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ERIC Number: ED456919
Record Type: Non-Journal
Publication Date: 2001-Jul
Pages: 46
Abstractor: N/A
Reference Count: N/A
Conducting Market Rate Surveys and Establishing Rate Policies.
Karolak, Eric; Collins, Ray; Stoney, Louise
Market rate surveys and the rate-setting policies and reimbursement rules informed by them are at the core of the market-based approach to child care and are central to the delicate balancing act of ensuring access to subsidized care while at the same time promoting the quality of child care. This report provides an overview of the market-based approach and a discussion of planning and conducting market rate surveys and establishing rate policies for the administration of the subsidized child care system. The report's introduction describes the core components of the market-based approach and provides a rationale for its use. Part 1 of the report is presented in three chapters. Chapter 1 distinguishes child care cost from child care price and provides background information on the use of market rate surveys as a result of child care subsidies introduced under 1988 welfare reform legislation. Chapter 2 details the steps involved in planning a market rate survey. Chapter 3 discusses steps involved in conducting the survey. Part 2 of the report focuses on establishing rate policies and includes discussion of setting subsidy rates, adjusting subsidy rates to ensure access and improve quality, methods for determining special needs rates, tiered quality rating strategies, supplemental rate-setting methods, payment policies and procedures, eligibility determination, absence policies, special fees, communication and training, and alternative financing strategies. The report concludes by asserting that market rate surveys are a valuable tool to achieve the program goal of ensuring that eligible parents have equal access to a full range of high-quality child care options. (Contains 14 references.) (KB)
National Child Care Information Center, 243 Church Street, NW, 2nd Floor, Vienna, VA 22180. Tel: 800-616-2242 (Toll Free); Fax: 800-716-2242 (Toll Free); e-mail:; Web site:
Publication Type: Reports - Descriptive
Education Level: N/A
Audience: N/A
Language: English
Sponsor: Administration on Children, Youth, and Families (DHHS), Washington, DC. Child Care Bureau.
Authoring Institution: National Child Care Information Center, Vienna, VA.