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I am planning on opening next month, so I have started spreading the word and put an ad on craigslist. The ONLY people who have called/emailed are people who want me to take pay from DHS (state pay). Most of them have said that they only want an interview if I will take it b/c where they are now does not, and they need to find a place that will. I totally understand the need for families to get assistance when needed. Michigan's economy is horrible right now, but I have heard so many bad stories about families on state aid not reporting their hours and their providers not getting paid, that it makes me VERY hesitant. I have started telling people that I will consider it on a case by case basis after interview. What do you all think?
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Have you researched what all is required to take state pay in Michigan? I would start there and see what you have to do as a provider to make sure you are reimbursed appropriately. It really depends on if you want to deal with the system and how badly you need kids to get started. I personally do not take state pay families. It is extra work for me and I do not have to do that in order to get new families. There have been a few times that I have considered it though in an attempt to fill a slot so I understand your dilemma. There are certainly a lot of stereotypes about working with state assistance families so I would carefully interview each family (as I would anyone) to try and weed out those that seem unreliable and unstable. Good luck to you! -
I have not had to take state pay in 5 years. The new process is more complicated that it was when I last did it. I guess now that the parents also have to send in the hours and they have to match what the providers hours are otherwise you don't get paid. If you do take it don't wait for the state pay to start because it could take a couple of weeks. I have them pay me regular fees and then when the state pay starts I give it back.
Even though I do understand that with the economy as bad as it is, I choose not to take state pay. The extra paper work is a pain. If you do take them make it clear that the hours need to match so you get paid on time and if they don't they will be responsible for payment.Comment
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I only have state paid at this time. I have only been running my daycare for 5 years but in that time 90% of my clients have been state. The problem I found with private pay is people don't want to pay much for child care around here. I have had parents tell me I charge way too much how are they supposed to live after paying for care etc. I only charge $20 per day for preschool and under and $15 per day for school aged. I don't think that's bad because if people can't afford that then they are elligible for state assistance.
I have never ran into a problem where the state didn't pay (knock wood) but I know there is that possibility. Personally I think it is very unfair for the state to withhold our hard earned income because a parent lied etc. I was just discussing this with another provider the other day. There has to be some way to go about changing that. It should be the parent punnished for what THEY do to lose care. We aren't paid very much to begin with. That $20 that the state pays me is for care up to 12 hours! That's bull! I would never expect anyone work for $1.60 an hour. Luckily I'm only open 10 hrs and I have other kids in care.
I have in my contract that any fees not paid they will be responsible for and if it ends up in court then they would also be required to pay those costs.
I don't want to stereotype either but in my 5 yrs experience I have had more problems with state assisted parents. I really don't get it either it's usually not paying on time and they pay a tiny percent. The most I have seen them pay is $2 per day and that's with the parent earning $1,800.00 every month. I have even had parents that aren't required to pay anything and still had problems with things like picking up on time because they want to go out or they want to go shopping without their kid. Sorry the state only allows the hours they need so when they go over I'm stuck. Enter my late pick up fee which the parents are responisble for.
Thank God they offer the food program here or I would really be hurting.This is 1 of my biggest issues as a provider so I just had to speak up sorry it got so long.Comment
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Thanks
I have researched it, and as Morgan said, parents have to report the same hours as I do, otherwise I don't get paid. I think this is why so many places are not taking state pay, and why so many families are looking.
Great idea, thanks! I didn't even think of that. Can we charge a co-pay for what the state doesn't cover in Michigan? I couldn't find any info about that on the state website.
Wow, that is not a lot of money for a lot of hours of care
Thanks for letting me know how it is for you. Definately helps me make a decision. I am planning on doing the food program, so hopefully that helps, but I know that takes a while to get going too. Hopefully I can find some clients who don't need me to take state pay. I really don't want to deal with it, but if I have to, I will.
