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IA HF344

IA HF344
A bill for an act relating to state child care assistance reimbursement rates.


summary

Introduced
02/12/2025
In Committee
02/12/2025
Crossed Over
Passed
Dead

Introduced Session

91st General Assembly

Bill Summary

This bill replaces the ability for child care providers to collect additional fees from families participating in the state child care assistance program (CCA) if the child care provider’s private-pay rate is more than the state’s CCA reimbursement rate with the requirement that the department of health and human services reimburse a child care provider at the rate the child care provider would typically charge a private-pay family for child care. Under current law, child care providers are reimbursed under the CCA at a rate equal to the lesser of the child care provider’s private-pay rate or a rate set by the state varying on the type of child care provider, the age of the child, and the child care provider’s rating under the quality rating system.

AI Summary

This bill modifies Iowa's state child care assistance program (CCA) reimbursement policy by requiring the department of health and human services to reimburse child care providers at their standard private-pay rate, rather than the current method which previously set reimbursement rates at the lesser of the provider's private-pay rate or a state-determined rate that varied based on factors like provider type, child age, and quality rating. Under the new provision, child care providers will be guaranteed reimbursement at the full rate they would typically charge families paying out of pocket, which eliminates the previous practice that allowed providers to collect additional fees from families participating in the CCA program when the state's reimbursement rate was lower than their standard rate. This change aims to provide more consistent and fair compensation for child care providers while potentially reducing financial strain on families participating in the state child care assistance program.

Committee Categories

Health and Social Services

Sponsors (7)

Last Action

Introduced, referred to Health and Human Services. H.J. 303. (on 02/12/2025)

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