Foster care maintenance payments for foster residence settings
Family First Prevention Services Act (FFPSA) revised the definition of family foster care in the Social Security Act, requiring all shift staff facilities to be considered child care institutions (congregate care) for foster care maintenance payments and practice. This new Title IV-E requirement impacts payment procedures and practices associated with foster residence settings.
The Minnesota Department of Human Services issued bulletin 21.68.10, Foster Residence Settings: Modification for Implementation of Family First Prevention Services Act on Mar. 22, 2021, clarifying this change. During the 2021 legislative session, a change was made regarding how foster care maintenance payments for foster residences would occur, meaning information in the bulletin was no longer applicable and it expired Sept. 30, 2021.
This document provides payment procedures and practices associated with foster residence settings (corporate foster care) consistent with Title IV-E Family First Prevention Services Act requirements, 2021 legislative amendments, and clarification of fiscal processes.
2021 legislation change to payment arrangements for foster residence settings
Effective for placements on or after Sept. 30, 2021, Minn. Stat., section 260C.4412, excludes foster residence settings from the requirement to establish a lead county contract to receive foster care maintenance payments. This amendment sets foster care maintenance payments for these settings, consistent with the basic payment established in Minn. Stat., section 256N.26, subd. 3, (Northstar Care for Children), subject to annual revision as specified in section 256N.26, subd. 9. [2021 Legislative Session, chapter 30, article 10, section 35]
Based on this amended language:
- A lead county contract is not required for foster residence settings to determine foster care maintenance payments for placements on or after Sept. 29, 2021, but continues to be required for children’s group residential settings (group homes, children’s residential treatment programs).
- The Minnesota Assessment of Parenting Children and Youth (MAPCY) is not used to determine payments for new placements in foster residence settings on or after Sept. 30, 2021. MAPCY continues to determine foster care maintenance payments for legacy placements, made on or before Sept. 29, 2021.
- Foster care maintenance payments for new placements on or after Sept. 30 is the basic rate set by Northstar Care for Children. The payments support the cost of children’s daily care, consistent with the definition in Minn. Stat. 256N.02, subd. 5: Basic rate is maintenance payments made on behalf of children to support the costs caregivers incur to provide for children's needs consistent with the care parents customarily provide, including food, clothing, shelter, daily supervision, school supplies, and children's personal incidentals. It also supports typical travel to children's home for visitation, and reasonable travel for them to remain in the school in which they are enrolled at the time of placement.
- Many foster residence settings are also licensed under Minn. Stat., chapter 245D, to provide waivered services for children placed in this setting. Previously, when the supplemental foster care maintenance payment was determined by the MAPCY for these placements, the supplemental rate was subtracted from the waiver payment (in the waiver payment processes). The amendment to payment rates for foster residence settings will not change a total payment for children’s care and waivered services in most settings. If supplemental rate is not received, providers receive the full waiver rate. [Community-based Services Manual funding for child foster care settings]
- The new amendment does not require a lead county contract, but a foster residence setting can request a lead contract; county agencies may enter into a contract, as permitted in state statute. This may be an appropriate choice if a foster residence is not a chapter 245D license holder providing services in addition to children’s daily care needs.
- Any payment to a foster residence setting for services above the Northstar Care for Children basic rate is not considered a foster care maintenance payment, and is the financial responsibility of a county and not eligible for Title IV-E reimbursement.
Title IV-E approval of foster residence settings
Prior to implementation of FFPSA, foster residence settings licensed under Minn. Rule, parts 2960.3000 -2960.3230, were considered Title IV-E eligible family foster homes. These settings were not required to apply for a separate Title IV-E approval from the department. Their Title IV-E eligibility was the same as family foster homes. Due to the change in the foster family home definition, Title IV-E eligibility approval for these settings no longer applied when FFPSA was implemented on Sept. 30, 2021. [Minn. Stat., section 256.82, subd. 2(b)]
To apply for Title IV-E eligibility approval, a licensed foster residence setting must be certified as one or more of the following FFPSA specified settings types:
- Qualified residential treatment program (QRTP), defined in Minn. Stat., section 007, 26d
- Prenatal, post-partum or parenting supports for foster youth (PPY)
- Residential care and supportive services for children and youth found to be or at-risk of becoming sex trafficked victims (STY), or
- Supervised independent living settings for youth ages 18 or older (SILS).
Foster residence staff must collaborate with a county agency to submit appropriate form/s below, based on specified setting type/s a foster residence setting is certified for to the department’s Financial Operations Division:
- Qualified residential treatment program, defined in Minn. Stat., section 260C.007, 26d, https://edocs.dhs.state.mn.us/lfserver/Public/DHS-8136-ENG
- Prenatal, post-partum or parenting supports for foster youth, https://edocs.dhs.state.mn.us/lfserver/Public/DHS-8138-ENG
- Residential care and supportive services for children and youth found to be or at-risk of becoming sex trafficked victims, https://edocs.dhs.state.mn.us/lfserver/Public/DHS-8139-ENG
- Supervised independent living settings for youth ages 18 – 21, https://edocs.dhs.state.mn.us/lfserver/Public/DHS-8137-ENG
BRASS codes for foster residence settings
Implementation of changes to foster residence settings resulted in changes to some child foster care BRASS codes. Link to Brass codes for foster residence settings
Impacts to the Title IV-E per diem report
The monthly and daily basic rates will appear on the Title IV-E Foster Care Per Diem Rate and Percentage Report when a foster residence setting is a Title IV-E approved facility, along with the application certifications.
Future releases in SSIS will include changes to:
- The Title IV-E Foster Care Per Diem Rate and Percentage Report
- The Title IV-E group provider search
- Title IV-E sub codes for service arrangements and payments.
For information regarding:
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