California AB1981 establishes a new reimbursement methodology for subsidized childcare based on the actual cost of care.

California AB1981 aims to reform the reimbursement methodology for subsidized childcare by basing rates on the actual cost of care. The bill mandates the use of an alternative methodology, informed by a cost estimation model, to set future childcare rates. It seeks to address inequities in the current market-rate survey system, which underpays providers and limits access to quality care. The new methodology will consider factors such as geography, type of care setting, regulatory requirements, time categories, and child age.

California AB1981 establishes a new reimbursement methodology for subsidized childcare based on the actual cost of care.

California AB1981 aims to reform the reimbursement methodology for subsidized childcare by basing rates on the actual cost of care. The bill mandates the use of an alternative methodology, informed by a cost estimation model, to set future childcare rates. It seeks to address inequities in the current market-rate survey system, which underpays providers and limits access to quality care. The new methodology will consider factors such as geography, type of care setting, regulatory requirements, time categories, and child age.