Instructions for Changes Effective February and March 2014
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1 # Bulletin January 31, 2014 Minnesota Department of Human Services -- P.O. Box St. Paul, MN OF INTEREST TO County Directors Tribal Directors Child Care Assistance Program Administrative and Client Access Contacts Child Care Aware Agencies ACTION/DUE DATE Please implement as specified in the bulletin EXPIRATION DATE January 31, 2016 Child Care Assistance Program Instructions for Changes Effective February and March 2014 TOPIC Child Care Assistance Program changes to absent day policy, family disqualification periods, provider authorization or payment withholding policy, maximum rates, accreditations eligible for higher rates, and Parent Aware rated providers eligible for higher rates. PURPOSE Provide Child Care Assistance Program policy and MEC² system instructions to county workers. CONTACT Contact your Child Care Assistance Program technical liaison or submit your question through PolicyQuest SIGNED ERIN SULLIVAN SUTTON Assistant Commissioner Children and Family Services Terminology Disclaimer The terminology used to describe people we serve has changed over time. The Minnesota Department of Human Services (DHS) supports the use of "People First" language. Although outmoded and offensive terms might be found within this document, DHS does not endorse these terms.
2 Page 2 I. Background During the 2013 legislative session, policy changes were enacted that impact the Child Care Assistance Program (CCAP). This bulletin provides detailed information about changes that are effective in February and March Changes that are effective after March 2014 are not addressed in this bulletin. DHS will provide guidance about these changes in the future. A summary of the 2013 legislative changes for Children and Family Services programs, including CCAP, was provided in bulletin # II. Absent days A. Program policy and requirements 1. Absent day limit changes to 25 absent days per calendar year Effective February 1, 2014, absent day provisions allow payment of not more than 25 absent days per calendar year, and not more than 10 consecutive absent days for children attending licensed centers, licensed family child care providers and license-exempt centers. The absent day limit through is 10 absent days per calendar year. Absent days paid between the time periods of January 1, 2014 and January 31, 2014 will be counted toward the 25 absent days per calendar year limit that goes into effect on February 1, Legal nonlicensed (LNL) providers cannot be paid for absent days. 2. Documented medical conditions that cause more frequent absences Effective February 1, 2014, payment in excess of the absent day limits may be made for children with documented medical conditions that cause more frequent absences. Payment may be made for more than 25 absent days per calendar year and for more than 10 consecutive absent days. In order to be eligible for payment in excess of the absent day limits, the CCAP Medical Condition Documentation Form (DHS-4602) must be completed and returned to the CCAP worker. The form must be completed by a physician, physician s assistant, nurse practitioner, psychiatrist, psychologist, chiropractor, public health nurse, or school nurse. The form can also be completed by the child care center director or lead teacher if the child was sent home from child care due to the medical condition. If the CCAP Medical Condition Documentation Form (DHS-4602) was signed by the child care center director or lead teacher, the exemption cannot exceed two weeks from the start date of the illness. In order for the medical exemption to extend beyond the two weeks, the CCAP Medical Condition Documentation Form (DHS-4602) would need to be completed by a physician, physician s
3 Page 3 assistant, nurse practitioner, psychiatrist, psychologist, chiropractor, public health nurse, or school nurse. The documented medical condition causing the more frequent absences may be a medical condition of the child, the child s parent, or the child s sibling living in the same home. The documented medical condition may be a chronic condition or a time-limited condition. a) Chronic conditions: Exemptions for chronic (ongoing) conditions can be approved for up to 12 months. If the center director or lead teacher signed the form, the exemption is limited to up to two weeks. Exemptions begin on the start date of the illness, but not more than 30 days prior to the date the completed CCAP Medical Condition Documentation Form (DHS-4602) is received by the CCAP worker. To extend the exemption beyond the 12 months, another CCAP Medical Condition Documentation Form (DHS- 4602) must be completed and returned to the CCAP worker. b) Time-limited conditions: Exemptions for time-limited conditions can be approved for the time-period of the condition as indicated on the CCAP Medical Condition Documentation Form (DHS-4602), but not more than 12 months. If the center director or lead teacher signed the form, the exemption is limited to up to two weeks. Exemptions begin on the start date of the illness, but not more than 30 days prior to the date the completed CCAP Medical Condition Documentation Form (DHS-4602) is received by the CCAP worker. To extend the exemption or grant an exemption for another time-limited condition, another CCAP Medical Condition Documentation Form (DHS-4602) must be completed and returned to the CCAP worker. 3. Parents under age 21 attending certain education programs exempted Payment in excess of the absent day limits may continue to be made for children of parents under age 21 without a high school diploma or General Equivalency Diploma (GED) who meet certain criteria. The criteria are that the school district or similar program that the parent attends must provide or arrange for child care, parenting support, social services, career and employment supports, and academic support to achieve high school graduation. Payment may be made for more than 25 absent days per calendar year and for more than 10 consecutive absent days. The county must approve the exemption. Refer to CCAP Policy Manual 9.39 for more information. B. Required Action 1. Form Changes The CCAP Medical Condition Documentation Form (DHS-4602) will be posted on edocs by February 3, If parents or child care providers contact you regarding a child in excess of the absent day limits due to a medical condition, send the parent or provider the form or provide them with information on how to access the form online.
