How Do You Charge/Prorate State Assisted Families?

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  • MrsCoffee
    Daycare.com Member
    • Feb 2010
    • 71

    How Do You Charge/Prorate State Assisted Families?

    I will be taking children at the end of this month that receive state assistance, I am going to prorate the families dues as I am payed upfront and weekly. I thought take it off the next month or week depending on how the state pays me. Also this will save me in case the parents forget to call in their hours.

    :confused: Anyone have any advise?

    Also how does it work, being paid from the state? I am in Michigan.

    Thanks in advance
    Kelly
  • actaktmdt
    Daycare.com Member
    • Feb 2010
    • 140

    #2
    Originally posted by krogers1982
    I will be taking children at the end of this month that receive state assistance, I am going to prorate the families dues as I am payed upfront and weekly. I thought take it off the next month or week depending on how the state pays me. Also this will save me in case the parents forget to call in their hours.

    :confused: Anyone have any advise?

    Also how does it work, being paid from the state? I am in Michigan.

    Thanks in advance
    Kelly
    Kelly
    This reminds me to send in my app to be a state aide provider...FYI im not sure if you know this or not but the hours have to match up exactly in order to get paid from the SOM, several providers that i have talked with require that the parents sit down at the computer and they input the hours together online.....Daycare provider puts in hours, then parent signs in under there info and puts in the same hours all compleated in the proivders home....that way you guarentee that the parents dont make a mistake or "forget" to do it. and you get paid....

    Comment

    • MrsCoffee
      Daycare.com Member
      • Feb 2010
      • 71

      #3
      State aide provider?

      Do I need to fill one out? I am in Michigan. I am set to start the week of the 26th. The parents are very sweet and probably the only parents I would do this for. I have heard to many horror stories! They know that they will pay me until the state gets the checks flowing. What I had originally thought was that they could pay me a "copay" ie whatever the state doesn't pay or the difference. I guess this is the same thing only it really puts the ball in their court, if they forget to submit their exact hours then they will not have the appropriate amount prorated off the next weeks/months dues.:confused:

      Comment

      • MarinaVanessa
        Family Childcare Home
        • Jan 2010
        • 7211

        #4
        Wow, that sounds awful. Makes sense why many providers don't like to do state assistance. Here in CA (I take state assistance) we get a sign-in/out sheet per child mailed directly to our daycare and the parent comes in and signs their child/ren in and out by putting in their date and sign after each. The last day of the month of care they sign at the very bottom and date it and then I either mail it in or I can just drive it over (it's only 5 minutes away). Then I just get the check in the mail the 1st week of the next month. Sounds to me like some states make it harder than others.
        Last edited by Michael; 04-12-2010, 10:17 PM.

        Comment

        • actaktmdt
          Daycare.com Member
          • Feb 2010
          • 140

          #5
          Originally posted by krogers1982
          State aide provider?

          Do I need to fill one out? I am in Michigan. I am set to start the week of the 26th. The parents are very sweet and probably the only parents I would do this for. I have heard to many horror stories! They know that they will pay me until the state gets the checks flowing. What I had originally thought was that they could pay me a "copay" ie whatever the state doesn't pay or the difference. I guess this is the same thing only it really puts the ball in their court, if they forget to submit their exact hours then they will not have the appropriate amount prorated off the next weeks/months dues.:confused:
          Yes you need to fill out the form for the state to recognize you and then you have to attend an orientation as required by DHS before the state will start paying you....off to go find the info for you.

          Comment

          • actaktmdt
            Daycare.com Member
            • Feb 2010
            • 140

            #6
            Originally posted by MarinaVanessa
            Wow, that sounds awful. Makes sense why many providers don't like to do state assistance. Here in CA (I take state assistance) we get a sign-in/out sheet per child mailed directly to our daycare and the parent comes in and signs their child/ren in and out by putting in their date and sign after each. The last day of the month of care they sign at the very bottom and date it and then I either mail it in or I can just drive it over (it's only 5 minutes away). Then I just get the check in the mail the 1st week of the next month. Sounds to me like some states make it harder than others.
            we were told in oritation that they went this route due to high fraud with daycare providers..

            Comment

            • Childminder
              Advanced Daycare.com Member
              • Oct 2009
              • 1500

              #7
              I'm in MI and take state subsidy children. All I can say is Good Luck! It's been a hassle dealing with the state and state paid parents. First of all the have to apply and you need to fill out a provider verification form for each family. Then the state takes at least 45 up to 90 days to determine if family qualifies and for how much. I learned from experience that you need to make the parent pay for full until you get your first check from state. You can then reimburse the parent or apply the amount to their copay.

              Let's say you charge $150 per week for childcare. After Saturday or when the child leaves the last day of child care for the pay period you get to bill. When you finally get to bill the state you will go on line to MI.gov/dhs and sign in to online billing, enter your state ID and password and enter the hours and amount charged for each child and pay period, (which should be $300 if your ft rate is $150) and submit the form. The parent will then need to sign in or call in their hours before Thursday night at midnight to enter their hours which must match yours. (I just print out what I submitted and give to them.) One week from Thursday you should receive your check(or direct deposit).

              The state, in my zone, pays $2.40 per hour ($2.90 for under 2 1/2) per child which comes out to $216. per 90 hour approved (the maximum they'll pay), the rest ($84) is the parent pay. Oh yeah don't forget the union dues that will be taken out(1.15%) which would be $2.48 of the $216.

              As I said Good Luck! It is a hassle and I wonder if it is worth it, but I have a hard time getting children and the economy ****s around here so I do it.

              Oh and good luck dealing with caseworkers!!!! They won't call back, won't talk to the provider, and if the parent finally gets through to their phone (the mail box is full) and leaves a message they don't call back!!!!!
              I see little people.

