Previously, the Division of Child Care had stated they would stop paying the parent copayments effective December 31, 2023. We’re happy to announce that the decision has been made to continue covering the assessed copayment.  A 30 day notice will be given prior to the end of this initiative.  Families are still responsible for any overages assessed by the provider.

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)