4 Page 4 2. MEC² Instructions A change will be installed in MEC² effective February 3, 2014 to change the absent day limit from 10 absent days to 25 absent days. MEC² will apply the 25 day limit starting the biweekly period of 2/3/2014. If 10 absent days were reached in January, and there are absent days on 2/1/2014 and 2/2/2014 that are beyond the 10 total absent days, but not beyond the 10 consecutive absent days these must be paid manually. Workers should contact the TSS Help Desk for help changing the days for 2/1/2014 and 2/2/2014 to absent days on the Absent Day Holiday Tracking window. To enter an exemption from the absent days due to a medical condition, follow the Medically Exempt Absent Day Coding instructions in the MEC² User Manual. Workers should document the exemption in case notes. To enter an exemption for parents under age 21 attending certain education programs, follow the Children of Parents Under 21 Absent Day Coding instructions in the MEC² User Manual. Prior to entering the exemption, check with your county supervisor to ensure that the county has approved the exemption for the program attended and has amended their County Child Care Plan to include this program. The medical exemption form is not needed if the child attends a program that the county has approved for this exemption. III. Family disqualification periods A. Program policy and requirements Disqualification periods for family members who have committed a CCAP Intentional Program Violation (IPV) are now aligned with other public assistance programs. Effective February 3, 2014, disqualify the entire family from receiving CCAP for the following lengths of time when a member or members of the family have had an IPV determination due to fraud: 1 year for the 1 st offense. 2 years for the 2 nd offense. Permanently for any subsequent violations. 1. Cases ineligible on 2/03/2014 due to a current fraud disqualification Families that are currently serving a disqualification period on 2/03/2014 due to a fraud offense determined prior to 2/03/2014 will be subject to the disqualification period in place at the time fraud was determined. These families will not have their disqualification periods extended or converted. Example: In November 2013, a family s CCAP case closed because of a parent s second fraud offense. The family would be ineligible for six months. Any applications submitted during the disqualification period would be denied.
5 Page 5 Provided the family met all other eligibility criteria, the family could be determined eligible again once the six month disqualification period is finished. If the parent is determined to have committed a subsequent fraud offense after 2/03/2014, then the family would be permanently disqualified based on the parent s third offense. 2. Fraud offenses determined on or after 2/03/2014 when a parent has had prior offenses Families where a parent has a fraud offense(s) determined prior to 2/03/2014 will be subject to the new disqualification periods for any subsequent fraud offenses determined on or after 2/03/2014. Example: A family in which the parent has one prior fraud offense in 2010 is determined to have committed a second fraud offense on 2/05/2014. Because this is the parent s second fraud offense, the family would be disqualified for two years. 3. Two-parent families with differing numbers of previous fraud offenses If a two-parent family in which each parent has a different number of prior fraud offenses receives a new IPV determination, the family will be disqualified based on the parent with the longer disqualification. Example: Both parents in a two-parent family sign a Waiver of Administrative Disqualification Hearing (ADH) on 2/03/2014. One parent has no prior offenses, but the other parent had one prior offense. As long as the second parent remains in the household, the family would be disqualified for 2 years based on the second parent s second fraud offense. B. Required Action 1. Forms Changes The Child Care Assistance Program Redetermination Form (DHS-5247) and the Combined Application Child Care Addendum (DHS-5223D) have been updated to reflect new policy regarding disqualification periods for CCAP fraud. The following CCAP forms will be updated and posted on edocs: Notice of Intentional Program Violation Waiver of Administrative Disqualification Hearing (DHS-3131) Request for Administrative Disqualification Hearing (DHS-3132) Notice of Program Disqualification (DHS-3134) Disqualification Consent Agreement (DHS-3429) Minnesota Child Care Assistance Application (DHS-3550) 2. MEC² Instructions
