938 COST SHARE AND PROVIDER CO-PAY SR 14-16, 04-14 (FAM-A) |
The cost share is the amount the Department has determined that families owe their child care provider as their contribution towards the cost of child care. The Department will subtract the cost share from either the provider's rate to private pay families or the NH Weekly Standard Rate, whichever is less. Providers may choose whether to charge the family this amount. The family’s cost share is based on a percentage of the family’s gross income, and the percentage used is based on the income Step level by which the family became eligible for NH Child Care Scholarship. This means the cost share will be different for each family. The payment rate based on the cost share becomes effective the Monday following the change. The chart below lists the percentages by Step level used in the cost share determination process:
Family Eligibility and Family Cost Share (Based on Income) |
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Step level |
Eligibility Limits (FPG) |
Percent of Family Income Assigned to Cost Share |
1 |
< 100% FPG |
4.75% |
2 |
>100% FPG but < 120% FPG |
7.5% |
3 |
>120% FPG but < 140% FPG |
10.0% |
4 |
>140% FPG but < 160% FPG |
12.5% |
5 |
>160% FPG but < 190% FPG |
14.0% |
6 |
>190% FPG but < 220% FPG |
17.0% |
7 |
>220% FPG but < 250% FPG |
20.0% |
Families with more than one child eligible for NH Child Care Scholarship will have the family cost share amount divided equally among all the eligible children linked to enrolled providers. This family cost share, once it is divided by the number of children in the family, is then referred to as the child’s cost share.
A co-pay is the difference between the provider's charge and the NH Weekly Standard Rate. It only occurs when the provider's charge is greater than the NH Weekly Standard Rate. There is no co-payment when the provider's charge is less than the NH Weekly Standard Rate. The provider may choose whether to charge families for this difference. Families are responsible for paying this difference, if charged, to the provider in addition to their cost share.
References: He-C 6910.17(e), He-C 6910.18(a) and (c)-(g), RSA 161:2,XII, RSA 167:83,II, 45 CFR 98.42