April 2009

Wisconsin Association of Family & Children's Agencies Analysis of Provider Rate Regulation & Graduated Foster Care Licensing System Proposals

The Wisconsin Association of Family and Children's Agencies (WAFCA) analyzed two proposals in the governor's 2009-2011 budget related to the Department of Children and Families (DCF). WAFCA's position and the governor's proposals are as follows:

• WAFCA opposes a proposal to establish a per client rate for the cost of care for children in group homes, residential care centers, type 2 care and treatment foster care. DCF would conduct an actuarial study to analyze current rates and based upon the results of the study develop a rate setting methodology that would first take effect in January 2011. The proposal includes a provision that freezes provider rates at the January 2009 rates through December 2010, during the actuarial study period. WAFCA said this change was developed and proposed without input from providers, county purchasers, foster parents, or other stakeholders. In addition, the proposal has not been sufficiently analyzed at the state level to assess its potential to increase costs and decrease capacity across the continuum of care.
  

• WAFCA recommends modification of a proposal to establish a single licensing standard for foster care and treatment foster care with multiple levels of care that reflect increasing licensing requirements. Kinship Care providers would be licensed under the new standards and the increased federal revenue generated by licensing Kinship Care providers would be used to help fund out-of-home care in the Bureau of Milwaukee Child Welfare. WAFCA said it supports the modification of foster care licensing to enable Kinship homes to be licensed and the standardization of shift-staffed foster homes. WAFCA also supports the selection and implementation of a statewide assessment tool for children in out-of-home care, but recommends a modified phase-in period. WAFCA opposes establishment of standardized provider reimbursement rates based on the assessment tool.