6 Page 6 Effective February 3, 2014, MEC² functionality will be updated to support this change. MEC² will look at the date entered in the IPV Determined field on the Fraud Window in the Case Data area to determine the length of disqualification period. The Fraud window must be coded properly in order for the system to determine the disqualification period correctly. Workers must update the Fraud window in the biweekly period that includes the IPV Determined date, which is the date fraud was determined. a) IPV Determined date and processing date on or after 2/03/2014 If the IPV Determined date, the date the worker codes the Fraud window, and the date the worker approves new Eligibility Results that reflect the fraud determination are all on or after 2/03/2014, then MEC² will determine the disqualification period in effect at the time fraud was determined. b) IPV Determined date prior to 2/03/2014, and processing date on or after 2/03/2014 If the IPV Determined date is prior to 2/03/2014, but the processing date is after 2/03/2014, the new IPV should be entered in the corresponding biweekly period of the IPV determined date. If there are questions, contact the TSS Help Desk prior to approving new eligibility results. The disqualification period must be the one in effect when fraud was determined, regardless of when the county updates MEC². IV. Provider authorization or payment withholding A. Program policy and requirements Minnesota Statutes, section 119B.13, subdivision 6(d), defines conditions that allow a county to refuse to issue a child care authorization, revoke an existing authorization, stop payment or refuse to pay a bill under certain conditions. Effective February 3, 2014, counties may withhold a provider s authorization or payments for up to three months beyond the time that a condition has been corrected. Bulletin # provided information and instructions to assist county efforts to detect fraudulent child care payments, refer cases for investigation, and ensure that counties engage in collection efforts to recover those payments. Bulletin # provided information and instructions to county and tribal agencies about actions related to child care payments authorized under Minnesota Statutes, section 119B.13, subdivision 6, paragraph (d), clause (4) when a provider license is suspended or revoked, but subject to or under appeal. DHS will issue guidance about other situations listed in Minnesota Statutes, section 119B.13, subdivision 6 in the future. B. Required Action
7 Page 7 Counties are encouraged to create criteria for applying these policies. If the county chooses to implement this county optional policy, a request to amend the County Child Care Fund plan must be submitted to DHS prior to implementation. MEC² will not be updated in conjunction with this change. Prior to revoking authorization or stopping payment based on one of the conditions listed in Minnesota Statutes, section 119B.13, subdivision 6(d), contact your CCAP technical liaison so that DHS can facilitate coordination with other counties as needed. Counties that choose to withhold a provider s authorization or payments for up to three months beyond the time that a condition has been corrected must record their actions in Case Notes and Provider Notes and apply policies consistently. DHS strongly recommends tracking each provider s penalty period by using worker created alerts. Refer to the MEC² User Manual Create Alerts (Worker Created Alerts) section for instructions on how to create alerts in MEC². V. Maximum rate changes A. Program policy and requirements Effective February 3, 2014, maximum payment rates will be based on either the 25 th percentile of the 2011 child care provider rate survey, or the maximum rate in effect on November 28, 2011, whichever is greater. Approximately half of the standard and 15 percent differential maximum rates in place November 28, 2011 February 2, 2014 will increase. No maximum rates will decrease as a result of this change. In some counties there may be an increase in one rate level but not another. For example, a particular county s maximum rate for infant care in a center may increase, while the maximum rate for preschool care in a center remains the same. Maximum registration fees will not change as a result of this legislation. Maximum registration fees in place November 28, 2011 will remain in place. For more information on this rate change see the FAQ available on the DHS public website. New maximum rates are published in edocs. For specific rates, see the CCAP Standard Maximum Rates - Effective February 3, 2014 (DHS-6441B) and the CCAP 15 Percent Quality Differential Maximum Rates - Effective February 3, 2014 (DHS-6442B). Links to these rate documents can also be found on the DHS Child Care Assistance webpage. Refer to the CCAP Program Policy Manual Chapter 9 for more detailed information on CCAP policies related to payment and maximum rates. For more information on other legislative changes impacting maximum rates, see sections VI and VII of this bulletin.
