily rate after 5 hours and will automatically pay the weekly rate once the "hour total" reaches 36 hours.

Hope that helps!
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Old 02-27-2018, 09:24 AM
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Quote:
Originally Posted by Unregistered View Post
I'm just trying to figure this out. I have a lady wanting care 5 days a week but it's only 5 hours a day but I charge $28 a day weather they are here 5 hours or 10 and I'm not sure I can find another kid to fill the remaining time and I consider 5 days a week full-time.

Unfortunately the state pays hourly and will only pay for the hours her child is being cared for. Am I still allowed to charge for the remaining even if the child was not here? I do for the other kids but not sure since this would be my first state pay parent.
You should call your subsidy program and ask them. My subsidy program only covers up to certain hours per week and sometimes the parents use more than they are allotted. I also charge weekly like you do and they don't reimburse weekly just daily/hourly etc. We're allowed to charge the client for the difference though, not a lot of other agencies do from what I hear. Our agency also allows us to charge late payment fees, overtime fees etc because they don't cover those.
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Old 02-27-2018, 09:30 AM
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OP here. I am in MI and everyone is charged the same daily rate.
I am in MI and the state, last I knew, pays up to 90 hours bi weekly. I had a dcb scheduled here for 50 a week and was able to charge dcd the difference.
That was in 2016, my rate was $28 a day but state was paying me $3.40 an hour. So I was coming out ahead.
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Old 02-27-2018, 09:37 AM
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In MI do you have anything on line that shows the rate the states will pay?

I know for my state, different areas get paid different amounts from the state. So my zip code get paid more than a zip code 20 miles away.

Might see if you can find something on line. Our state puts the rates on so parents/providers can find them and know what rates are.

I know we can't charge state parents more than we charge private parents. I do know though providers sometimes have different contracts for their state parents, then their private parents. This is where the hourly vs. daily might come in.
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Old 02-27-2018, 09:57 AM
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Quote:
Originally Posted by Country Kids View Post
In MI do you have anything on line that shows the rate the states will pay?

I know for my state, different areas get paid different amounts from the state. So my zip code get paid more than a zip code 20 miles away.

Might see if you can find something on line. Our state puts the rates on so parents/providers can find them and know what rates are.

I know we can't charge state parents more than we charge private parents. I do know though providers sometimes have different contracts for their state parents, then their private parents. This is where the hourly vs. daily might come in.
We aren't allowed to charge parents more . I will only take a few state kids as it is about 25 a week less than my rate. I also only take full time for state clients.
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Old 02-27-2018, 10:36 AM
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Quote:
Originally Posted by Country Kids View Post
In MI do you have anything on line that shows the rate the states will pay?

I know for my state, different areas get paid different amounts from the state. So my zip code get paid more than a zip code 20 miles away.

Might see if you can find something on line. Our state puts the rates on so parents/providers can find them and know what rates are.

I know we can't charge state parents more than we charge private parents. I do know though providers sometimes have different contracts for their state parents, then their private parents. This is where the hourly vs. daily might come in.
Yes the rates are online in the CDC book. Our rates in Michigan are based off from our star rating not area. And then they broke down between age groups. For instance three star, ages newborn to two and a half get $3.40 an hour. The rate drops once the child turns two and a half. More stars more money per hour.
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Old 02-27-2018, 11:06 AM
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Yes the rates are online in the CDC book. Our rates in Michigan are based off from our star rating not area. And then they broke down between age groups. For instance three star, ages newborn to two and a half get $3.40 an hour. The rate drops once the child turns two and a half. More stars more money per hour.
What if your not Star Rated?

Here, we get on our area then if we are Star rated we get an additional set amount at the end of the month depending on our STARS.

EX-5 STAR=$90
4 STAR=$80
3 STAR=$70

Would be per state child but they have to be enrolled full time. If they are enrolled part time we don't get the additional money.
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  #21  
Old 02-27-2018, 11:20 AM
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Our state subsidy program pays different rates based on area as well. The metro area have higher rates so the reimbursement rates reflect that.

Providers that participate with our QRIS program get paid 20% more than regular reimbursement rates.

Providers that have a CDA, a degree in ECE and/or are accredited also qualify for the higher reimbursement rates.

As with most states we canít charge subsidy families more than private pay families but even with the higher reimbursement rates the state rates are still much lower than what I charge so all families using state assistance here end up with some out of pocket expenses (unless they qualify for and receive an EL scholarship - as that covers ALL costs for care even nonworking hours/days) but thatís a whole other story....
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Old 02-27-2018, 11:43 AM
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I forgot to add that if state families here chose a STAR rated program it drops their out of pocket expense (co pay) to like $25 I believe.

We just had an increase on our state rates and I'm now below them. I haven't had state pay in 15 years, so I'm not sure if it's worth raising for my private pay clients or not. I feel they are paying out of pocket with no help and it's going to get to the point private pay clients aren't going to be able to afford childcare if they have to keep up with the state pay clients.
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Old 02-27-2018, 11:52 AM
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Itís nice that your state is aware of costs and raises the reimbursement rates accordingly

My state is so far below average rates that even the cheapest program in the state is still higher that reimbursement rates.

