News

June 21, 2023

OCDEL Releases 2022 Market Rate Survey Report

The Pennsylvania Office of Child Development and Early Learning (OCDEL) recently released their 2022 Child Care Market Rate Survey (MRS) Report.

Data in the report reflects a challenging operating and economic environment, which child care providers continually navigate.

About the MRS Report

The MRS report is a collection and analysis of prices charged by child care providers in an open market. It includes information on private pay tuition rates, staffing, payments and fee practices, facility types, and food offerings at local programs.

OCDEL uses the report to set base reimbursement rates for Pennsylvania’s subsidized child care program Child Care Works (CCW) to ensure equal access to child care for low-income families.

2022 MRS Report

Across the state, 6,378 child care providers stayed in operation throughout the entire survey period. A total of 4,383 providers participated in the 2022 MRS, representing a 68.7% response rate.

Key Findings from the 2022 MRS Report

CCW

  • Of providers with a CCW agreement, half (50.1%) indicated that they do not usually require CCW families to pay any difference between the private tuition rate and the subsidy payment amount.
  • Family and Group Child Care Homes are more likely to require CCW families to pay the difference between the private pay rate and subsidy reimbursement amount than centers. This raises concerns about equity and access to affordable child care in these settings.
  • Among providers who did not have a CCW agreement, the most common reason for not participating was that their capacity was at full enrollment with only private pay families.

Payments & Fees

  • Providers with higher Keystone STAR designations charge more than similar providers with lower designations across all care levels and types.
  • Almost two-thirds (64.4%) of providers charge families a registration fee, with the median fee being $50. Registration fees were most often charged by centers. Incidental fees for late pickups and overdue payments were charged by most providers.
  • With so many providers requiring a registration fee, low-income families in the CCW program may face financial barriers to accessing child care. Additionally, fees for late pickups and overdue payments may cause financial strain for families who are struggling financially.

Staffing

  • Over half of all providers reported unfilled job openings (54.1%), which reduced the number of children that could be served. This was most common among Child Care Centers (67.9%).
  • Only a portion of providers (36.6%) offered health insurance to any staff members. The low portion of providers offering health insurance benefits to staff members may impact the quality of care.

Food & Nutrition

  • The USDA Child and Adult Care Food Program (CACFP) is a federal program that provides reimbursements to providers for healthy meals and snacks — 43.3% of providers reported using the program.
  • Regardless of CACFP participation, most providers offered some meals or snacks with regular tuition.
  • The fact that over half of providers do not participate in CACFP suggests that there may be gaps in the quality of meals and snacks offered by child care providers. This could be particularly bad for children from low-income families who may rely on child care providers for healthy meals.

Access the Report

Access the 2022 MRS Report on the Pennsylvania Department of Human Services (DHS) website.

Learn More

To learn more, visit the Official Pennsylvania Government website.

News

November 8, 2019

Pennsylvania Announces 2019 Market Rate Survey

The Office of Child Development and Early Learning (OCDEL) invites all Pennsylvania certified child care providers to participate in the 2019 Market Rate Survey.

About

Every three years, states conduct a Market Rate Survey (MRS) to update information regarding the prices child care providers charge families. With the last official MRS conducted in 2016, OCDEL invites all certified child care providers in Pennsylvania to submit their published private pay rates. By providing this information, child care providers help OCDEL paint a more accurate picture of child care prices in Pennsylvania and will provide an important database to compare private pay prices with the Child Care Works reimbursement base rates.

How to Participate

The survey is available online from October 7 through December 30, 2019 within the PELICAN Provider Self-Service Portal. Participation will require a username and password to enter. For assistance on enrolling in Provider Self-Service or updating your child care prices if you do not have access to Provider Self-Service, contact your local Early Learning Resource Center (ELRC).

Information from all child care providers is important, even if your private pay prices have not changed. If your prices remained the same, please update the “effective date” within the Provider Self-Service Portal. Any changes made between October 7 and December 30, 2019 will be included.

Click here for instructions on how to complete the Survey using Provider Self-Service.

Frequently Asked Questions

What is the Market Rate Survey?

In order to comply with federal requirements and continue to draw down federal dollars from the Child Care Development Block Grant for the operation of the Child Care Works (CCW) child care subsidy program, OCDEL is required to complete a periodic Market Rate Survey (MRS). The MRS collects information from all regulated child care providers about their published private pay rates. Providers should participate in the MRS and confirm or report updates to their private pay rates using Provider Self Service (PSS) or, if not enrolled in PSS, by contacting their Early Learning Resource Center (ELRC).

What does the term “market rate” mean?

The “market rate” is interpreted as the rate which families are asked to pay, and which is published in program literature. The market rate does not reflect any discounts.

Will I be audited for updating my published rates?

Probably not. OCDEL has required verification in the past, and ELRCs have on occasion called a sampling of providers to check, but this is not the plan for this year’s MRS. However, providers should still only share published rates that they can verify if needed, and is the rate charged to most families.

What qualifies as a “discount?”

“Discounts” reflect allowances for families to pay a lower rate. For example, Comcast advertises its rate to clients, but frequently offers specials and discounts for loyal customers and new clients. Child care providers who typically charge $100 but who can offer discounts and specials to lower the price to $80 should still report their rate as $100. The MRS is not designed to capture any discounts that individual providers may choose to offer; it captures ONLY a provider’s published private pay rate.

What do they mean by “published?”

“Publishing” includes your website, your family handbook, any written contracts, or the rate visible on COMPASS.

What is the Child Care Works (CCW) reimbursement rate?

The Child Care Works (CCW) reimbursement rate is the rate that providers are reimbursed by the state for providing care to children who are eligible for CCW. This rate is based on the current market rate as provided through the MRS and is determined in part during the appropriations process. Because many providers also serve children who are not eligible for CCW reimbursement, providers must maintain a separate market rate for private pay families, and report this rate when completing their MRS rather than the CCW reimbursement rate.

Why participate in the Market Rate Survey?

It is important that each provider updates their private pay rates so that OCDEL has the necessary data to consider future Child Care Works base rate increases.

Learn More

To learn more, view the full announcement or contact your local ELRC.

*Information provided by OCDEL