State Pay

[Country Kids]

Do you charge your state pay parents as much as your private pay parents, or do you charge what the state will pay you?

I do not have any state parents right now but was wanting to possible look at changing my rates so I pulled up the rates for state pay clients and WOW! If I were to go on their rates I would lose money big, big time. Most of my parents still pay now more than what the state would be will to pay and I charge an hourly rate.

For my area a full-time infant is $455 a month

Toddler=$450

Preschooler=$425

When I figured up some of these full time amounts by the hours you were making less than $2.00 an hour!!!!!!!! No wonder parents don't want to pay what you are wanting to charge if they know some people are getting it for that low even if it isn't coming out of their pocket.

I'm reallly going to have to go back to the drawing board on this!

[sharlan]

I would charge state paid the same as everyone else.

[Blackcat31]

It is illegal where I live to charge state pay families more than private pay families.

I charge everyone according to the same rate scale. Some families pay more and some pay less but it isn't based on the fact they are or aren't on state pay. It is based on the hours/days they need for services NOT where the money is coming from.

My rates are higher than what my state pays so the clients on state pay must pay the difference. For example; the state pays out $28 per day for a daily rate and my rate for the day is $33 so families on state pay $5 more per day in addition to whatever their co-pay is.

[littlemommy]

I have one infant who may be on state pay soon. She's giving me an option. I can look at the state's program to see if it is something I want to do, or she will be getting loans to pay me privately.

She knows that I have tried state pay before and it hasn't worked out. I am very weary about working with the state program. They are HORRIBLE with communication, and have been telling her for 7 weeks that they will be contacting me. I'm going to opt for her to pay me thru the loans.

But to answer your question, I've heard that in the state of NE a provider cannot charge the family any extra. The state pay is $2.25 an hour, and most providers in my town charge $2.50/hr. So the difference isn't a lot, but I would not be getting paid for holidays or days she just wants to take off, so that would be an income cut.

[Meeko]

My state parents pay the same as everybody else. They are required to make up any difference between the state payment and my fee from their own pocket. I am in Utah and this is the requirements. The state makes sure that the parents know this.

I know some states are different and providers cannot charge state parents anything out of their pocket. (I wouldn't take state paid if I was in one of those states)

[nannyde]

Do you charge your state pay parents as much as your private pay parents, or do you charge what the state will pay you?

I do not have any state parents right now but was wanting to possible look at changing my rates so I pulled up the rates for state pay clients and WOW! If I were to go on their rates I would lose money big, big time. Most of my parents still pay now more than what the state would be will to pay and I charge an hourly rate.

For my area a full-time infant is $455 a month

Toddler=$450

Preschooler=$425

When I figured up some of these full time amounts by the hours you were making less than $2.00 an hour!!!!!!!! No wonder parents don't want to pay what you are wanting to charge if they know some people are getting it for that low even if it isn't coming out of their pocket.

I'm reallly going to have to go back to the drawing board on this!

I don't take state paid. The salary in Iowa ****S. It's like 120 for an infant. My lowest rate is 140 for the early departure kids.

So your infants are at about 104 a week and the preK kids are at 99 a week. If they are fifty hour weeks that's about two dollars an hour.

What is the going rate at your centers? I think I was at two dollars an hour about ten years ago or so. I couldn't stay in business with the two dollar an hour... it's too expensive to live here and make a profit at that.

Is the cost of living really low where you live?

[Country Kids]

I don't take state paid. The salary in Iowa ****S. It's like 120 for an infant. My lowest rate is 140 for the early departure kids.

So your infants are at about 104 a week and the preK kids are at 99 a week. If they are fifty hour weeks that's about two dollars an hour.

What is the going rate at your centers? I think I was at two dollars an hour about ten years ago or so. I couldn't stay in business with the two dollar an hour... it's too expensive to live here and make a profit at that.

Is the cost of living really low where you live?

This is all for full-time=136-215 hours a month
State paid for the centers

Infants=$595
Toddler=$575
Preschoolers=$475

No, cost of living isn't low here at all. When people move here from the Midwest or the East Coast they can't believe how high houses are and just the plain cost of living.

Iroically too, we have the highest unemployment for this area but things just keep going up, up, up.

