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016.15.4-VIII-I. Adoption Subsidy

AR ADC 016.15.4-VIII-IArkansas Administrative CodeEffective: March 1, 2024

West's Arkansas Administrative Code
Title 016. Department of Human Services
Division 15. Division of Children and Family Services
Rule 4. Policy and Procedure Manual
Chapter VIII. Services to Provide Other Permanent Living Situations
Effective: March 1, 2024
Ark. Admin. Code 016.15.4-VIII-I
016.15.4-VIII-I. Adoption Subsidy
Currentness
The Division of Children and Family Services (DCFS or the Division) provides an adoption subsidy as a service to assist in making adoption possible for a child, who, with special needs, might not otherwise be adopted and for whom a family is not readily available. A subsidy is allocated for the purpose of meeting the needs of the child. In addition, payments for one-time expenses, known as a non-recurring adoption subsidy, may be obtained in order to reimburse the family for out-of-pocket pre-adoptive or finalization expenditures.
A child must be legally free for adoption with parental rights terminated for an adoption subsidy to be put in place. No payment may be made to parents with respect to any applicable child that is not a citizen or resident of the United States, was adopted outside of the United States, or was brought into the United States for the purpose of being adopted. A child that is not a citizen or resident of the US, was adopted outside the US, or brought into the US for the purpose of being adopted, may become eligible for adoption assistance payments if the initial adoption of the child by the parents is a failure and the child is subsequently placed into foster care.
A child in foster care placed in an adoptive home continues status as a child in foster care until finalization of the adoption and the adoption subsidy is initiated.
Any individual who is adopting or who is considering adopting a child who is in foster care will be notified of their potential eligibility for a Federal Adoption Tax Credit.
The adoptive parents are required to inform the Division of circumstances that would make them ineligible for adoption assistance payments or eligible for adoption assistance payments in a different amount.
Adoption subsidies can be funded through federal title IV-E adoption assistance or state funds depending on the child's eligibility.
FEDERAL TITLE IV-E SUBSIDY
To be eligible for federal Title IV-E adoption assistance, the child must meet the special needs determination and IV-E eligibility rules.
Special Needs Determination
To be considered a child with special needs, a child must meet the criteria below:
A. The state has determined the child cannot or should not be returned to the home of his parents.
B. The state has determined that a specific factor or condition, or combination of factors and conditions, make the child more difficult to place for adoption without providing title IV-E adoption assistance or title XIX medical assistance. In Arkansas these factors are:
1. A Caucasian child nine (9) years or older;
2. A child of color who is two (2) years or older; or
3. A member of any sibling group being placed together, who share at least one (1) biological parent and who have either lived together or otherwise developed a bond prior to adoptive placement.
4. A child with a severe medical or psychological need that requires ongoing rehabilitation or treatment.
a) Children at high risk for the development of a serious physical, mental, developmental, or emotional condition may also be considered special needs if documentation of the risk is provided by a medical professional specializing in the area of the condition for which the child is considered at risk, including children exposed to or affected by maternal misuse of substances at birth (Garrett's Law). But no subsidy payment will be made without documentation that the child has developed the actual condition (see Procedure VIII-I1).
C. The state must determine that in each case a reasonable, but unsuccessful, effort to place the child with appropriate parents without providing adoption assistance has been made such as the use of adoption exchanges, referral to appropriate specialized adoption agencies.
1. The exception to this requirement is when it would not be in the best interests of the child because of factors such as the existence of significant emotional ties with prospective adoptive parents while in the care of those parents as a foster child or adoption by a relative.
2. In an effort to find an appropriate adoptive home for a child, and meet the requirement that a reasonable, but unsuccessful, effort be made to place the child without adoption assistance, DCFS will not unnecessarily lengthen the child's time in foster care in doing so. Once it is determined that placement with a certain family is in the child's best interest, DCFS will continue to work toward adoption finalization.
3. If it is determined that the child cannot or should not return home and the child meets the special needs definition, then the Adoption Specialist can pose the question of whether the prospective adoptive parents are willing to adopt without assistance. If they say cannot adopt the child without adoption assistance, the requirement for a reasonable, but unsuccessful, effort to place the child without providing adoption assistance will be met.
4. It must be documented in each child's case record the specific factor(s) that make the child difficult to place and describe the efforts to place the child for adoption without providing assistance.
