Adoption Subsidy Rates in New York
In New York State, monthly adoption subsidy payments continue until the child is 21, unless the adoptive parent is no longer legally responsible for the support of the child or the child is no longer receiving any support from the adoptive parent. The adoption subsidy is supposed to follow the child. Adoptive paretns no longer providing support are not entitled to the subsidy and are to notify their local providers of the change. The “child” may request to have the subsidy received by another adult proving support of themselves if they are over 18.
Adoption subsidies are based on the foster care board rates in the child’s district of origin. A child who is eligible for adoption subsidy in New York can receive no less than 75% of the applicable (i.e. local district) foster care board rate in accordance with Title 18 NYCRR. Part 421, Section 421.24 (c)(1-18)
For a child placed outside the district, the applicable board rate can be either the rate of the adoptive parent’s county of residence or the the child’s district of origin. For a child placed outside the state the applicable rate is the rate of the child’s district of origin.
Medical Assistance (i.e Medicaid)
Medical Assistance (i.e Medicaid) continues for handicapped children within these same parameters. Medical Assistance for hard-to-place children is not continued past the eighteenth birthday unless there is a determination of need. States cannot require parents or guardians to place a child eligible for subsidy or Tile IV-E guardianship payments on their private or group insurance as a condition of Medicaid receipt.
Determining Adoption Subsidy rates
The income of the person(s) adopting a special needs child cannot be considered in determining whether or not to enter into a subsidy agreement. Income may only be considered for the purpose of determining the amount of the monthly payment. Local districts may elect to provide all subsidies at either 1) 100 percent of the local board rate regardless of income or 2) a lesser amount (not less than 75% of the applicable board rate) based on the prospective parent(s) annual income. The social services district must use the same option for all subsidized adoptions and determine the amount based on a percentage of the applicable state income standard.
A social services district has two options in determining the subsidy amount to be paid for care and maintenance of the handicapped or hard to place child. Unless the person(s) adopting voluntarily and, in writing, request and agree to a lower amount or request not to receive a subsidy, such amount must be either:
A. 100% of the applicable board rate regardless of the annual income of the person(s) adopting; or
B. An amount less than 100%, but not less than 75%, of the applicable board rate, as determined in accordance with the following three-step formula. The social services district must:
- Calculate the annual income of the person(s) adopting pursuant to the applicable provisions of paragraph 10 of Title 18 NYCRR, Section 421.24 (c)
- Determine the percentage such annual income is of the current 2016 Income Standards for the Child and Family Services Plan (pdf). For example: A family of three with $39,060 in annual income is at 194% of the 2016 state standard ($39,060/$20,160 = 1.9375).
- Use the following schedule to determine the amount to be paid based on the percentage calculated in step #2 above.
- Over 100%, but not more than 110% of applicable State income standard – 95% of Applicable Board Rate
- Over 110% but not more than 120% – 90% of Applicable Board Rate
- Over 120% but not more than 130% – 85% of Applicable Board Rate
- Over 130% but not more than 140% – 80% of Applicable Board Rate
- Over 140% – 75% of Applicable Board Rate
Example: A family of five (including the child to be adopted) with an income of $35,000 is at 123% of the state income standard and would receive a maximum 85% of the local board rate for that particular child (i.e. $35,000/ $28,440 = 1.23 or 123%).