Maryland Child Care Subsidy Payment Processing - PowerPoint

Document Sample
Maryland Child Care Subsidy Payment Processing - PowerPoint Powered By Docstoc
 Child Care Subsidy
Provider Information
Orientation and Overview
• This presentation is an orientation and
  overview of The Child Care Subsidy Program.
• As you go through the slides you will learn
  – The Child Care Subsidy Program
  – The types of child care providers
  – The responsibilities of the provider, family, the
    Local Department of Social Services (LDSS) and
    the Maryland State Department of Education
  – Getting paid for the services you provide
  – Payment policies
  – Developing your business practices
  – Who do you contact with a question or problem
      Child Care Subsidy
• Welcome to Maryland’s Child Care
  Subsidy program.
• Our program is a partnership between
  parents, providers, and the Division of
  Early Childhood Development of the
  Maryland State Department of
• Thank you for providing care for
  children whose families receive Child
  Care Subsidy.
        Provider Types
• In Maryland, parents have a range
  of choices available to them when
  choosing a child care provider.
• Formal Care, which consists of
  Registered Family Child Care Homes
  and Licensed Child Care Centers
• Informal Care, which is relative
  care, in-home care, and babysitting
           Provider Types
• Formal Child Care:
  – The Office of Child Care Licensing Branch
    monitors and licenses family child care homes
    and child care centers.
• Informal Child Care:
  – The parent has set up a legal child care
    arrangement. The provider is required to
    submit a signed affirmation of compliance
    with child care health and safety standards.
    They are not required to be licensed,
    however, they must:
     • Be a relative, or
     • Provide care in the child’s own home.
  Providers are Independent
• This means:
  – MSDE - Maryland Child Care Subsidy is not the
    child care provider’s employer
     • The parent is the employer
  – Maryland’s Child Care Subsidy program does not
    determine your hours of operation, cost of child
    care and/or how child care services are provided
  – Maryland’s Child Care Subsidy program does not
    withhold or pay income or payroll taxes and/or
    provide fringe benefits for child care providers
  – Maryland issues subsidy reimbursement to child
    care providers on behalf of families enrolled in
    the Child Care Subsidy Program.
  Provider Responsibilities
• The provider is responsible for:
  – Maintaining a facility that is licensed
  – Maintaining health and safety standards
  – Keeping accurate attendance and financial
  – Completing the invoices with accurate
    information based on attendance records,
    and return them in a timely manner
  – Communicate with the families of children
    in care to ensure vouchers are renewed
   Family Responsibilities
• Families are responsibilities include:
  – Report to LDSS any changes in provider,
    family income, or parent activity
  – Pay the weekly co-payment to the
  – Provide to the LDSS information to
    determine the family’s eligibility and
    authorize child care correctly
  – Understand their contractual obligations
    to the child care provider.
   LDSS Responsibilities
• The Local Department of Social
  Services is responsible for:
  – Establish a family’s eligibility for
    subsidized child care
  – Giving a family and provider 5 days
    advance notice if their child care benefits
    are being reduced, terminated or
  – Assist in answering questions regarding
   MSDE Responsibilities
• The Maryland State Department of
  Education is responsible for:
  – Oversight of the Child Care Subsidy
  – Payment of invoices submitted by child
    care providers through Maryland Child
    Care Subsidy Payment Processing
   Getting Paid for Services
• Invoices are mailed to providers for each
  two-week service period.
• All children with receipted vouchers are
  pre-printed on the invoice.
• If a child name does not appear on the
  invoice, speak with the parent to make
  sure the signed voucher was returned to
  the LDSS.