              Comment

              • actaktmdt
                Daycare.com Member
                • Feb 2010
                • 140

                #8
                The application
                http://www.michigan.gov/documents/dh...A_194099_7.pdf,

                I am not sure who you mail it to. it does not tell you. I would contact your licesenure at DHS to find out if they know...or at least can direct you to that department of dhs.

                Comment

                • Childminder
                  Advanced Daycare.com Member
                  • Oct 2009
                  • 1500

                  #9
                  Send it to Lansing
                  I see little people.

                  Comment

                  • momma2girls
                    Daycare.com Member
                    • Nov 2009
                    • 2283

                    #10
                    When I did state aid children about 5 yrs. ago, I only received $7.20 per 4 hrs. for each child!! The parents didn't pay anything to me. So I received a whole $14.40 per day for each child. I charged $25.00 for the 1st child, and $20.00 for the 2nd one. So I lost like $17.00 per day on both of them. SO you figure that x 5 days/week- $85.00 per week, x 4 weeks- $340.00 per month!! THat is quite a bit of money!! The kids were rotten, stole things, stole pop, money, sprayed pop on each other downstairs, after they stole it from my fridge. I had them during the summer, they were 8 and 10 yrs. old. I finally stopped them coming after I knew they stole the pop and the money from my daughter, It was so not worth it!!! I will never do it again!!!!

                    Comment

                    • momma2girls
                      Daycare.com Member
                      • Nov 2009
                      • 2283

                      #11
                      When I did state aid children about 4 yrs. ago, I only received $7.20 per 4 hrs. for each child!! The parents didn't pay anything to me. So I received a whole $14.40 per day for each child. I charged $25.00 for the 1st child, and $20.00 for the 2nd one. So I lost like $17.00 per day on both of them. SO you figure that x 5 days/week- $85.00 per week, x 4 weeks- $340.00 per month!! THat is quite a bit of money!! The kids were rotten, stole things, stole pop, money, sprayed pop on each other downstairs, after they stole it from my fridge. I had them during the summer, they were 8 and 10 yrs. old. I finally stopped them coming after I knew they stole the pop and the money from my daughter, It was so not worth it!!! I will never do it again!!!! SORRY THIS SOMEHOW GOT ONHERE TWICE!!!! I DON"T KNOW HOW TO DELETE ONE OF THEM< SORRY!!!!!

                      Comment

                      • GretasLittleFriends
                        Daycare.com Member
                        • Feb 2009
                        • 934

                        #12
                        In Minn it's very easy to work with state assistance. You fill out a form for the county the parent lives in. The county either approves or denies you. (At least I think they can deny you, don't know, never experienced it). They send you a form that is for two weeks, you fill it out with the hours the child are here each day during that two weeks. You fill in details about how much you charge whether it's hourly, daily, weekly... How many units (h, d, w) they were here, any other fees (though the county doesn't pay late fees). Some parents have a copay, you also report if they pay that. If they don't they can get kicked off the assistance.

                        Originally posted by Iowa daycare
                        When I did state aid children about 5 yrs. ago, I only received $7.20 per 4 hrs. for each child!! The parents didn't pay anything to me. So I received a whole $14.40 per day for each child. I charged $25.00 for the 1st child, and $20.00 for the 2nd one. So I lost like $17.00 per day on both of them. SO you figure that x 5 days/week- $85.00 per week, x 4 weeks- $340.00 per month!! That is quite a bit of money!!
                        Here, if I charged $25/day for the child and the county only covered $14.40 the parents ARE responsible for the other $10.60. Of course, I do have it written in my contract that way too, just to be sure.
                        Give a little love to a child, and you get a great deal back.

                        Comment

                        • grandmom
                          Daycare.com Member
                          • Mar 2010
                          • 766

                          #13
                          Just for comparison: Washington

                          State sets rate we are to be paid. Parents pay a state-set co-pay based on their income. We are not allowed to charge parents the difference, so we lose money on each child. Parents sign in, we invoice state at the end of the month on an automated phone system or by mail. Check is deposited directly. Parents keep no records of attendance.

                          Comment

                          • Childminder
                            Advanced Daycare.com Member
                            • Oct 2009
                            • 1500

                            #14
                            We already have such a limited income as providers and the ratios the state mandates. I wouldn't do state subsidy in a state that won't let us charge parents for the remaining amount. What other business do people work in that has a ceiling on income? Geesh. Why do we do it? It's not for the big bucks, that's for sure.
                            I see little people.

                            Comment

                            • momma2girls
                              Daycare.com Member
                              • Nov 2009
                              • 2283

                              #15
                              Originally posted by GretasLittleFriends
                              In Minn it's very easy to work with state assistance. You fill out a form for the county the parent lives in. The county either approves or denies you. (At least I think they can deny you, don't know, never experienced it). They send you a form that is for two weeks, you fill it out with the hours the child are here each day during that two weeks. You fill in details about how much you charge whether it's hourly, daily, weekly... How many units (h, d, w) they were here, any other fees (though the county doesn't pay late fees). Some parents have a copay, you also report if they pay that. If they don't they can get kicked off the assistance.



                              Here, if I charged $25/day for the child and the county only covered $14.40 the parents ARE responsible for the other $10.60. Of course, I do have it written in my contract that way too, just to be sure.
                              I guess it is illegal in Iowa to charge the parents the difference. I actually tried that, and that is what the state worker told me. Also another thing I couldn't turn in the paperwork til the end of the month, then it took 3-4 weeks after that for me to get paid. So that is on top of not getting paid near enough, you are 2 months behind on their payment!!!

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