RECAP of the December EEC Board Meeting: Consolidated Reimbursement Rates and Contract Procurement
At Neighborhood Villages, we prioritize keeping up with the policy landscape in the early education and care field, both across the country and in Massachusetts. That includes tuning-in to the monthly meetings of the Massachusetts Board of Early Education and Care (“EEC Board”), to stay apprised of updates and to identify opportunities for how we can work with government and other stakeholders to improve our early education and care system.
The primary topics of this month’s Department of Early Education and Care (EEC) Board meeting were: (1) proposed reforms to Child Care Financial Assistance reimbursement; (2) contract procurement updates; and (3) a review and preview of EEC’s work in 2023 and 2024. Here’s what you need to know…
If You Are a Provider:
The close-out budget for fiscal year 2024, which the Massachusetts Legislature passed last month, permanently excluded the child care market from a price law that impacted provider price-setting. Previously, EEC had to seek an annual waiver for exemption from Massachusetts’ Price Limitation Law, which states that the Commonwealth cannot pay more than the lowest fee charged to any private paying clients for the same type of care. Without the exemption, providers that participate in the Child Care Financial Assistance (CCFA) program would not be able to offer a discounted tuition to their teachers that is lower than the amount of reimbursement from EEC. The language in the close out budget made the exemption permanent.
EEC proposed consolidating reimbursement rates and geographic regions. Early education and care providers that participate in the CCFA program are reimbursed by EEC for care of children whose families have applied for and enroll with financial assistance. Providers receive reimbursement based on a daily rate, calculated based on regional location, age of child, and type of provider. After considering results and recommendations from a recent cost study, EEC constructed three possible new consolidations of current reimbursement rate regions and corresponding rates. In addition to a primary goal of simplifying the rate structure by consolidating rates across regions and providing across-the-board increases for a cost of living adjustment, EEC’s strategy to determine the new regions and rates included ensuring that the state made progress toward meeting/exceeding the 50th percentile of the market rate and integrating payment for quality into the base rates.
The three options proposed are illustrated in the image below, which comes from the EEC Board meeting materials:
In presenting the options, EEC recommended that the Board vote to adopt the option for 3 consolidated regions and rates (the middle column in blue, above). While there are trade-offs among the options, EEC determined that the 3-rate consolidation would be the best, including because it would raise 89% of what are the current rates to at or above the 50th percentile of the market rate survey and increase the portion of the cost of care covered by rates from the lowest being 56% to the lowest being 72%. (Note: EEC here defines the cost of care as the results produced in the recent cost study that considers current compensation levels. The 3-rate model would mean that, at a minimum, the new reimbursement rate would cover 72% of a given provider’s cost of care with its current conditions.)
EEC pointed out that the proposals are all relevant to center-based care, and that the family child care (FCC) rates are subject to negotiation with the union (to occur on December 18th); however, EEC plans to follow the same approach with FCCs as with centers.
With respect to immediate next steps, the EEC and the Board will review public comment and feedback, followed by a vote to adopt one of the proposals at the January Board meeting.
3. EEC plans to complete the re-procurement of contracted slots by the end of the current fiscal year. Contract procurement has to do with the contracts entered into between EEC and early education and care providers specifically for the placement of children in the CCFA program; it is the alternative to receipt of a voucher for the same purpose. Contracts are for dedicated spots that EEC purchased at a provider, typically by age group. Contracts provide stable financing to the early education system and providers and secure capacity in critical areas and/or for critical age groups. The contracts – while intended to be for 3-year periods – have not been re-procured since 2009-2010. EEC has been collecting community feedback as part of its review of CCFA; however, it has formally posted a request for information (RFI) as of 12/13/2023, the purpose of which is to gather additional input from providers and FCC systems. Public responses to the RFI are due on December 28th. A request for responses (RFR) will be issued in mid-February of 2024, with a probable deadline of late March. EEC would like to have new contracts in place by July 1, 2024.
If You Are an Educator:
Directors and Lead Teachers who wish to receive state certification can do so optionally, depending on their region. EEC paused state teacher certification during the COVID-19 pandemic, putting teacher certification into the hands of providers. While EEC works to modify its process for certifying teachers, it has reintroduced the option to obtain state certification in a limited way with plans to expand gradually. Directors across the state may seek certification from EEC, as well as teachers and lead teachers in Western Massachusetts. For both roles, however, seeking such certification is optional. For the meantime, programs and Directors maintain the ability to certify their teachers.
If You are a Child Care Advocate:
EEC continues to work with community partners – including Cradles to Crayons, Horizons, and Neighborhood VIllages – to support young children and their families in the state’s emergency shelter system. Through the partnership, more than 5,000 families with young children living in the shelters have received durable goods, such as hats, gloves, and coats, as well as essential learning and play gear.
The EEC’s priority topics for Board input and action in the next year will include:
Continued discussions on C3;
CCFA policy reforms and rate changes;
child care licensing recommendations;
Credentialing for educators;
Residential licensing regulation revisions;
Early Literacy; and
CPPI.
