939 DETERMINING THE ALLOWABLE RATE SR 05-03, 07/05 (FAM-A)

Determine the payment rate based on gross monthly income, family size, age of the children, number of children, type of provider, number of hours of service, and whether or not the recipient of child care assistance has applied for or receives TANF financial assistance or NHEP-related categorically-needy medical assistance (MA).

• TANF financial assistance recipients, recipients of NHEP-related categorically-needy MA and 12 month EMA recipients whose eligibility for EMA is based on loss of TANF financial assistance or loss of NHEP-related categorically-needy MA due to new or increased earnings or hours of employment of the principal wage earner, receive Step 1 rates regardless of their income.

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• NHEP participants in an approved OJT placement receive Step 1 rates for the duration of the OJT contract even if financial assistance closes due to increased earnings or hours of employment.

• Non-TANF families and families not eligible for 12 month EMA with gross monthly income which does not exceed 140% of the federal poverty guidelines are eligible for Step 2 payment rates.

• Non-TANF families and families not eligible for 12 month EMA with gross monthly income between 140% and 190% of the federal poverty guidelines are eligible for Step 3 payment rates. Step 3 has 2 sets of payment rates:

- The first is for families with 1 or 2 children in child care; and

- The second is for families with 3 or more children in child care.