8 Page 8 B. Required Action 1. MEC 2 Instructions Standard and 15 percent quality differential CCAP maximum rates will be updated in MEC 2 on February 3, No worker action is needed to implement the maximum rate change. 2. At-Risk and Special Needs rates At-risk and special needs rates will not change as a result of this legislation. In situations where the at-risk rates or special needs rates boxes are selected, the provider will continue to be paid the selected rate. For individual special needs rates, new rates will be considered by DHS upon renewal. For rates paid to programs serving At-risk population, contact the county technical liaison if changes to rates are being considered by the county. VI. Child care centers accredited by accrediting organizations eligible for higher rates A. Program policy and requirements 1. Process for determining the list of approved accreditations Licensed and license-exempt centers accredited by certain accrediting organizations are eligible for a 15 percent higher rate for quality, not to exceed the provider s charge. An application process has been established to determine the list of approved accreditations. Current accrediting organizations were required to apply by August 1, 2013 to be considered for approval. Applications were evaluated by the Minnesota Department of Human Services to assess the rigor of each accreditation process in order to determine the list of approved accreditations that will qualify child care centers to receive the 15 percent higher rate for quality. The accrediting organization application will be reposted on July 1, 2014 for organizations interested in having their accreditation added to the list of approved accreditations. 2. Approved accrediting organizations effective February 3, 2014 Early care and education centers with the following accreditations are eligible for the 15 percent higher rate for quality: Note: * indicates new accrediting organizations recognized for higher rates. Accredited Professional Preschool Learning Environment (APPLE), offered by the Florida Association for Child Care Management (FACCM)* American Montessori Society (AMS) School Accreditation Association of Christian Schools International (ACSI) Accreditation* Association of Montessori International USA (AMI) Montessori School Recognition
9 Page 9 Council on Accreditation (COA) Early Childhood Education (ECE) Program Accreditation National Accreditation Commission (NAC) for Early Care and Education Programs Accreditation* National Association for the Education of Young Children (NAEYC) Accreditation National Early Childhood Program Accreditation Commission Inc. (NECPA) Accreditation The NHSA Quality Initiative: Head Start Performance Excellence and Quality Recognition Program, offered by the National Head Start Association (NHSA) School-age and after-school centers with the following accreditations are eligible for the 15 percent higher rate for quality: Council on Accreditation (COA) Afterschool (ASP) & Youth Development (YDP) Program Accreditation Minnesota Afterschool Accreditation Program (MAAP), offered by the Minnesota School-Age Care Alliance (MNSACA)* Note: Licensed family child care and legal non-licensed providers with certain credentials or with the National Association for Family Child Care (NAFCC) accreditation are eligible for the 15 percent higher rate for quality. 3. Verification requirements In order to receive the 15 percent higher rate for quality, not to exceed the provider s charge, the provider must request the higher rate and submit verification showing that they hold one of the approved accreditations. Providers may request the higher rate on their Registration and Acknowledgement Form (DHS-5190 and DHS-5191) or on the Quality Differential Rate Request Form (DHS-4795) or by sending a qualifying accreditation certificate with a written request. B. Required Action 1. Form Changes The provider Registration and Acknowledgement Forms (DHS-5190 and DHS- 5191) and the Quality Differential Rate Request Form (DHS-4795) have been updated to reflect the list of approved accreditations and have been posted on edocs. Begin using the updated forms immediately. 2. MEC² Instructions Refer to the MEC² User Manual Accreditation section for instructions on how to enter provider accreditation information in MEC². On February 3, 2014, the Accreditation Type field dropdown list for licensed and licensed-exempt
10 Page 10 centers on the Accreditation window will be changed to include only the approved accreditations listed above. For providers that submit verification of an approved accreditation prior to or on February 3, 2014, the Differential Begin field should be coded as 2/3/2014. For providers that submit verification of an approved accreditation after February 3, 2014, the Differential Begin date should be coded as the first Monday following the date the agency received the verification. In order to avoid possible overpayments, ensure that you have verification of the specific accreditation selected prior to entering the information. VII. Providers with a three- or four-star Parent Aware rating eligible for higher rates A. Program policy and requirements 1. Providers eligible for higher rates for quality Effective March 3, 2014, highly-rated licensed family child care providers and child care centers participating in Parent Aware are eligible for higher rates for quality. Providers with a three-star Parent Aware rating are eligible for up to 15 percent above the standard maximum rate, not to exceed the provider charge. Providers with a four-star Parent Aware rating are eligible for up to 20 percent above the standard maximum rate, not to exceed the provider charge. Parent Aware is Minnesota s Child Care Quality Rating and Improvement System. For more information about Parent Aware, visit or call (888) If a provider is both three-star Parent Aware rated and holds an approved accreditation/credential, they are eligible for up to 15 percent above the standard maximum rate. If a provider is both four-star Parent Aware rated and holds an approved accreditation/credential, they are eligible for up to 20 percent above the standard maximum rate. Providers do not need to hold an approved accreditation/credential to receive a higher rate for being three- or four-star Parent Aware rated. The Provider Registration and Acknowledgement Forms (DHS 5190 and 5191) have been updated to include information for providers regarding Parent Aware. DHS will enter rating information. See Required County Actions for more information.
