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I work with a childcare agency/voucher system. They require me to ensure that my private rates are higher than the ones they pay me for the voucher families. That’s fine. They then proceeded to tell me however that if I wanted to charge one of my private families $10 a day to help them out of the kindness of my heart that it is illegal because it is less than the voucher rates even if I only had all private pay families. Is this true!!?!?!?! I really can’t charge charitable prices if I want to? This is MY business. The question is this; Can the EEC really regulate my rates?
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I do not know the answer to your question but if so that would ****. I do know some voucher systems depending on the state seems to require providers to charge the same amount to all families meaning you cannot charge higher tuition to private pay families. -
I have no idea about your particular question but I do remember a training that told us if we didn't charge what the state paid, we could write up some sort of form indicating we were giving the family a scholarship(I think that was the word??)of $x amount.
I have never charged what the state pays me for childcare subsidy. It's a lot more than what I charge my parents, which is really nice when I have state-paid dcfs but most are private pay now.
And I'm beginning to find the term 'my business' almost laughable in a very sad kind of way. The state has now entered and taken so much of it over.
There isn't a lot we can call our own in it anymore.
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If I understood this correctly, they may be correct: http://www.eec.state.ma.us/docs1/New...her_manual.pdf
Upon the CCR&R or EEC’s request, but no less than once per year, Providers/Systems must submit
their public or private pay rates that they (or their affiliated providers) charge for early education and
care services before they can receive payment. Providers/Systems and System-affiliated providers
must not charge/bill the CCR&R and/or EEC a higher rate for families receiving early education and
care subsidies than they charge for private paying families for the same type of care, unless the
Provider/System has sufficient restricted revenue to offset the difference between the
Provider/System’s voucher reimbursement rate and the lowest rate charged to any of its privately
paying families (multiplied by however many contract/voucher/grant slots the Provider/System
holds). The revenue must have been restricted in writing by the donor specifically for the purpose of
offsetting privately paying parents’ rates for child care prior to the period in which such funds are
being used. The Provider/System must include any information about scholarships/discounts that
may be offered to private paying parents, including, but not limited to, discounts for early payments
with the submission of private rates. The Provider/System must maintain records to document the
off-set available for any years where discounted rates are charged to private paying families or
scholarships are offered.
The CCR&R and/or EEC may implement rate increases and/or decreases depending upon the
availability of funding.Comment
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Legally I do not know the answer either but my guess is they CAN. Any time you work with subsidized families it seems they require something similar.
This is why many providers don't accept vouchers or state assisted families. Participating in such programs often times does give them the right to dictate your rates and how you manage them.Comment
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I don't take subsidy clients because it's a headache.Comment
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I may go this direction.Comment
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In my state, the rule is that I can not charge families on assistance more than I charge other families. I can charge my private pay families anything I want, I can charge my assistance families anything I want, I just can't charge assistance more per hour (I can charge more per WEEK, if that charge is based on hours in care). I can only charge assistance families what my declared rate is (which I can change any time by submitting a new rate declaration), and while assistance will only pay $2.45-$2.50/hour per child based on age, I can and do charge the parents the difference between what I charge and what the state pays.Comment
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I have to charge everyone the same amount....but the state reimbursement rate is below market rate, so I'm supposed to charge my subsidy families the difference. I don't charge them the difference, I just only take one subsidy family at a time so I can help out but also afford it.Comment
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I've had my day care for over 20 years and have never heard that. I've also never had a licensor ask me what I charge. I have filled out a form they use to put my child care info online and my rates are included in that information but as far as I know, it's just so parents have the info - not so the state knows and can regulate what I charge. If you licensor says something different, could you please update. I'd be interested in knowing what she says.Comment
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Update
Yes, my licenser confirmed today, if I have only private pay, I am free to charge as I wish. I had just been misinformed by the agency. They are all wonderful people there, just a handful to work with sometimes!Comment
I didn't think so but you never know these days! I'll have to seriously consider handing in my license if they ever start to regulate private pay rates.
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