  – If the voucher was returned, the child’s name
    will appear on an adjusted invoice
  – Do not write in the name of the child on your
           Getting Paid
• To initiate payment:
  – As soon as the service period is over
    the invoice must be accurately
    completed, signed and sent to
  Mail:                    FAX:
  MDCCSPP                  443-957-2641
  P.O. Box 17543
  Baltimore, MD 21297-1543
            Getting Paid
• The Invoice Processor at MDCCSPP will
  review the invoice to ensure that it is
  filled our completely and signed by the
• The invoice data is entered into the Child
  Care Automated Tracking System (CCATS)
• Errors on the invoice are a common reason
  for payment delays, so it is important to
  take a few extra minutes to double check
  the information before sending in for
                 Getting Paid
• Once the Invoice Processor has signed off on the invoice,
  the Supervisor reviews the information and gives the final
  approval in CCATS.
• After the invoice is approved by MDCCSPP, the request
  for payment is processed through the Comptroller’s
  Office which will take 7-10 business days
• Invoice Detail Report
   – Once the payment is approved and the payment processed
     through the Comptrollers’ Office, providers will be sent an
     invoice detail report.
   – The report will specify payment for each child receiving
     child care subsidy.
   – Review the report carefully to ensure that proper payment
     has been issued for each child.
   – It is good business practice to keep copies of all detail
     reports for tax purposes.
         Payment Policy
• Reimbursement rates are based on a
  market rate survey on the cost of child
• The rate established for each payment
  region is determined by the information
  provided by providers about the amount
  they charge to families in care.
• Rates are grouped by type of care and
  areas of the State based on fees charged
  to families.
• For information on payment rates visit
                    Payment Policy
•   A provider is paid only for the time authorized by the terms
    stated on the voucher.
•   If the fee you charge to families is more than the amount on the
    voucher, you are responsible for ensuring that families are
    aware of the difference in the amount of the voucher and the
    fee charged to families
•   Families must be informed of any additional fees they may be
    charged above the amount the State is agreeing to reimburse
    the provider on behalf of the family
     –   For example:
           • If the voucher issued is for $100 and the assigned parent co-pay amount
              is $10, but the provider charges $150 for the child care slot – there is a
              difference of $40.
           • It is the responsibility of the provider and parent to agree as to the fee.
              The State has determined that the parent is required to pay a co-
              payment in the amount of $10. However, the provider may add the
              difference of $40 to the amount required of the parent for the care of
              their child.
           • The provider may not charge a family receiving a child care subsidy
              voucher more than another family in care. Therefore, if your tuition is
              $110 per week, then this same family would not have an additional amount
              due to you. The State reimbursement and parent co-pay would cover the
              entire cost of care for the child.
            Payment Policy
• Family Child Care and Child Care Center
  Providers are paid for:
   – Six holidays each year including:
      • New Year’s Day, Memorial Day, Independence Day,
        Labor Day, Thanksgiving Day and Christmas Day
   – Day the State or local government declares a
     weather emergency
   – Voluntary closure days when child care services
     are not provided as long as the parent is given at
     least two weeks written notice of the closure and
     the information is provided to MDCCSPP
   – Child absences up to 60 days per calendar year.
         Payment Policy
• Informal Providers are:
  – Paid for only the time the child
    receives care
  – Not paid for any holidays or child
            Parent Co-Pay
• The intent of the Child Care Subsidy Program is to
  assist eligible families with the cost of child care.
• Most subsidy customers will be assessed an
  assigned co-payment based on their income
• The assigned co-pay is federally mandated to
  assure that families are contributing to the cost
  of child care
• The amount of the co-payment will show on the
  voucher issued to the parent
• Parents are responsible for paying the co-pay
  directly to the provider, as well as any additional
  fee agreed upon
   Developing Your Business
• Whether you are a licensed child care
  provider or an informal provider, you can
  benefit from developing good business
  practices such as:
  – Entering into a contract with parents
  – Keeping appropriate and complete
  – Establishing a method to track and pay taxes
    on the money earned, and
  – Participating in professional development
    activities and, if eligible The Maryland Child
    Credential Program
• A contract between you and a family
  can prevent misunderstandings about
  payment expectations and other issues
  such as hours and days of care, food
  service, child guidance practices, fees,
  closure days, and other child care
  policies and practices.
