MEMORANDUM

To: Early Care and Education Provider Community

From: Delaware Health and Social Services/ Division of Social Services

Date: June 18, 2024

RE: Purchase of Care Billing Guidance for June 2024

Purchase of Care Providers

We are forwarding this correspondence to alert you of some major changes to the Purchase of Care Program. Many of these changes were federally mandated while others were initiated to further support POC families and POC providers. The below referenced polices become effective July 1, 2024.

Approved Purchase of Care Policy Changes

• The state will reimburse providers for up to 10 absent days per month
• Family co-pays are now capped at 7% of income
• Families at or below 150% of the Federal Poverty Level will NOT have a co-pay
• All providers will be reimbursed at the state rate regardless of your private rate

Proposed Purchase of Care Changes

• New POC Income Eligibility to increase from 185% to 200% of the FPL

Fiscal Year 2025 (FY2025) Purchase of Care Reimbursement Rate:

• The 2024 Market Rate Survey results have been published and show a significant increase compared to the 2021 Market Rate Survey.
• The Joint Finance Committee has proposed establishing the POC reimbursement rate in epilogue.
• The next step in this process is for the budget to go before the full General Assembly for a vote. Any additional funds added to the budget and the new 2024 Market Rate Study reimbursement rate will be effective July 1, 2024.

The proposed Purchase of Care budget increases will be determined during the Joint Finance Committee Mark Up.  The proposed rates for 2024 are shared below:

The proposed rates are not considered final until the passage of the Fiscal Year 2025 state budget.  That may not be passed until June 30, 2024.

Once the Fiscal Year 2025 state budget passes:

• DHSS will inform providers of the final FY2025 Purchase of Care Subsidy Rates
• We expect FY2025 Purchase of Care Subsidy rate to go into effect July 1, 2024.
• First payment at the new rate is expected to be received by providers in the Purchase of Care payment deposited in August 2024.
• We expect providers will have 60 days until September 1, 2024, to implement internal policy changes to align with Purchase of Care policy and financial updates.
• The state intends to eliminate the clause in the POC contract that dictates the State will pay providers the lower of their facility rate or the POC rate. New contracts will eliminate that clause. Providers will be paid at the POC rate for POC services. Providers with rates lower than the POC rate will need to complete a contract amendment to eliminate the clause in their current contract. DHSS will be sending out amendments to POC providers whose rates are lower than the current POC rates.

Information will also be shared with providers on the upcoming provider calls:

Thursday, June 20, 2024

1:30 PM – 2:30 PM

Zoom*

*Zoom Call information will go out via email closer to the meeting date.

Subscribe to the Early Childhood email list:

https://tinyurl.com/EarlyChildhoodDE

June 2024 payments issued in July 2024:

This is a reminder that July 2024 payments for June 2024 services will be delayed due to State of Delaware “End of Fiscal Closeout”. This is a required fiscal process that occurs annually. Please direct any questions regarding this correspondence to Belvie Herbert @ 302-255-9670 or send email to the POC resource mailbox @ POCResource@delaware.gov

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