STATE DEPARTMENT OF SOCIAL
REHABILITATION SERVICES
Integrated Services Delivery
Docking State Office Building
Room 681 - West
Topeka, Kansas 66612

PURPOSE, BACKGROUND, AND REASON FOR CHANGE

The purpose of this document is to transmit background information and policy changes   for child care benefit delivery through the EBT Vision card.   

1. MULTIPLE PROGRAMS
   
   1. CHANGES
      
      None
      
      
   2. CLARIFICATIONS

      Procedures for Canceling EBT Benefits - Section 1513.5 is being rewritten to reflect current procedures for canceling benefits issued in error. Separate rules exist for cash and food assistance benefits compared to child care benefits.

2.   CHILD CARE ASSISTANCE
   
   
   1. CHANGES
      
      
      1. Termination of Assistance - In Section 1424, the reference to a child care plan being terminated on any day of the month under certain circumstances is being removed. With EBT CC, child care benefits are monthly. Any plan changes are effective the first of the next month.
         
         
      2. Written Notice of Case Action - In Section 1430, the reference to providers being copied on client review due and review completed notices is being removed. Providers shall continue to be copied on termination notices when a plan is being terminated prior to the original end date.
         
         
      3. Timely and Adequate Notice - Section 1431 is being modified to emphasize policy and procedure of new plans/benefits beginning the first of the month. This supports the monthly benefit process for child care. The NOTE is being modified to reflect that information shared by using the narrative feature on the child care plan is not considered proper client notice.
         
         
      4. Payment Information and Payees and Representatives - Changes are being made throughout Section 1500 and its subsections. These changes include new information about child care benefits and also clarify certain situations as applicable to only cash assistance or food assistance.
         
         
         • Child care benefit issuance is through EBT and benefits can be accessed by a POS machine at the provider or the ARU toll-free telephone option.
           
           
         • Child care will have authorized representative and substitute payee options. The appropriate names need to be put on the FAPL screen on KsCares. The names are NOT sent to the EBT system by KsCares. The names will need to be entered directly onto the EBT system via the administrative terminal and cards issued. In general, designees should not be child care providers, employees of the child care provider or SRS employees.
           
           
         • Child care does not have a prohibition against less than $10 benefit issuance.
           
           
         • Even though the KsCares system will retain an option to make provider payments via checks, this option should not be used routinely Central Office approval is required. EBT is the new standard for delivery of child care benefits.|
           
           
         • Child care benefits are available on the first day of the month.
           
           
         • Immediate issuance is not available for child care benefits.
           
           
      5. Child Care Plan - Modifications are being made throughout Section 7600 to reflect the following:
         
         
         • Terminology is being changed to reflect “benefit issuance” rather than “provider payment.”
           
           
         • Special types of benefits continue to be available - enhanced rates for disabled children, enrollment fees, etc. The authorization process for these types of benefits is not changing except that the end result is a client benefit rather than a provider payment.
           
           
         • Emphasis is being made that child care plans end the last day of the month reflecting the monthly benefit concept. Also, if there is a mid-month provider change reported, plans are not adjusted until the first of the next month.
           
           
         • Determination of scheduled hours on the child care plan is remaining unchanged. Staff are reminded however, that these hours now determine the client benefit level. Staff shall make a fair and reasonable estimate of hours needed. Child Care Plan Hour Worksheets, Appendix Item C-21, are available to assist staff in documenting this calculation. In general, supplemental benefits to a paid benefit month will not be issued. The system will allow staff to issue supplemental benefits though the EXPC screen. Staff may consider this option if the original estimate was not fair and reasonable. Plans should then be adjusted for future months as needed as well. Weekly or monthly hours fluctuation would not require staff to issue supplemental benefits. If at any time, the client feels the hours estimate is not accurate, they may request recalculation. This may involve resubmitting information such as employment hours and income.
           
           
         • A NOTE is being revised in Section 7640 to reflect provider responsibility to the client if the provider goes out of business or is issued an Emergency Suspension. If a client has prepaid for services from a said provider and that provider is unable to provide those services, then the provider shall refund the appropriate amount to the client so the client can purchase care from another provider. See Appendix Item V-1 for special procedures related to this unique situation.
           
           
         • The “Changing Providers Mid-Month with a Family Share” policy has been removed. These complicated procedures are no longer applicable under EBT CC. Any provider change reported by the client is made on plans beginning the first day of the next month.
           
           
      6. Reporting Changes, Transfer of Assistance and Reviews - Modifications are being made throughout Section 9000 to reflect the following:
         
         
         • If the agency has made a reasonable and fair estimate or has established an average of the hours needed for child care, that estimate or average continues for the duration of the child care plan even if hours fluctuate on a weekly or monthly basis. If it is necessary to increase or decrease the scheduled hours, the change is made for the month following the month the need is identified.
           
           
         • It is no longer required to copy child care providers on review notices to clients. Providers are informed of the end date of the plan when it is sent at initial eligibility. The agency will inform providers if the plan ends or changes prior to that original date. Clients are responsible for completing reviews to insure they have benefits to pay for child care. Since benefits will be issued prospectively, providers will know immediately if the client has benefits. If not, providers and parents will need to make other payment arrangements.
           
           
      7. Incorrect Benefits and Fraud Determinations - The following modifications are being made throughout Section 11000:
         
         
         • References to child care providers and section 10000 are being removed.
           