• Contracts should be established
  before care is provided and updated
  as needed, but at least once per year.
• Maintaining copies of vouchers, invoices,
  Invoice Detail Reports and payment
  records is good business practice
• Setting up a filing system will help you
  keep organized
• Monitoring when a voucher will expire is
  important and communicating with parents
  about a voucher ready to expire can
  eliminate late reimbursement payments or
  denial of reimbursement.
• The Maryland State Comptroller’s Office will
  automatically mail a 1099 Form to you each January
  for income tax purposes if the amount paid to you
  during the previous calendar year was $600 or more.
• It is important for you to comply with all Internal
  Revenue Service (IRS) regulations. For questions or
  specific filing information contact the IRS at 1-800-
• The Maryland State Department of Education does
  not withhold taxes from child care reimbursement
  payments. You are self-employed and responsible
  for all tax liability to the State and Federal
   Professional Development
• Professional development, completing training, is good
  for you and the children for whom you are providing
• Training is categorized into six major areas known as
  the Core of Knowledge:
   –   Child Development
   –   Curriculum
   –   Health, Safety and Nutrition
   –   Special Needs
   –   Professionalism, and
   –   Community (knowing your community resources and diversity)
• Taking training in a variety of areas helps you develop
  skills and knowledge to improve your business and your
  day-to-day interactions with the children in your care
  and their families
      Professional Development
• The Maryland Child Care Credential Program is
  available to all licensed and registered child care
• It recognizes individuals working directly with
  children for their education (training),
  experience and professional activity.
• It is a voluntary program, but by participating you
  could be eligible for bonuses and monetary
  support to take additional training
• For more information about the Maryland Child
  Care Credential program visit:
      Tiered Reimbursement
• Tiered Reimbursement:
   – Is a voluntary program for all licensed and
     registered child care providers.
   – Recognizes child care programs that go beyond
     the requirements of State licensing regulations.
   – Provides incentives in the form of additional
     quality payment amounts based on each child
     receiving child care subsidy in the program.
• For more information on Tiered
  Reimbursement visit:
         Provider Resources
• Provider Helpline:
   – Phone: 1-866-243-8796
   – E-mail:
• Electronic Funds Transfer (EFT)
   – Tired of waiting for the mail. Sign up for
     EFT. The Comptroller’s Office will deposit
     your money directly into your bank account.
     For more information visit:
         More Resources
• Child and Adult Care Food Program
   – The program is a key source of support
     for child care providers and programs.
   – This program provides reimbursement for
     food and meal preparation costs, ongoing
     training, and onsite technical assistance.
For additional information visit:
              or call 410-767-0199
       SEIU 500 – Kids First
Family Child Care Providers who participate in the Child
Care Subsidy program are represented by a Union.
SEIU Local 500 Kids First Union represents family
child care providers (both informal and formal) in the
state of Maryland. The Union can offer family child
care providers:
   –   mentoring for assistance in licensing and credentialing,
   –   a place to meet other providers,
   –   a voice in your profession, and
   –   discounts on training, computers and other essential items.

For information about the Union or to join call 301-740-7100
For more information visit:
  Child Care Associations
Child care associations provide child care
providers with support, networking, training
and information about child care practices
and standards. There are statewide and
local organizations. The statewide
organizations include:
  – Maryland Child Care Association (center
    association) or 1-877-820-9196
  – Maryland State Family Child Care Association or 240-529-6556
• Providers have access to the
  following forms to assist with child
  care subsidy record keeping:
  – Parent’s Consent to Release
  – Parent’s Change Reporting Form (392)
• See next slide for more
             Form Uses
• Parent’s Consent to Release
  Information – allows the provider hotline
  and LDSS staff to share voucher
  information about the children in care
• Parent’s Change Reporting Form (392)–
  allows the parent and the provider to
  indicate whether or not any copayment is
  owed when a parent changes providers
       Form Availability
• Providers can obtain these forms
  from an LDSS, the provider hotline,
  or the MSDE website at:

Shared By: