The Division of Child Care is announcing that CCAP will stop paying the parent copay portion of the CCAP payment on 09/30/2024. Beginning 10/1/2024, parents will be responsible for the assessed copay printed on the certificate and any overages that may occur.  The copays on the September PBFs that open on October 1 will be paid by CCAP.  The October PBFs that open on November 1 will not have the copay paid by CCAP.  It is advised that providers start collecting the assessed copay on 10/1/2024.  CCAP families will be notified via a message on kynect.ky.gov.  Families and providers will also receive an updated DCC-94 Notice of Change.

In response to a recent change in federal guidelines, copayments will not exceed 7% of a family’s monthly income.

Child care employees receiving CCAP with the child care employee exemption will not be affected as these cases do not have an assessed copay on the certificate. 

CCAP enrollment-based payment procedures are not ending or affected by the copay reverting to parents. 

Overages vs Copays

An overage and a copay are two very different things.  An overage occurs when the provider charges more than the State Max rate for the area.  For example, a provider charges $30 per day but the State Max Rate is $25 per day.  This means there is a $5 per day overage that the parent is responsible for in addition to the assessed copay found on the child care certificate.  The copay is assessed and assigned to the family during the eligibility process and printed on the CCAP certificate.  DCC doesn’t become involved with overages.  An overage would be unique to each program and is a business responsibility of the provider.  DCC is also not involved in the process of collecting the copay.  It is the provider’s financial responsibility as a business owner to maintain the overage and copay collection. 

Overage Calculation Example

If a provider charges $50 per day for an infant and the State Max Rate is $40 per day, there is an overage of $10 per day.  CCAP/CHFS pays $40 per day and the parent pays the overage of $10 per day to equal $50 per day.  ($40 + $10 =$50)

If the provider charges $50 for an infant and the family has a $5 copay, and the State Max Rate is $40 then CCAP/CHFS pays $35 per day and the parent pays the $5 per day copay and the $10 per day overage for a daily parent responsibility of $15 per day.  ($35 + $5 +$10 =$50).

Attached is a flyer you can use to inform your families of this upcoming change.

If you have further questions, please contact:  CCAPProviderPayments@ky.gov.