Child Care Service Payment Principles

Reimbursement

Child care payments are reimbursements which do not exceed the Regional Market Rates (RMR) ceiling. The child care payment is always issued as a reimbursement to the provider and is based upon the actual costs of child care provided.

Fixed Schedule

Payment for absences may include payments to a licensed child care provider who has a “Fixed Schedule” policy in writing. A “Fixed Schedule” policy requires payment during the child’s absence from day care. A copy of this policy must be on file. Payment cannot exceed two consecutive weeks.

Lost Documentation

The county is not responsible for documentation that is lost in the mail.

Notice of Action (NOA)

The county must notify the client whenever there is an approval, denial, change or discontinuance in the amount of subsidy paid by the county for child care. A 10-day NOA is required for the discontinuance, decrease, or when there is an interruption in the child care payment.

There are three types of child care NOAs used for these situations, and the Associate Employment Counselor (AEC)/Employment Counselor (EC) must issue the appropriate NOA.  The three NOAs are:

• Child Care Services Change (NA 833)
• Child Care Services Denial (NA 834)
• Child Care Services Discontinuance (NA 835)

Whenever a NOA is not issued through CalSAWS, a copy of the NOA MUST be forwarded to Imaging. It is the client’s sole responsibility to communicate information regarding their child care subsidy to their provider.

If the payment to the provider differs from the amount the provider billed, the Child Care Payment Adjustment (SCD 1736) must be issued. Refer to Adjustments.

Co-Payment

A client may choose a child care provider whose rates exceed the RMR ceiling. The county will not pay child care costs that exceed the RMR, and the client is responsible for paying the difference. This is referred to as a co-payment.

Change in Rate Ceiling

When notified of a change in the child care provider, or when a child turns 2, or becomes school-age, the rate ceiling for that child must be reviewed. When a revision is necessary, a new NOA must be issued to the client. If there is a decrease in their RMR or child care payments are discontinued, a timely NOA must be issued. Any changes are effective the first of the following month.

Reminder: Children who are 12 years old when certified must be certified for no less than 12 months.  If a child turns 13 years old within the first 12 months of their eligibility period, the Notes section of the Child Care Services Approval (NA 832) should clearly indicate that they are only eligible for 12 months, including the time after they turn 13.  

When a child enters kindergarten at 5 years of age, the “6 years and older” rate ceiling is used. 

Example Example A 5-year-old enrolled in kindergarten would be paid at the school-age (6+ years) category for before and after-school care. A 5-year-old NOT enrolled in kindergarten would be paid at the preschool (2–5 years) category.