Guidance on Tiered Reimbursement

Wisconsin Shares staff members have been working hard to explain all of the changes that went into effect on July 1, due to the tiered reimbursement W2 child care reimbursement system. Here are some great pieces of information that they want YOU to know about tiered reimbursement:

YoungStar does NOT alter a family’s co-payment. However, in some cases, families may have to pay more to the provider. If the provider’s private rate is higher than the Wisconsin Shares payment plus the parent’s co-payment, the provider may require that the parent pay the difference up to the provider’s private rate, or the provider may choose not to charge the extra amount to the parent.

For 2 Star providers, the Wisconsin Shares payment decreases by 5%. This still does not change the Wisconsin Shares Co-payment amount. It may, however, make child care more expensive if the provider chooses to pass on the 5% reduction to the parent.

YoungStar bonuses or reductions are NOT reflected in authorization notices. The change in payment will be calculated as part of the issuance amount and it will ONLY show up on the check stub of EFT remittance.

Accredited providers, who are rated as 5 star programs, will be paid the same amount as before tiered reimbursement. The Quality Rating incentive payment replaces the 10% accreditation payment increase. But the rate shown on the Authorization Notice will appear to be less than shown previously. Providers should review their EFT Remittance or check stub to see the Quality Rating incentive amount.

4 thoughts on “Guidance on Tiered Reimbursement

  1. I’m sorry, but I had difficulty understanding this article because it’s written in the jargon of an accountant. I managed to piece it together but would have to refer back if dealing with any of these payment issues. I can only imagine the confusion for a non-English speaker trying to figure out what they should be paying for tuition. Is there any way to put put some examples on here or use more conversational language?

  2. Thanks again Governor Walker for requiring a degree for a provider to get the same amount that they used to get for just being able to be licensed

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