CCCAP: Reduced Copays

The Need

Affordability is a major barrier for many families trying to access licensed, quality child care. Reducing family copayments for Colorado Child Care Assistance Program (CCCAP) makes the program a viable option for more parents and caretakers, giving them the ability to work or attend school, and have more money for food, transportation, housing, and other needs. 

The Strategy

This strategy lowers the cost of child care for low-income families enrolled in CCCAP by reducing the family's out-of-pocket copayment, also known as the parent fee. 

CCCAP instituted a new copay structure on July 1, 2021, establishing a formula based on a marginal rate increase rather than on an increased percentage of a family’s gross income. The marginal rate eliminates the steep increase a family would face if its income rose under the previous formula. The new formula slowly increases the copay amount when a family’s income rises, allowing families to retain more of that income.

Key Outcomes and Learnings

The reduced copayments policy helps keep Colorado responsive to evolving federal requirements and has helped families save an average of $127.00 each month since July 1, 2021.