Child Care Service - Child Care Rates

Child care is approved immediately upon approval of CalWORKs cash aid for WTW mandatory clients, and is approved for full-time care unless the individual specifically requests part-time care. Licensed child care providers are reimbursed according to their established rate, but NOT to exceed the maximum payment rate. Licensed child care providers must have a documented child care rate. If the provider does not have an established rate as defined in the “Rate Categories” below, the county will establish a rate to match the Rate Category, which is based on the type of care and age of the child.”

License-exempt child care providers are not required to submit rate sheets or provide the rate they are charging. License-exempt child care providers are reimbursed at Regional Market Rates (RMR).

Establishment of Licensed Provider Rate

When the licensed provider’s rate is not on the rate category, the EC must contact the provider, and ask if they wish to establish a rate to correspond to the “Rate Category.” If the provider does not provide a rate that corresponds to the “Rate Category,” or the EC is unable to make contact with the provider, the EC must establish the appropriate rate as follows:

Identify a rate category that corresponds to the licensed provider’s rate.
Divide the provider’s rate by the regional market rate ceiling for the appropriate rate category. This will yield a percentage.
Apply the percentage to the regional market rate ceiling for the rate category to be used for reimbursement. This will be considered the provider’s established rate.
When doing calculations to determine child care rate, payments, etc., calculations must be rounded up to two decimal places, based on the third decimal place. ExampleExample $597.50/22 = 27.159, since the third decimal place is greater than 5, the rounded up amount = $27.16.

If a licensed child care provider's reimbursement rate is unable to be determined as either full-time weekly or full-time monthly, the provider should be reimbursed according to either of the following:
1. The applicable rate category that most closely corresponds to the rate category listed on the licensed provider’s rate sheet; or
2. If the EC cannot determine a single applicable rate category from the licensed provider’s rate sheet, the applicable rate category that results in the higher reimbursement.

Note: Regional Market Rates (RMR) ceilings are the maximum CalWORKs will pay for child care. If the licensed child care provider charges less than RMR, the county will reimburse at the provider's rate. The EC must document in the Journal Detail page in CalSAWS how the provider’s rate was established, and issue a notice of action, if appropriate.

Rate Categories

WTW mandatory clients are immediately approved for full-time child care services for 12 months, unless they specifically request part-time care. All providers are reimbursed in accordance with the following rate categories, up to the regional market rate ceiling for each category:

Rate Category	Use When...
Hourly	Need is fewer than 25 hours per week and fewer than five hours on any given day; or Unscheduled, but documented need of fewer than five hours per occurrence, such as the parent’s need to work overtime, that exceeds the certified need. The portion that exceeds 52.5 hours per week AND is not included in the provider’s full-time weekly or monthly rate. This only applies if the same provider is used to meet all the child care needs of the child.
Daily	Need is no more than 14 days per month AND six hours or more per day; or Unscheduled need of six hours or more per occurrence that exceeds the need (e.g., parent worked on a regularly scheduled day off); or The parent’s variable work schedule lacks a pattern of recurring work days and days off on a weekly or monthly basis; Therefore, the EC is unable to apply any other rate.
Weekly Part-Time	When need is more than 15 hours but less than 25 hours per week AND the need occurs at LEAST three days per week.
Weekly Full-Time	When the need is 25 or more hours per week.
Monthly Part-Time	The need is more than 15 hours but less than 25 hours per week AND the need occurs in every week of the month; or The need averages more than 15 hours but less than 25 hours per week when calculated by dividing the total number of hours of services needed in the month by 4.33 and the need for child care services occurs in every week of the month.
Monthly Full-Time	The need is 25 or more hours per week AND it occurs every week of the month; or The need averages 25 or more hours per week when calculated by dividing the total number of hours of services needed in the month by 4.33, and the need occurs in every week of the month.

Note: The use of daily reimbursement rate cannot exceed more than 14 days per month and when used cannot exceed the provider full-time rate or applicable monthly ceiling.

The following are examples using the rate categories:

Determining the rate category:

Situation

Applicable Rate Category(ies)

Child is school age, and is in care from 7:30 to 8:30 am and 2:30 to 5 pm (3.5 hours daily) five days a week. The total is 17.5 hours of care.

Part- time, or full-time weekly

Part-time, or full-time monthly rate

Reminder: Unless specifically requested, child care is approved for full-time care.

Family has a variable work schedule that averages 29 hours per week.
The need for care occurs in every week of the month.
However, some weeks have fewer than 25 hours.

Full-time monthly rate.

The applicable rate category that most closely corresponds to the rate category listed on the licensed provider's rate sheet; or
If unable to determine a single applicable rate category from the licensed provider's rate sheet, the applicable rate category that results in higher reimbursement is to be used.

Child Care Service - Child Care Rates

Establishment of Licensed Provider Rate

Rate Categories

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