Working Parents’ Transitional TANF benefits for Child Care services
In the first session of the 123rd Maine Legislature, administration of working parents’ transitional TANF benefits for child care was transferred to the Department of Health & Human Services.
The process before to the transfer was:
DHHS determined the first month’s transitional TANF benefit for child care services for former TANF working parents.
The parents’ information was then transferred to a private, non-profit agency for on-going benefit determination.
This agency was responsible for the distribution of the benefit.
DHHS determined all other benefits each month.
DHHS distributed all other benefits (Food Stamps, Medicaid, Child Support and more)
Working parents were required to report the same information to two separate entities, since 93 percent qualified for both transitional childcare and other benefits.
The transfer of the on-going determination for transitional TANF benefits for child care services for working parents:
Eliminates duplicate data collection;
Centralizes confidential information in a secure system;
Simplifies reporting;
Makes continuity of child care easier for prior TANF working parents;
Delivers all TANF benefits using the same method (Electronic Benefit Transfer);
Provides for a single fiscal system for all TANF expenditures;
Institutes state and federal verification and compliance policies for all benefit determinations by DHHS;
Saves $1 million annually in General Fund.
Verification and Compliance Policies and Procedures
The state and federal verification and compliance polices and procedures which apply to benefits are:
A signed affidavit from the parent that states: “I certify under penalty of perjury that my answers….are correct and complete for all persons applying for benefits.”
Verification of the parent’s or applicant’s income, employer, assets, household/family composition, child care provider, residency, citizenship, disability, unearned income, paternity and more;
Compliance with the service contract by verifying hours of activity;
Parents and recipients of benefits must report a change in household circumstances within 10 days of a change;
Data matches with multiple agencies, both state and federal, are completed monthly by DHHS to assure compliance; and
Inconsistencies are examined to determine whether benefits will continue.
If information cannot be verified, the parent/recipient risks the loss of benefits.
If the information is inaccurate, the parent/recipient must repay the benefit.
Repayment must be returned to the appropriate federal funder.
Depending on severity, the parent/recipient may be found in program violation, disqualified from the program for a specified period of time, referred to the Department’s Fraud Investigative Unit and potentially referred to the state Attorney General for prosecution.
How DHHS Handles An Allegation from the Public:
We compare DHHS’ known information to the allegation;
If reported allegation is inconsistent with DHHS information, the parent/recipient is contacted.
The recipient is required to prove their actual circumstances;
If this step proves to be inconclusive, a referral to the Department’s Investigation and Recovery Unit is made for a focused investigation.
This investigation is completed in an average of 10 working days.
The results of the investigation follow the same penalties explained above.
Specific to TANF benefits for Child Care Services
DHHS had hosted local meetings with child care providers and parents both before and after the change in benefit administration.
The transitional TANF benefit is the parent’s benefit and parent’s benefit is confidential;
Parents can have the child care payment go directly to the provider.
(41 percent of the transitional TANF child care benefit is handled this way).
If the parent chooses to redirect their TANF benefit the provider can receive payment by check or direct deposit.
The transitional TANF benefit for child care services is provided to the parent before service is rendered, unlike the former system where payment came after services.
The transitional TANF benefit for child care services is placed on the Electronic Benefit Transfer card.
Providers can install a card swiping machine to allow an electronic transfer of the payment.
DHHS continues to encourage reporting of any potential non-compliance.
When reporting, it is helpful for us if you provide specific information and details, including the parent’s name and location.
