Provider Billing Guidance 

• A Child Development And Care (CDC) Provider Verification (michigan.gov) (DHS-4025) must be completed and submitted by the parent to MDHHS to assign a child to a provider.
  • A provider will receive a DHS-198 when the child has been assigned.
    • Start date of provider assignment. End date of the child’s authorization.
    • Number of hours authorized - If multiple providers are assigned to this child those hours are shared.
    • Family Contribution -The bi-weekly amount that is deducted from the providers payment per children, per pay period.
  • This information will not be shared with the provider by MDHHS or CDC until the parent submits the DHS-4025 to MDHHS and the child has been assigned to the provider.
  • Calls regarding authorization by parents and providers should be directed to MDHHS 1-844-464-3447.
• License providers that bill based on enrollment must have an Enrollment Agreement (michigan.gov) on file for every child. These records should be kept for 4 years and should be updated if a change is expected to last more than two weeks.
• Provider cannot bill prior to the child’s first day of care or after the child’s last day of care.
• Adding children from a household requires anew Child Development And Care (CDC) Provider Verification (michigan.gov) (DHS-4025)

• Overnight care must be entered in the appropriate days. For example, if a child is enrolled in overnight care from 6:30 PM to 8:00 AM, enter 6:30 PM to 11:59 PM in the first day, then enter 12:00 AM to 8:00 AM in the following day.

• A provider must not bill for the hours a child is in school or enrolled in another program.
  • Hours are determined by the school district.
• Licensed providers must complete a new Enrollment Agreement with parent at the beginning and end of school year.
• Provider may not bill for times when a child is homeschooled.
• Before School:Billing time ends at drop off, if the provider takes the child to school or when the child gets on the bus.
• After School: If provider is transporting the child from school, billing may start up to 15 minutes prior to dismissal.

Absence hours are billed when a child is expected to return to care.

Absent Hour Billing Guide:

• Payment for absences is limited to 360 total hours annually each fiscal year (October 1 – September 30), with no more than 10 days being paid in a row.
• A provider must stop billing immediately after a child’s last date of care. It is the parent’s responsibility to pay any additional fees that are a part of an agreement or a contract.
• Billing for consecutive absences:
  • Days 1-10:Bill for enrolled days/times. Entered in I-Billing as regular care hours. These hours will be paid.
  • Days 11-12: Bill for enrolled days/times in I-Billing and select the absent box. These hours will be paid.
  • Days 21 and beyond: Bill absence hours selecting the absent box. These hours are not paid due to reaching 10 days maximum of consecutive absences.

• A letter with the Provider ID number will be mailed when the provider when they complete the enrollment process.
  • Determination letters should be read carefully as all approved/denied applicants will receive a Provider ID.
  • Only Approved providers are eligible to bill.
• A PIN is mailed to first time providers when a child is assigned to the provider.
  • Assignments are done when a parent submits a completed (DHS-4025) Child Development And Care (CDC) Provider Verification (michigan.gov) to MDHHS.
• More information for new providers can be found Child Development and Care (CDC) Handbook (michigan.gov)
• Additional billing help can be found Provider Billing Help (michigan.gov)

• Work with licensing consultant to make the transition and obtain a new license number.
• Parent must submit a new Child Development And Care (CDC) Provider Verification (michigan.gov) (DHS-4025) to assign the new provider.
  • Providers will not be able or eligible to bill until the child has been assigned under the new license number.

• Time and attendance records are required for all provider and must be kept for 4 years.
• License Exempt providers are required to use and keep on file for 4 years a CDC Daily Time and Attendance Form (michigan.gov) .
• License providers keep all Enrollment Agreements for 4 years. Enrollment Agreement (michigan.gov)
  • A provider may use their own enrollment agreement if it includes:
    • Name of child
    • Effective date of schedule
    • Total agreed enrollment hours
    • Schedule
    • Explanation if schedule varies
    • Signature of parent

The CDC office conducts reviews to determine compliance with program requirements.  Failing to respond to the request for information will result in a program violation that could result in a Corrective Action Plan (CAP) or disqualification. 

• If a provider is selected for a time and attendance review the CDC will send a letter to the provider requesting time and attendance records and/or Enrollment Agreements for a specific pay period:
• Providers are reviewed to ensure they follow CDC program rules.
  • These records are used to check that they are complete.
  • License exempt provider: The attendance record and the billing match and is accurate.
  • The number of children in care match the number of children allowed by provider type.
  • Verify that care being provided is in the correct location.
  • Care is being provided during times that are allowed.
  • Additional items may be reviewed.
• Providers sending information to CDC should black out the child or family Personal Identifying Information (PII ) - Example: Child’s date of birth, Social Security Number, Address.
• More information on reviews can be found in the Child Development and Care (CDC) Handbook (michigan.gov)

• If the CDC scholarship payment does not cover the full tuition, the parent is responsible for that amount.
• The parent is responsible to pay for the cost of care provided before the family is approved for CDC or before the child care provider becomes eligible and authorized to receive CDC payments.
• Excess Scholarship Payment: If the scholarship payment exceeds what is charged for care, those amounts remain with the provider and can be used to remove any balance owed by the family. Remaining amounts can be used to invest in the operation of the child care program. See the CDC Handbook for suggestions to use excess payments.
• The Department limits the total number of hours and the number of children in care for a pay period for all providers except Child Care Centers:

• License exempt-related and unrelated providers will not be paid for more than 2,016 total hours per pay period for all children in care.
  • License exempt providers are limited to a maximum of 6 children in care and no more than two children under the age of 12 months at the same time.
• Family Child Care Homes will not be paid for more than 2,016 total hours per pay period for all children in care.
  • Family Child Care Homes follow licensing rules BCAL PUB 724 (1_16).indd (michigan.gov) and the provider approved license capacity.
• Group Child Care Homes will not be paid for more than 4,032 total hours per pay period for all children in care.
  • Group Child Care Homes follow licensing rules BCAL PUB 724 (1_16).indd (michigan.gov) and the provider approved license capacity.

• Fees and Family Contribution should not be charged to parents if the amount of scholarship exceeds the amount the provider charges other families.
• Child care centers, group homes, and family homes may bill the CDC program for child care fees.
  • This is intended to help cover fees that are sometimes charged to families, such as registration fees, annual fees, or field trip fees.
  • This is not intended to cover late payment fees, late pick-up fees, bounced check fees, etc.
  • Payment for child care fees is limited to $65.00 for centers, and $40 for group and family homes, per child per fiscal year (10/1 – 9/30).