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Estimating minimum adequate foster care costs for children in the United States

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  • Ahn, Haksoon
  • DePanfilis, Diane
  • Frick, Kevin
  • Barth, Richard P.

Abstract

Although foster care homes play a crucial role in providing stable placements to children who enter the child welfare system due to maltreatment, there is currently no federal minimum rate nor standard methodology to establish adequate rates to support foster parents to meet these children's needs. Therefore, it is important to establish a model to estimate the real costs associated with caring for children to serve as a foundation for states to set adequate reimbursement rates. The objectives of this study are to: use the methodology of a 2007 study to establish foster care minimum adequate rates for children (MARC) based on the child's age and geographical location in every state; update the MARC with cost of living adjustments to 2016; examine changes in gaps between the MARC and the current foster care rates; and identify states that have made increases to their reimbursement rates, relative to the MARC over time. Results found that all but four states provide lower foster care reimbursement rates than the adequate costs in 2016. This study recommends that, at the federal level, enhanced precision in operational definitions of care categories could increase consistency in the way that states reimburse foster families. Additionally, findings provide policy suggestions to establish a national methodology standard and increase foster care rates to the level that will meet children's needs. This study will enhance the scant body of literature found on establishing an economic model to estimate foster care costs.

Suggested Citation

  • Ahn, Haksoon & DePanfilis, Diane & Frick, Kevin & Barth, Richard P., 2018. "Estimating minimum adequate foster care costs for children in the United States," Children and Youth Services Review, Elsevier, vol. 84(C), pages 55-67.
    • Handle: RePEc:eee:cysrev:v:84:y:2018:i:c:p:55-67
    DOI: 10.1016/j.childyouth.2017.10.045
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    References listed on IDEAS

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    1. Mihalo, Jennifer R. & Strickler, Amy & Triplett, Dawn R. & Trunzo, Annette C., 2016. "Treatment foster parent satisfaction: Survey validation and predictors of satisfaction, retention, and intent to refer," Children and Youth Services Review, Elsevier, vol. 62(C), pages 105-110.
    2. Pac, Jessica, 2017. "The effect of monthly stipend on the placement instability of youths in out-of-home care," Children and Youth Services Review, Elsevier, vol. 72(C), pages 111-123.
    3. Joseph Doyle & H. Peters, 2007. "The market for foster care: an empirical study of the impact of foster care subsidies," Review of Economics of the Household, Springer, vol. 5(4), pages 329-351, December.
    4. Daniel, Ellice, 2011. "Gentle iron will: Foster parents' perspectives," Children and Youth Services Review, Elsevier, vol. 33(6), pages 910-917, June.
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    Cited by:

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    2. Imani Careese Johnson & Solomon Hadi Achulo & Kanisha Coleman Brevard & David Ansong, 2024. "Examining Financial Hardship and Caregiver Subgroups in Kinship Foster Placements: A Machine Learning Approach," Societies, MDPI, vol. 14(3), pages 1-13, March.
    3. Robert Bifulco & Iuliia Shybalkina, 2022. "Fiscal Impacts of the Opioid Crisis on State and Local Governments," The ANNALS of the American Academy of Political and Social Science, , vol. 703(1), pages 324-349, September.
    4. Xu, Yanfeng & Zhao, Qianwei & Schuler, Brittany R. & Levkoff, Sue E., 2022. "Material hardship among custodial grandparents in COVID-19 and its associations with Grandchildren’s physical and mental health: A latent class analysis," Children and Youth Services Review, Elsevier, vol. 132(C).
    5. Bai, Rong & Collins, Cyleste & Fischer, Robert & Crampton, David, 2019. "Pursuing collaboration to improve services for child welfare-involved housing unstable families," Children and Youth Services Review, Elsevier, vol. 104(C), pages 1-1.
    6. Davidson, Ryan D. & Tomlinson, Claire S. & Beck, Connie J. & Bowen, Anne M., 2019. "The revolving door of families in the child welfare system: Risk and protective factors associated with families returning," Children and Youth Services Review, Elsevier, vol. 100(C), pages 468-479.

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