Subsidy Reimbursement Rates

To update child care assistance reimbursement rates and to make sure child care is accessible for families, states must assess subsidy reimbursement rates and child care costs every three years. Because of market changes during the pandemic, Indiana decided to delay rate changes. Instead, in April 2021, it issued a temporary 20% increase for all assistance payments to offset increasing child care costs.

At the same time, Indiana used data from over 3,100 providers and 8,984 classrooms across early childhood and school-age programs to create a new model that shows the true cost of child care in the state and also ensures that providers are reimbursed accordingly. This is done by focusing on cost drivers, which allows providers across auspices, quality levels, geography and the age groups they serve to be compared on an “apples-to-apples” basis.

Additionally, the new model accommodates the realities of child care services, including shifting daily schedules, flexible staffing models and classrooms that open, close, or are converted to other age groups (e.g., before-/after- school care) depending on the time of day.

The Subsidy Reimbursement Rate Survey is the final critical piece in understanding the complete picture of child care in the Hoosier state by providing information on how much providers are charging families for the service of child care. The new 2023 survey takes approximately 20-30 minutes to complete, with much of the information pre- populated based on your licensing information. This user guide has been created to answer frequently asked questions about the survey, and help you, the provider, to answer this survey honestly and accurately. 

Thank you for taking the time to complete this and for providing service to your community.

If you need additional support, please reach out to businesssupport@indianaspark.com.