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I have 4 families (we are licensed for 16) that are state. Here in Utah, the state pays up front on the first of each month for care. I have found the problem I face most is parents not turning in all their paperwork to the state when it comes to review time (every 6 months) But I am very strict with them. If the money is not on their card on the first, their kids don't stay until it is. I have had both good and bad parents that are on state. Some are on it due to circumstances beyond their control and they are grateful for the help and work with me to make sure all goes smoothly. Sadly, others are lazy and feel like the world owes them a living and complain that they even have to pay a few dollars out of their own pockets for day care. They are also the ones who will not call if they are going to be late etc. Over the years I have just made sure that I MAKE them understand that my rules are followed or they are outta here! I've canned a few because they just don't listen.Comment
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I am in MI and accept state subsidy, not because I like it but because I have to survive. Can't get enough private pay customers any longer with the unemployment rate so high. I learned that the parent must pay up front and I'll credit their account when and if the state kicks in(up to 45 days and used to be 90) or they walk and you get nothing. Don't let them skate. When they show up without their share, STOP CARE EFFECTIVE IMMEDIATELY until they pay.
I charge my regular rate, the state pays up to 95% of $2.40(usually $2.28) per hour up to 90 hours per biweekly pay period. Parents pay the rest as copay. For example: Weekly Rate is $175, State pays $102.60 per week Parent copay is $66.15 - all based on a 45 hour work week.
As far as parents not calling in their hours - If they don't, care stops immediately! I had a few problems when this system first started but no longer do. I go online every other Sat after care and give parents a copy of the hours on Mon. They go online or call by Thur @ midnight to post their hours and you can check to see if they did or not online and/or remind them daily till they do.
The biggest problem I have had is with parents that want me to bill for hours they did not work or parents that left care w/o paying me their share and I had to go after my $$$. Twice those parents called the state and said I was in violation and was investigated by licensing. Nothing was substantiated and I took them to court to attempt getting my $$$.I see little people.Comment
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I am not in MI, but our child care assistance program worked very similar but has since changed to a much easier process. But I wanted to say that what childminder said it really the key to any program; ENFORCING the rules and not allowing anyone to go outside of what is expected and required of them.
The minute a parent does not fulfill their end of the agreement then do not provide care. If you do exactly what is outlined in your responsibilties as a provider and hold the parent to their responsibilites then I really do not see having any more problems than you could potentially have with a private pay family.Comment
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I have a friend in Michigan, and she's had SOOO many problems with state paid.
Even if the parent really tries to do it right, the state finds some say to dock the provider for some mistake the parent made. It's almost as if they make it too hard to get reimbursed.Comment
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I am not from Michigan but from California and state pay works different here so I know I can't give you specific advice but I'd like to say that at first I also was hesitant to accept state pay but for different reasons (I thought that low-income pay meant bad low-income families, etc). I was having trouble finding clients and so hesitantly I accepted state subsidy. To prevent going through the hassle of having a family that didn't complete the paperwork I just simple thought of them as private pay through the entire interview process. If they were late to an interview or didn't show up and didn't call first ... NEXT. If I called them to ask questions and they didn't return my calls ... NEXT. If they returned incomplete paperwork or tried coming their first day of care without their paperwork or supplies ... NEXT. It just showed me what I was going to be dealing with and where their priorities and sense of responsibility and respect for me fell. Just be really alert and observant of their habits and behaviors.
If all you are getting is calls for state subsity clients then you could accept a few (some money is better than no money) and see how it goes. If it's too much hassle and the client doesn't keep up with their paperwork then you could always just give them notice and replace them with another family. Eventually I'm sure you'll get some private pay calls and if the interview process goes well you can always let go of a subsidy pay client if you are full. I started with all state pay clients and now I only have 1 family that is on state subsidy.
I suggest you call your local state subsidy offices and ask about their regulations about having them pay firsthand and then reimbursing them afterwards. I do that and it works well. Here it takes 2 months to get the first check so that was important for me. DHS here doesn't pay for late payment, late/early pick-ups or drop-offs, bounced check fee's etc. so I added this policy to my handbook and the parents are responsible for paying these fees on the spot. Some states allow it and others don't. Also here DHS is really good about sending our notices to both the parents and the provider when there is a problem with a clients paperwork. Both the client and I get a notice of action and so I can remind them if I have to that if I their account gets suspended or cancelled then they have to pay or I won't let them bring their child.