I just make sure to tell families that itís called ďassistanceĒ not ďcoverageĒ so expecting the state to cover all fees is unrealistic
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Old 02-27-2018, 12:13 PM
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"In addition to mandating new health and safety requirements, the Federal Government recommends child care subsidy rates be established at 50% of the most current market rate survey." The average weekly subsidy rate paid per child in my area is $89.34. We can't charge the difference.

There have been a lot of issues recently because "a child must be a U.S. citizen, or have established U.S. Citizenship and Immigration Services (USCIS) status as a lawfully admitted qualified alien."

Providers often are not told the child no longer qualifies until after a child is enrolled and services provided. After no payment (or even owing arrears) they are told: "If you are in this position, write a letter detailing the events and circumstances that occurred that resulted in caring for these children, that the children are not eligible to receive subsidy despite being told otherwise, and requesting that the costs be reimbursed by *the county*. (this is specifically relevant to my area as a rural farming community with a large community of migrant workers whom are only here a potion of the year. We welcome them but struggle to provide for them financially.)

In the past the government shutdowns ended in providers never being reimbursed at all with no recourse. Subsidy is simply too unstable for me to opt in my State.
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Old 02-27-2018, 12:15 PM
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Quote:
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Itís nice that your state is aware of costs and raises the reimbursement rates accordingly

My state is so far below average rates that even the cheapest program in the state is still higher that reimbursement rates.

I just make sure to tell families that itís called ďassistanceĒ not ďcoverageĒ so expecting the state to cover all fees is unrealistic
They finally raised state paid rates here since 2007 but it is still way below what it should be. I can only take a few because of this. We don't not get higher rates only higher for larger licenses.
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Old 02-27-2018, 12:36 PM
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In the past the government shutdowns ended in providers never being reimbursed at all with no recourse. Subsidy is simply too unstable for me to opt in my State.
A few years back we had a shutdown of our state government and providers were paid but a long time after the fact and it caused a ton of issues with providers and their willingness to accept state assisted families.

At the time that happened, 75% of my families used some form of assistance. It almost wiped me out financially as that was ALOT of income to not have.

Like I said we were eventually paid but by the time that happened, my finances were all over the place..... I ended up limiting the number of spaces in my program that I would allow to be filled by a family on subsidy. Now if a government shut down in my state were to happen again, I only have 3 out of 12 spaces filled with children who's family uses state assistance to cover their costs.

I probably would have stopped taking subsidy families all together but QRIS requires it and the state did a big overhaul as to how they implement the entire program so there is a lot more "protection" for providers than there was before.

For example I never knew if a family truly qualified for the program nor for how many hours per week until after I submitted a full monthly bill. If the family owed anything they could be long gone by that time leaving the provider out all fees.... now the state will pay the last 2 weeks of care even if the family left with no notice and will put a hold on the family's case if they owe a previous provider any monies.

I submit all billings electronically as well as get paid via direct deposit now so it's easy to see if a family's case is still active or not. If there is any issue with the family using services when not authorized, the state takes it up with the parent not the provider so leaving us out of that equation also makes a big difference.

The common phrase used to be "Daycare providers receiving state assistance"... but wording has since changed to "Daycare providers that accept family's that use state assistance" Makes a big difference.
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Old 02-27-2018, 04:02 PM
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Itís nice that your state is aware of costs and raises the reimbursement rates accordingly

My state is so far below average rates that even the cheapest program in the state is still higher that reimbursement rates.

I just make sure to tell families that itís called ďassistanceĒ not ďcoverageĒ so expecting the state to cover all fees is unrealistic
Some areas haven't changed for several years though. We have several towns in our county that haven't had raises for state paid children in 4+ years. Some of the providers are calling discrimination because they feel if other areas can get raises they should be able to also. We are the biggest "city" in our county so we received a raise.

How are state does it, is they take survey's from providers on what they charge for care and then average it out from there. Then what ever zip code code you fall in, those are the rates you charge to state clients. A-being the highest, B-the next highest and C-the lowest. C areas are the ones that haven't had raises in 4+ years. My area (B) only went up $35 I believe in the last four years.
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Old 02-27-2018, 07:42 PM
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What if your not Star Rated?
0 & 1 star gets the same amount.
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  #29  
Old 02-28-2018, 06:55 AM
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West Virginia pays a full day of $20 ($25 for infants) at just 4 hours.
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Old 02-28-2018, 07:41 AM
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Default That's different!!!

In Indiana, where I am, 5 hours or more per day is considered full time. So if I have a child here for 5 hours per day or 8 hours per day I get the full rate due the parent (if there is no co-pay). Less than 5 hours and they pay the hourly rate. That is so strange it's only paid by the hour where you are!
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Old 03-01-2018, 05:25 PM
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In Utah, we get paid in advance. We can see online as soon as a parent is approved. The state pay their part and the parent must make up any difference. If they don't pay their part...the state stops funding at all until they do. I love that we have a pro provider state. I've lived in other states that weren't so good.
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Old 03-09-2018, 04:07 PM
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Wow $28 a day?! I wish I lived in your state. Where i live in MD daycare is $55-$100 daily. Like $250-$450 a week.
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