Underpayments

Created on: 
Apr 07 2016

Table of Contents

Related WACs

DEL Clarifying Information (published February 1, 2017)

N/A

Additional Information

What is an underpayment?

An underpayment is payment made to a provider or client that is less than the amount the provider is eligible to receive.

What are the provider underpayment time frames and rules?

The time period the provider has to claim the underpayment depends on the provider type:

  • Child Care Center:
    • There is no time period limit on how far back we can consider an underpayment.
    • Center must have submitted their bill for payment within 12 months of providing service.
    • Reason for underpayment must be for payment that was made at a rate less than what they were eligible to receive.
    • Provider must have attendance records for months claimed more than 12 months in the past.
  • Licensed Family Home and Family, Friends and Neighbors provider:
    • Time period we can consider an underpayment:
      • Two years to request a corrected payment for incorrect rate paid.
      • Three years to request a corrected payment for any other reason, including an error discovered in a federal audit.
    • Provider must have submitted the invoice for payment within 12 months of providing service.
    • Reason for underpayment must be for incorrect rates paid by age or region.
    • Provider must have attendance records for underpayment months claimed.

What are the client underpayment time frames and rules?

A client may request reimbursement within three years of the date of child care service.