Of course here things are easier. Here we don't have to worry about sending in our hours and having them match up with their hours. Here we have one sign-in sheet that they sign everyday at drop-off and pick-up and then again on the bottom at the end of the month. It's my responibility to mail it or to drop it off (which I prefer so that I know that it gets done). You could always require your DHS families to sign in everyday at your daycare and then bring their sheet in (if you have a sheet) or to call their hours in (if you have to call) from your daycare at pick-up on the last daycare day of the month and go by the hours that you have, that way you don't have to worry about turning in different hours.Comment
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Wow! I need to count my blessings! State pay is soooo much easier here (Utah)!
When a client signs up, I just fill out a form that tells the state the number of hours I have contracted with the client and how much I charge. They turn that into the state. They are approved for 6 months at a time. I don't send in anything else...no hours etc. each month, the state puts the day care money on their welfare card. I have the number to their card and just punch in a code on the phone and the money is automatically transferred from their card to my bank account! The state has a web site just for providers that tells us before the end of each month how much money is going to be on the card the next month. So no surprises! If we know the money isn't going to be there, we let the client know they will have to self-pay or they can't come.
Sending in hours etc would be such a pain! Luckily, the state here asked providers how they could make life easier. They figured the effort and paperwork should mainly be on the welfare recipient's shoulders and not ours.
If the client brings their kids when they are not working (not allowed), the state does not hold us responsible at all. The client has to pay it back to the state.Comment
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I am located in MN and was told that I had to be willing to accept state pay. Now, I am sure you could easily come up with a reason they aren't a 'good fit' for your facility, but we are not allowed to say no due to accepting state pay...at least that is what my licensor told me.Comment
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OK MY state just ****s! Sorry to be so blunt but my goodness after reading other states policies ours stinks!
I am not allowed to charge the parent for care at all up front! It says in the state handbook to parents something like, if a provider should try to collect any money other than the authorized daily fee the parents are to inform the office immediatley. They made a change last yr that we can now charge for late pick up thank God! I feel our state treats the providers lousy in some aspects. Even the pay isn't fair. They will pay a center a lot more for the same kid than they will pay us. We take the same classes (actually sit together in the same class room) and have visits from the monitor as well etc but centers get more.
What home providers get paid for days and partial days.
0-2 hours = $5
2-4 hours = $10
4-12 hours = $20
after 12 hours they add $4
That is just for preschoolers. School aged children (K - 12) we only get a max of $15 per day, unless they are here OVER 12 hours then we get that $4 bonus woohoo.
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SO TRUE. Most of the ones I get have been working the system for YEARS. Low lifes for sure. If any doubts when you meet them JUST SAY NO!!!! Any Issues at all JUST SAY GOODBYE!!!!was hesitant to accept state pay but for different reasons (I thought that low-income pay meant bad low-income families, etc). I was having trouble finding clients and so hesitantly I accepted state subsidy. To prevent going through the hassle of having a family that didn't complete the paperwork I just simple thought of them as private pay through the entire interview process. If they were late to an interview or didn't show up and didn't call first ... NEXT. If I called them to ask questions and they didn't return my calls ... NEXT. If they returned incomplete paperwork or tried coming their first day of care without their paperwork or supplies ... NEXT. It just showed me what I was going to be dealing with and where their priorities and sense of responsibility and respect for me fell. Just be really alert and observant of their habits and behaviors.
I'm movin to UTAH!!!Wow! I need to count my blessings! State pay is soooo much easier here (Utah)!
When a client signs up, I just fill out a form that tells the state the number of hours I have contracted with the client and how much I charge. They turn that into the state. They are approved for 6 months at a time. I don't send in anything else...no hours etc. each month, the state puts the day care money on their welfare card. I have the number to their card and just punch in a code on the phone and the money is automatically transferred from their card to my bank account! The state has a web site just for providers that tells us before the end of each month how much money is going to be on the card the next month. So no surprises! If we know the money isn't going to be there, we let the client know they will have to self-pay or they can't come.
Sending in hours etc would be such a pain! Luckily, the state here asked providers how they could make life easier. They figured the effort and paperwork should mainly be on the welfare recipient's shoulders and not ours.
If the client brings their kids when they are not working (not allowed), the state does not hold us responsible at all. The client has to pay it back to the state.
If you decide to take state pays just make sure you have a really good contract - signed with all i's dotted and t's crossed. AND STICK TO IT! They get away with one late pay or late report or anything say BUH BYE!
Let me go on to say that I have also gotten some golden families from my state subs and these families I would not give up for the world.I see little people.Comment
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