           
         • Child care will not have a benefit reduction option. Any overpayments will need to be paid back directly, paid back using EBT benefits, or in some cases, state Debt Set-off.
           
           
         • The policy on returning aged-off child care benefits will mirror cash assistance. Benefits are only returned if there are extenuating circumstances.
           
           
   2. CLARIFICATIONS
      
      
      1. Child Care (CC) - Section 1114 is being modified to reflect the current federal goals of the program. References to child school readiness and quality child care are being incorporated.
         
3.     CHILD CARE PROVIDERS
   
   
   1. CHANGES
      
      
      1. Provider Responsibilities (Excluding In-Home) - The following changes are being made in Section 10034:
         
         
         • Providers are no longer restricted to only charging the SRS rate to SRS families. Rules around allowable charges to SRS families are therefore being removed.
           
           
         • Sub-items dealing with the returning of time sheets and information regarding problems with SRS payments are being removed, as these items are no longer applicable.
           
           
      2. Child Care Payments - Section 10200 is being modified to reflect the following changes:
         
         
         • SRS will no longer pay providers directly. SRS will issue benefits to families using the EBT system. Families will then use these benefits for fees charged by providers for services.
           
           
         • After SRS approval, providers must complete enrollment with eFunds and the EBT system in order to receive payments from SRS families.
           
           
         • References to time sheets and the FARMS system are being removed.
           
           
         • Rate modifications reported by providers shall be effective the month following the month of report as benefits will have already been issued for a current month. This is reflected in Section 10250.
           
           
         • As a result of these changes, Sections 10210, 10220 and 10230 are being marked “Reserved.”
           
           
      3. Incorrect Payments, Section 10400 and Provider Notification on Client Cases, Section 10600 - are being removed as they are now obsolete.
         
         
      4. Fair Hearings and Complaints - Section 10500 is also being deleted as redundant. Information regarding Fair Hearings and Complaints is already listed in Sections 1610 and 1620.
         
         
   2. CLARIFICATIONS
      
      
      1. Child Care Providers - Wording is being modified throughout all of Section 10000 to reflect benefit issuance to clients rather than direct SRS payment to providers.
         
         
      2. SRS Staff Responsibilities Related to Providers (Excluding In-Home) - Clarification is being added to Section 10035 to reflect that putting a provider on FARMS is only needed if the payment is to be made by check or direct deposit. Checks should not be issued without Central Office approval. This same policy applies to In-Home situations in Section 10036.3.

FORMS (Not previously discussed in this Summary)

1. The ES-1605, Child Care Subsidy Audio Response Unit (ARU) Worksheet is being created with this revision. It is designed as an optional form to be used by the consumer when accessing child care benefits through the ARU. It provides documentation for all the information needed to transfer benefits, including a confirmation number for the child care provider to track the payment. This form is to be printed on NCR paper so that the consumer and the provider may each have a copy. It will be available from the SRS warehouse for the Child Care Resource and Referral Agencies and for staff when who deal with provider enrollment.
   
   
2. The ES-1606, Request for Supervisory Approval - Child Care Hours Exceeding 215 Per Month - is also a new form with this revision. Its use is discussed in Sections 2834 and 7600. It is mandatory that this form be used whenever the child care plan exceeds 215 hours for any one child.
   
   
3. The ES-3141 , Vision Card Request For Alternate Payee is being revised to allow for the addition of the Child Care Program as a program that may have an alternate payee added to the Vision card.

MISCELLANEOUS FORMS (Not previously discussed in this Summary)

None

APPENDIX (Not previously discussed in this Summary)

1. Appendix Item C-10, Child Care Provider Handbook (ES-1655) is being revised to reflect EBT CC policy and procedure.
   
   
2. Appendix Item C-21, Child Care Plan Hour Worksheet is being added with this revision. See item 5 under “Child Care Plans” above.
   
   
3.   Appendix Item X-6 , Definition of Common Terms, is also being revised to reflect EBT CC policy, procedure and terminology.

EFFECTIVE DATE

All policies in this revision are effective September 1, 2005.  

MATERIALS OBSOLETED BY THIS REVISION

None

EFFECT ON LOCAL STAFF

Issuing child care benefits to clients through the EBT system will simplify child care benefits delivery for all involved - parents, providers and staff. Child care benefits will be administered in the same manner as Cash Assistance and Food Stamps. Common benefit delivery methods are easier to manage for staff and clients. Problems related to provider time sheets, retrospective payments, FARMS/STARS, etc. will all be eliminated. A provider business will need to have contacts with both parents.  Parents will be involved in the process of purchasing care for their children. Parents and providers will work together on payment issues. SRS will be responsible for benefit issuance. Though transition issues will be work intensive, once the transition is complete then the method of benefit delivery will be streamlined.

COORDINATION EFFORTS

Within SRS, the material in this letter and manual revision have been coordinated with staff in the Economic and Employment Support, Child Support Enforcement, Children and Family Services, Rehabilitation Services, the EES Program Administrators, the Implementation Planning Team, EES Program Training Unit, Child Care Provider Enrollment Staff, Information Technology Staff, Child Care Providers, Child Care Recipients, eFunds Corporation and other EES field staff.

Sincerely,

Bobbi Mariani, Director
Economic and Employment Support

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