Those Who Accept DHS Payments

[Kelly]

I have a dcm who gets state assistance. I have her pay my regular weekly fee upfront just like any other family and when I get the check from the state (can't always predict when it will come) I credit the amount to her next week's payment. That way I am always paid on time no matter how slow the state it to pay.

[midaycare]

I have a dcm who gets state assistance. I have her pay my regular weekly fee upfront just like any other family and when I get the check from the state (can't always predict when it will come) I credit the amount to her next week's payment. That way I am always paid on time no matter how slow the state it to pay.

That is a great idea!

[rebekki78]

I do recommend that you have the parent pay IN FULL until the State approves and you can start billing. Then you can credit their account and they won't have to pay copay for a few weeks until it evens out. You will get screwed by the parents if you don't. They might not get approved. The parent won't be able to pay and go BuhBye! It happens.

This! Even when state agrees to pay, I always have parents cover my rate first. Then whatever DHS pays, it comes off of the parents next invoice. (I stole this idea from a lady on my Facebook group! Love it! Am now implementing it!) DHS is not a always a consistent payment. EDIT: I didn't realize Kelly up there already said this

In Michigan, always ask for parents work schedule, directly from their work after they have worked the two weeks that you are claiming. I recently got put on "probation" for claiming hours that parent was not at work. I did not know said parent was not at work since parent did not disclose this info to me. CDC said it is the relationship between the provider and th parent. Well, there went that relationship.

It can be such a mess dealing with DHS. It can also go smoothly. I have just never had a good experience with it.

[rebekki78]

Am I understanding right that I don't actually sign up to accept DHS payments, rather they need to send me a letter stating that the child is accepted under their program and it will contain all the information I need?

Correct. It's a confusing start up process. I called them many times to ask questions.

Here is a link to the "handbook" http://www.michigan.gov/documents/md...3_428431_7.pdf

[Cradle2crayons]

Here in ms we get approximately $.80 an hour averaged out.

But they don't pay by the hour... They pay by the day... And allow approximately 22 days of care per month.

So, approximately $40 a week per kid. For special needs kids they pay approximately $50 per week.

And I charge the parents the difference.

I submit attendance electronically by the 5th of the month for the previous month and I receive a check by the 15th for the whole month previously.

One thing to think about though when you accept state pay is that in most states they only pay if he child is there. So if it's a holiday you would be less that daily amount unless you charge the parents for that holiday.

For instance. In an average week of five days, the state pays me 40.00 which is $8 per day.And the parent pays the difference say $60 a week which is $12 per day. That's $20 a day between both the parent and state.

Say the parent pays the same rate every week of $60 a week or $12 a day whether the child is there or not. So, say Monday is a holiday. Mom pays you $60 for that week but because the state only pays when the kid is here, they would only pay you $32 for that week. Which means you would only get $92 for that week instead of $100 which is your rate.

So I would recommend you think of how you want to deal with this.
(1) are you going to absorb that missing $8 bucks on the weeks of a holiday and be happy the parents are paying THEIR regular $60 for that week which pays $12 for that day the kid isn't there.
OR
(2) are you going to charge the parent the $8.00 for that day the state won't pay for.

Some people do (1) and some do (2) but be sure you address this with the parents and put it into your contract whichever way you choose to do it.

[rebekki78]

In Michigan the parents get 208 hours per year to claim for ill/holiday hours. That gets sketchy though, because they wouldn't allow me to claim ill/holiday hours with one child but they did with another. Sometimes the state just does what they feel like without any explanation really.