11 Page 11 For specific rates, see the CCAP 15 Percent Quality Differential Maximum Rates - Effective February 3, 2014 (DHS-6442B) and the CCAP 20 Percent Quality Differential Maximum Rates - Effective March 3,2014 (DHS-6824), available on edocs. 2. Effective date of higher rates For providers with an active registration that have a three- or four-star Parent Aware rating prior to March 3, 2014, the effective date of the higher rate is March 3, For providers with an active registration that obtain a three- or four-star Parent Aware rating on or after March 3, 2014, the effective date of the higher rate is the Monday of the week that the Parent Aware rating is entered in MEC², not to exceed 30 days after the date the provider s Parent Aware certificate was issued. If the Parent Aware rating is entered in MEC² more than 30 days after the date the provider s Parent Aware certificate was issued, the effective date of the higher CCAP rate is the Monday of the week containing the 30 th day. For providers with a three- or four-star Parent Aware rating without an active registration, the effective date of the higher rate is the Monday of the week that the Parent Aware rating is entered in MEC², not to exceed 30 days after the date the provider is registered. If the Parent Aware rating is entered in MEC² more than 30 days after the date the provider is registered, the effective date of the higher CCAP rate is the Monday of the week containing the 30 th day. B. Required Action A new Parent Aware window will be added to MEC² in March The Parent Aware window will be located within the Information window of the provider area. The Parent Aware window is only updatable by DHS staff. County staff will not be able to update the Parent Aware window, but will be able to view the window. DHS staff will track providers with Parent Aware ratings, including newly registered providers, and will enter the Parent Aware ratings in MEC². Parent Aware ratings of one-, two-, three- and four-stars will be entered. Only three- and four-star ratings affect the maximum rate the provider can be paid. Once DHS has entered a three- or four-star Parent Aware rating, MEC² will generate new Service Authorization results. Case workers will receive an alert notifying them that unapproved Service Authorization results exist. In order for the higher rate to be applied, case workers must approve the Service Authorization results for each case. If a three- or four-star Parent Aware rating ends, MEC² will generate new Service Authorizations results allowing for a fifteen day notice of adverse action. The nightly batch processing will also generate a fifteen day notice of adverse action to the
12 Page 12 provider notifying them that their Parent Aware rating is ending. Case workers will receive an alert notifying them that unapproved Service Authorization results exist. In order for the higher rate to end, case workers must approve the Service Authorization results for each case. Counties do not need to inform DHS of Parent Aware rated providers. If a provider contacts the county and believes that they should be eligible for the higher rate and the Parent Aware window is not completed, counties should contact their CCAP technical liaison for assistance. VIII. Legal References Minnesota Statutes, sections 119B.011 to 119B.26 Minnesota Statutes, section Minnesota Rules, parts to Federal Child Care and Development Fund, 45 C.F.R. Parts 98 and 99 Americans with Disabilities Act (ADA) Advisory This information is available in accessible formats for people with disabilities by calling (651) (voice) or by using your preferred relay service. For other information on disability rights and protections, contact the agency s ADA coordinator.
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