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Summary of Facts Used to Determine Payment Rates

States are required to provide a summary of the data and facts used to determine that payment rates are sufficient to allow subsidized families equal access to care. This summary should include the following:

  1. How the choice of the full range of providers is made available, including the extent to which child care providers participate in the CCDF subsidy system, and any barriers to participation
  2. How payment rates are adequate and have been based on the most recent market rate survey or OCC approved alternative methodology
  3. How base payment rates enable child care providers to meet health, safety, quality, and staffing requirements
  4. How the Lead Agency took the cost of higher-quality child care into account, including how payment rates for higher-quality care relate to the estimated cost of that care at each level of quality
  5. How copayments are affordable, a rationale for the Lead Agency’s policy on whether child care providers may charge additional amounts to families above the required family copayment, and data on the extent to which CCDF providers charge such amounts
  6. How payment practices support equal access to a range of providers
  7. How and on what factors the Lead Agency differentiates payment rates
  8. Any additional facts considered by the Lead Agency

In addition, other facts or considerations states might use in determining equal access include the following:

  • Payment rates set at the 75th percentile benchmark or higher of the most recent market rate survey results
  • Data on the size of the difference between payment rates and the 75th percentile
  • Data on the proportion of children being served over time and where children are being served (that is, whether they are being served by the full range of providers)
  • Data on the percentage of subsidy-eligible children being served by high-quality providers
  • Views and comments of the public obtained in accordance with regulation as presented at 45 C.F.R. 98.45(e)

States are encouraged to reference this resource: CCDF Payment Rates: Understanding the 75th Percentile.