University of Delaware College of Education and Human Development
Department of Human Development & Family Studies
Delaware Department of Education
Delaware Office of Early Learning
Delaware Institute for Excellence in Early Childhood

Tiered Reimbursement

Tiered reimbursement will provide on-going financial support for programs as they work on continuous quality improvement. Click here to visit the DHSS website for more information on Purchase of Care

To help a program estimate what the possible state supplement reimbursement rates could be, please review the Excel Spreadsheets with built-in formulas to allow estimations of additional funding support that might be available through the tiered reimbursement process. Reimbursement rates are listed at the bottom of this page. The spreadsheets are divided by county and program type. Please review the instructions sheet first.

Tiered Calculator Instructions
New Castle County: Child Care Center
New Castle County: Family Child Care
Kent County: Child Care Center
Kent County:  Family Child Care
Sussex County: Child Care Center
Sussex County: Family Child Care

Reimbursement rates for children birth through age 5:
tiers b-5

Reimbursement rates for school age children, 6 and older:
tiers school age

Agreement to Participate in Stars Tiered Reimbursement Bonus

Programs accepting POC are reimbursed at 65% of the 75th percentile of market rate plus $.50 for each eligible child. The tiered reimbursement incentive payment then is the difference between the 65% already being received by the program and the amount the Star 3 program would be eligible to receive for 80% of market rate. Beginning July 1, 2014 Early Childhood programs, including Family and Large Family Child Care, at Star Level 4 and Star Level 5 will receive increased tiered reimbursement percentages. The increase will be only for infants, toddlers and preschool children with POC. The increase does not include school-age children with POC. The increases will be 93% of the 2011 market rate for Star 4 programs and 102% of the 2011 market rate for Star 5 programs. School age children with POC will continue to be reimbursed at 90% in Star 4 programs and 100% in Star 5 programs. All programs at Star 3 will continue to receive 80% reimbursement for all children with POC regardless of the child’s age.

Tiered Reimbursement payments are made monthly and reflect the level of quality achieved or sustained during the previous month.  So, for example, if you achieved or sustained your Star Level on any day in the month of September, you would expect your first payment for the following month (in this case, October).

Tiered reimbursement is a separate payment to programs; their regular POC payment is paid monthly from the Division of Health & Social Services, and the additional tiered reimbursement payment (the difference between their regular payment and their tier level) is paid quarterly.

The related policy can be found in the Delaware Stars Policy Guide under Purchase of Care Tiered Reimbursement Incentive.

Thank you for visiting the Delaware Stars for Early Success website. Delaware Stars is a program funded and administered by Delaware Department of Education, managed by the Delaware Institute for Excellence in Early Childhood (DIEEC) in the Department of Human Development and Family Studies.