OCDEL Announces CCW Base Payment Rate Increase for DHS Certified Providers

The Pennsylvania Office of Child Development and Early Learning’s (OCDEL) Bureau of Policy and Professional Development has released an announcement on an increase to Child Care Works (CCW) base payment rates for Department of Human Services (DHS) certified providers.

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Effective January 1, the subsidy base rates - also known as the Maximum Child Care Allowance (MCCA) - will be increased to the 75th percentile for all DHS certified child care providers.

Background

The CCDBG Act requires lead agencies to certify that rates are sufficient to ensure eligible children have equal access to child care services. The benchmark for equal access established by the Administration for Children and Families Office of Child Care (ACF OCC) is the 75th percentile of the current child care market. OCC considers payment rates set at the 75th percentile or higher as providing equal access.

Increasing the CCW base rate incentivizes additional provider participation in CCW. It also helps child care providers who participate in the program enhance services, invest in staff development, compensation, and promote overall quality in child care programs. 

Next Steps

The next steps for DHS certified child care providers on updating pay rates include:

  • Updating and communicating private rate pay changes on family agreements or contracts, website, and handbooks as applicable

  • Completing Appendix C-1 ELRC Subsidized Child Care Provider Reported Rates

  • Sending the completed Appendix C-1 along with verification of the DHS certified child care provider’s published rates to your ELRC by January 31 to receive the update rate

  • Directing any questions to your ELRC

The next step for ELRCs include:

  • Reviewing and sharing this information with appropriate staff

  • For any DHS certified child care providers returning completed Appendix C-1 and their published rates, entering updated rates into PELICAN CCW and converting rates for all DHS certified child care providers with an effective date of January 1 if verification is received by January 31.

  • Generating and sending all DHS certified child care providers Appendix C-2 ELRC Subsidized Child Care Provider Payment Rates

  • Directing any questions to your program representative

More information on the increased rates can be found on The Pennsylvania Key website. Information on Pennsylvania's Maximum Child Care Allowance daily rates are also available on that website.

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