Title IV-E Eligibility Rules
Once the above special needs criteria are met, there are six (6) ways by which a child can be eligible for Title IV-E adoption assistance. The child only needs to qualify in one of the following ways:
A. The child is AFDC-eligible.
Adoption assistance eligibility that is based on a child's AFDC eligibility is predicated on a child meeting the criteria both at the time of removal and in the month the adoption petition is initiated. At the time adoption proceedings were initiated, the child must have been removed from the home of a specified relative as a result of a judicial determination to the effect that continuation therein would be contrary to the welfare of the child. For the purpose of adoption assistance, a child must meet the AFDC criteria in the specified relative's home from which he or she is removed. In addition, the special needs determination must be made prior to finalization of the adoption.
B. The child is eligible for Supplemental Security Income (SSI) benefits.
A child is eligible for adoption assistance if, at the time the adoption petition is filed, the child meets the requirements for title XVI SSI benefits, and prior to the finalization of the adoption is determined by the state to be a child with special needs. There are no additional criteria that a child must meet to be eligible for title IV-E adoption assistance when eligibility is based on a child with special needs meeting SSI requirements. Specifically, how a child is removed from his home or whether the state has responsibility for the child's placement and care is irrelevant in this situation. The child's eligibility for SSI benefits must be established no later than at the time the adoption petition is filed.
C. The child is eligible as a child of a minor parent.
A child is eligible for title IV-E adoption assistance in this circumstance if:
1. The child's parent is in foster care and receiving title IV-E foster care maintenance payments that cover both the minor parent and the child at the time the adoption petition is initiated; AND
2. Prior to the finalization of the adoption, the child of the minor parent is determined by the state to meet the definition of a child with special needs.
There is no requirement that a child must have been removed from the home as a result of a judicial determination. However, if the child and minor parent have been separated in foster care prior to the time of the adoption petition, the child's eligibility for title IV-E adoption assistance must be determined based on the child's current and individual circumstances.
D. Age at Adoption.
Beginning January 1, 2018 through June 30, 2024, all children age two (2) or older by the end of that fiscal year are eligible based on age. Starting July 1, 2024 all children will be eligible based on age. Younger children adopted with their age-eligible siblings are also IV-E eligible.
E. Length of Time in Foster Care
As of October 1, 2009, children with special needs who have been in care for at least sixty (60) consecutive months became eligible for IV-E adoption assistance. Siblings of these children will also be eligible (regardless of their length of time in care) if they are adopted with the eligible sibling.
F. The child is eligible due to prior title IV-E adoption assistance eligibility.
In the situation where a child is adopted and receives title IV-E adoption assistance, but the adoption later dissolves or the adoptive parents die, a child may continue to be eligible for title IV-E adoption assistance in a subsequent adoption. The only determination that must be made by the state prior to the finalization of the subsequent adoption is whether the child is a child with special needs. Need and eligibility factors must not be re-determined when such a child is subsequently adopted because the child is to be treated as though his circumstances are the same as those prior to his previous adoption. Since title IV-E adoption assistance eligibility need not be reestablished in such subsequent adoptions, the manner of a child's removal from the adoptive home, including whether the child is voluntarily relinquished to an individual or private agency, is irrelevant.
STATE SUBSIDY
A state funded adoption subsidy may be available to a child who is not IV-E eligible provided that the child is in DHS custody and meets the special needs definition.
A state legal subsidy may be defined as OCC legal services provided for children in DHS custody. A legal subsidy does not include the use of a private attorney. The children are eligible for a legal subsidy whether or not they meet the criteria for special needs and without regard to eligibility for IV-E, state maintenance subsidy, or non-recurring subsidy. Adoption assistance payments may be terminated if it is determined that:
A. The child has attained the age of eighteen (18);
B. The parents are no longer legally responsible for the support of the child; or
C. The child is no longer receiving support from the adoptive parents.
SUBSIDY AMOUNT
If eligible, the Division will make adoption assistance payments to adoptive parents in amounts so determined through an adoption assistance agreement. The amount of such payment:
1) Will take into account the circumstances of the adopting parents and the needs of the child being adopted;
2) May be adjusted periodically with the concurrence of the adoptive parents to reflect changing circumstances; and
3) May not exceed the child's foster care maintenance payment that is in effect at the time a subsidy is approved (if the child with respect to whom the adoption assistance payment is made had been in a resource home).
The standard foster care maintenance board rate scale is found below. New rates will not be paid until the child reaches the next age range.