[MarinaVanessa]

I'm in CA and I accept subsity if they qualify. I require the family to pay out of pocket until I get my first check then I reimburse the family back and they no longer pay anything out of pocket other than late pick-up fees or for extra time (if their subsidy doesn't cover it). I charge everyone the same amount (we can't charge clients on subsity a different amount than our private pay clients whether it's more or less).

Depending on the families income and other variables they may have the whole amount covered or may have to pay a "family fee" which is just a small portion of the childcare rate. Whatever subsity doesn't cover the parents have to pay. I know that they have a maximum that they pay out but I charge $160 a week and the family that I had on subsity had it completely covered so I know they'll cover more than the amount I charge a week. The program in our area won't tell us what their maximum payout is so that providers don't all jack up their prices to the maximum and take only state paid clients.

[Sugar Magnolia]

I take state-paid kids, BUT the state-paid kids do have to pay the difference between what I charge and what the state pays. My rate is $195-$175 per week depending on age. The child on state-pay pays me $67 per week. It is illegal for me to charge them different rates than private-paid kids.

[KEG123]

I take state paid kids. The rate is like 35 cents less than what I charge private paid families, so it's not a big deal to me.

[momma2girls]

I don't take state paid. The salary in Iowa ****S. It's like 120 for an infant. My lowest rate is 140 for the early departure kids.

So your infants are at about 104 a week and the preK kids are at 99 a week. If they are fifty hour weeks that's about two dollars an hour.

What is the going rate at your centers? I think I was at two dollars an hour about ten years ago or so. I couldn't stay in business with the two dollar an hour... it's too expensive to live here and make a profit at that.

Is the cost of living really low where you live?

I used to take state children about 5 yrs. ago, I only made $14.50 a day for a 9 1/2 hr. day!!! I used to charge $25.00 a day. It is illegal, from what I am told to charge the family any extra money to make up the difference!! I quit doing it once they left for school!

[MarinaVanessa]

It is illegal, from what I am told to charge the family any extra money to make up the difference!!

Yep, some states and/or programs don't allow it. That stinks because in some states childcare subsidy is SUPER low .

[nannyde]

I take state-paid kids, BUT the state-paid kids do have to pay the difference between what I charge and what the state pays. My rate is $195-$175 per week depending on age. The child on state-pay pays me $67 per week. It is illegal for me to charge them different rates than private-paid kids.

It's the opposite here.

We can charge private more than state but we can't charge the state of iowa more than we charge private.

So if my rate is 200 a week the state pays 120

If my rate is 100 a week the state pays 100

They could care less what we charge privates EXCEPT that it can't be LESS than what we charge the state.

The way my state does it is rediculous. They average the rates for the whole state and offer rates from about 4-5 years ago. So the AVERAGE provider in Iowa charged 120 4-5 years ago.

When they collect rate info they DON'T tell the providers what the info is for. Providers mistakenly believe they are ADVERTISING when they answer it so the ones that offer low ball rates put it in writing. That hurts everyone.

The rural areas charge WAY less than metro Des Moines... specially in areas like WDMMom lives. That's the highest area in the state so it's tough to take state when you live in that area. The mortgages are SO high compared to even my side of town and REALLY compared to rural Iowa towns.

Also we are NOT allowed to charge the difference. If I charge 200 and the state pays 120 I can NOT accept the other 80 dollars. The only exception is if I do babysitting for them for non work hours... then I can charge for that... and late fee stuff.

The way my state sees it is if the client can pay me the 80 extra bucks then they want that 80 to be applied to the 120 they are paying so they then just pay 40.

****y math for us. I would love to be able to afford to take state but it would mean offering a completely different service. I couldn't afford to offer the services I offer now with 120 a week. Nowhere NEAR....

[cheerfuldom]

The few daycares (centers) I have been in in my area are scary. Very shabby buildings and you get that icky feeling when you go in. High ratios and such. Its hard to find a home daycare in my area that takes state pay. I dont know how it works because I personally would not take state pay families. It sounds like it is a big hassle

[jojosmommy]

I used to take state children about 5 yrs. ago, I only made $14.50 a day for a 9 1/2 hr. day!!! I used to charge $25.00 a day. It is illegal, from what I am told to charge the family any extra money to make up the difference!! I quit doing it once they left for school!

If that was the case here NOBODY would accept state funded clients. We are allowed to charge the difference between what the state pays and what we charge everyone else. Also, in our area you can easily qualify for 15% increase in rates if you are licensed teacher or have completed other credientials. 1 piece of paperwork and lots more pay.