What MPCP Was and Who It Served

The Maryland Parental Child Care (MPCP) program in 2017-18 was a state subsidy that helped low-income working parents pay for child care. The state paid child care providers directly on behalf of may be able to access families, reducing what parents had out of pocket each month. MPCP was administered by the Maryland Department of Human Services and operated through local Department of Social Services offices in each county.

Unlike some child care information programs that work only with licensed centers, MPCP covered care in multiple settings: licensed child care centers, licensed family child care homes, and license-exempt providers (including relatives). The program served children from birth through age 12, though the amount of subsidy and the rules around it varied depending on the child's age and the family's income.

In 2017-18, MPCP was one of the largest child care subsidy programs in Maryland by volume. Families did not pay MPCP directly — instead, the state sent payment to the provider, and the family paid any difference between the state rate and what the provider charged.

Key Takeaways

  • MPCP paid child care providers directly on behalf of families, with the state covering a portion of the monthly cost based on family income and the provider's rates.
  • The program served children from birth through age 12 in licensed centers, licensed family homes, and license-exempt care including relatives.
  • Families paid a co-payment based on their income level, and the state covered the remainder up to its maximum allowable rate for that provider type.
  • Payment was sent to the provider monthly, usually between the 15th and 20th of each month, though processing delays sometimes occurred.
  • Providers had to be registered or licensed with the state and have a signed agreement with the Department of Social Services to receive MPCP payments.

How the Payment Amount Was Calculated

MPCP payment in 2017-18 was based on three things: the family's income, the child's age, and the provider's actual charge. The state set a maximum reimbursement rate for each type of care (center-based, family child care, or license-exempt) and for each age group. If a provider charged less than the state maximum, the state paid that lower amount minus the family's co-payment. If a provider charged more, the family paid the difference out of pocket.

The family's co-payment was a percentage of their gross monthly income, scaled by how many children were in care. A family at 200% of the federal poverty level paid roughly 7% of income; a family at 300% of poverty paid roughly 10%. Families below the poverty line typically paid nothing or a nominal amount. These percentages were set by the state and did not change during the fiscal year, though they could change year to year.

The state's maximum rates varied significantly by county and by provider type. A licensed center in Baltimore County might have a higher maximum rate than the same type of care in a rural county. Providers were required to post their rates publicly, and families could see what the state would pay before choosing a provider.

When and How Providers Received Payment

Providers who had a signed MPCP Provider Agreement with the local Department of Social Services received payment monthly. The state typically processed and sent payments between the 15th and 20th of each month, though the exact date varied by county and by how quickly the provider submitted attendance records.

Payment was sent by check or, in some cases, by electronic transfer if the provider had set that up with the state. Providers had to submit monthly attendance sheets or sign-in records showing which days each child was in care. If a provider did not submit attendance by the important date (usually the first few days of the following month), payment was delayed until the records arrived.

The state paid only for days the child actually attended care. If a child was absent, that day was not paid unless the family had used a planned absence — a small number of days per month (usually two to four) that the state would pay for even if the child did not attend, to help families hold their spot during occasional absences.

What Providers Had to Do to Receive MPCP Payments

To receive MPCP payments in 2017-18, a provider had to meet specific state requirements. Licensed child care centers and licensed family child care homes had to maintain their license with the Maryland Department of Health. License-exempt providers (including relatives) had to be registered with the state, which meant completing a background check and health screening but did not require a formal license.

All providers had to sign a Provider Agreement with the local Department of Social Services. This agreement set out the provider's rates, the state's maximum reimbursement, the family's co-payment, and the provider's obligation to submit attendance records on time. Providers also had to agree to accept the state's payment as payment in full for the state-covered portion — they could not bill families for the difference between their charge and the state rate.

Providers had to maintain records of attendance, keep the care environment safe and clean, and comply with any inspections or monitoring visits from the state. If a provider lost their license or registration, or if they violated the terms of the Provider Agreement, the state could terminate their participation in MPCP and stop sending payments.

How Families Paid Their Share

Families paid their co-payment directly to the provider, not to the state. The provider subtracted the family's co-payment from their bill and received the remainder from MPCP. For example, if a provider charged $800 per month, the state's maximum rate was $750, and the family's co-payment was $100, the family paid $100 to the provider and the state sent $700 to the provider.

If a family's income changed during the year, their co-payment could change. Families were required to report income changes to their local Department of Social Services within 10 days. If income went down, the co-payment went down. If income went up, the co-payment went up, sometimes retroactively. Families who did not report changes could face overpayment claims or loss of the subsidy.

Families could also face a co-payment increase if they switched to a more expensive provider. The state paid up to its maximum rate; anything above that was the family's responsibility. Some families chose less expensive providers specifically to keep their out-of-pocket cost down.

What Happened If a Provider Left the Program

If a provider stopped accepting MPCP or lost their registration, families had to find new care or lose the subsidy. The state did not automatically transfer a family's subsidy to a new provider. Instead, the family had to work with their local Department of Social Services to update their case and authorize payment to the new provider.

This process usually took a few days to a week, during which the family might have to pay out of pocket for care. Families were advised to notify their caseworker as soon as they knew they were changing providers, so the paperwork could be processed quickly. If a provider closed suddenly, families could request emergency information or expedited processing, though the state's ability to help depended on local resources.

Providers who left the program were required to notify families and the state in writing. Licensed providers had to give notice to the Department of Health as well. The state kept a list of active MPCP providers, and families could check it to see which providers in their area were currently accepting the subsidy.

Common Issues With MPCP Payments in 2017-18

Payment delays were the most common problem. If a provider submitted attendance records late, or if the local Department of Social Services had a backlog, payment could be delayed by a week or more. Providers sometimes had to call the local office to check on the status of a payment. Families occasionally had to pay out of pocket temporarily and ask for reimbursement later, though this was not the intended process.

Co-payment disputes also occurred. Some families disagreed with the amount they were told to pay, usually because they believed their income had changed or because they did not understand how the co-payment was calculated. Families could request a recalculation and provide updated income documentation. The local Department of Social Services was required to review the request within a set timeframe.

Provider rate disputes happened when a provider charged more than the state's maximum rate and tried to bill the family for the difference. The state's Provider Agreement prohibited this, but some providers did it anyway. Families who encountered this could report it to their caseworker, and the state could investigate or terminate the provider's agreement.

Frequently Asked Questions

Did MPCP cover all types of child care?

MPCP covered licensed centers, licensed family child care homes, and license-exempt providers including relatives. It did not cover school-age programs or camps unless they were part of a licensed child care facility. Some counties had additional restrictions on which types of providers they would pay.

What happened if a family's income went up during the year?

The family's co-payment would increase, sometimes retroactively. Families were required to report income changes within 10 days. If they did not report a change and the state discovered it later, the family could owe back co-payments or lose the subsidy.

Could a provider refuse to accept MPCP?

Yes. Providers were not required to participate in MPCP. Some chose not to because the state's maximum rates were lower than their private rates, or because they did not want to deal with attendance reporting. Families whose preferred provider did not accept MPCP had to either pay out of pocket or find a different provider.

How long did it take to get approved for MPCP?

Processing time varied by county, but typically took two to four weeks from the time a family submitted a complete process. Families could start using a provider and pay out of pocket while waiting for approval, then request reimbursement once the subsidy was active. Some counties had faster processing than others.

What if a provider went out of business suddenly?

Families had to find new care and notify their local Department of Social Services to transfer the subsidy to the new provider. The state could sometimes expedite this process, but there was usually a gap of a few days where families had to pay out of pocket. Families were advised to keep emergency savings or backup care arrangements for this reason.