Age of Child
Amount of Monthly Maintenance
Birth through five (5) years
$451.00
Six (6) through eleven (11) years
$484.00
Twelve (12) through fourteen (14) years
$517.00
Fifteen (15) through seventeen (17) years
$550.00
A request for a larger monthly adoption maintenance subsidy may be made for a child who has received a higher than standard monthly foster care board payment. A monthly subsidy payment cannot exceed the child's foster care board rate which is in effect at the time a subsidy is approved.
Special Board Rate formulas and procedures will be used strictly as guides in determining an appropriate nonstandard rate to discuss with the family and to use in negotiating a lower subsidy rate (when appropriate). No subsidy will exceed $460.00 above the standard board rate for the child's age group. However, if the child is SSI eligible, the rate can go up $460.00 above the SSI rate.
Special subsidies are state funded, and the Adoption Subsidy Coordinator, Adoption Services Unit, will consider the child's eligibility on a case-by-case basis. The consideration will be based on the information developed during the Adoption Specialist's determination of the child's special needs in relation to adoption planning. The adoptive parent's gross income will be considered, as well as other financial resources and health insurance, in determining eligibility for a special subsidy. For more information, see Procedure VIII-I1: Application for Adoption Subsidy.
SUBSIDY DENIAL
If any application for an adoption subsidy for a child under the age of eighteen (18) is initially denied, in accordance with federal regulations, the adoptive family may appeal the decision.
The types of situations that would constitute grounds for an appeal include:
A. Relevant facts regarding the child, the biological family or the child's background were known, but not presented to the adoptive parents prior to the adoption's finalization;
B. Any subsidy decision which the adoptive parents deem adverse to the child;
C. Erroneous determination by the Division that a child is ineligible for adoption assistance; and
D. Failure by the Division to advise adoptive parents of the availability of adoption assistance.
If an appeal is upheld, the child may be eligible for a federal (Title IV-E) or state subsidized adoption. The effective date of a federal (Title IV-E) retroactive subsidy payment will be the date of final order issued by the Administrative Law Judge.
SUBSIDY EXTENSION
Adoption assistance payments may be extended to the age of twenty-one (21) if the child has a mental or physical disability which warrants continuation and a federally-funded subsidy or state maintenance is received. If the state determines the youth has a mental or physical handicap that warrants the continuation of the adoption subsidy assistance up to the age of twenty-one (21), that youth is not subject to the education and employment requirements listed below for youth ages eighteen (18) through twenty-one (21).
Requests for extension of adoption subsidy agreements up to age twenty-one (21), due to a mental or physical handicap, must be submitted by the adoptive parent(s) to the Adoption Manager or designee at least three (3) months prior to the termination of the current adoption subsidy agreement. Such extension requests received after this timeframe, to include after the youth has turned eighteen (18) but not yet reached the age of twenty-one (21), may still be considered. However, any subsidy agreement that is extended past the age of eighteen (18) due to a mental or physical handicap will take effect on the date of the new subsidy agreement (reflecting that the extension is signed). Any monthly subsidy payments that were not made between the end date of the initial subsidy agreement and the date of the new subsidy agreement, reflecting a subsidy extension past age eighteen (18), will not be made retroactively.
In addition, if the child was adopted at age sixteen (16) or older, the adoption subsidy may be extended until age twenty-one (21) under the following circumstances:
A. The child is completing secondary education or a program leading to an equivalent credential;
B. The child is enrolled in an institution which provides post-secondary or vocational education;
C. The child is participating in a program or activity designed to promote, or remove barriers to, employment;
D. The child is employed for at least eighty (80) hours per month; or,
E. The child is incapable of doing any of the above described activities due to a medical condition.
The Division will ensure that the child meets these employment or education requirements. If a child is incapable of meeting the above referenced education or employment requirements due to a medical condition, the reason for which the child is incapable of meeting the education or employment requirements must be documented by a medical professional and updated annually until the child reaches twenty-one (21) years of age.
ADOPTION ASSISTANCE AGREEMENT
An Adoption Assistance Agreement, which is a written binding agreement between the adoptive parents, the Division, and other relevant agencies, must be signed and in effect at the time of or prior to the final decree of adoption.
The Adoption Assistance Agreement must:
A. Be signed by the adoptive parents and the Division, and be in effect before adoption assistance payments are made under Title IV-E, but no later than the finalization of the adoption;
B. Specify the duration of the agreement;
C. Specify the amount of the adoption assistance payment (if any) and the nature and amount of any other payments, services, and assistance to be provided (including non-recurring adoption expenses in agreements that became effective on or after January 1, 1987, for expenditures incurred by the parents on or after that date);
D. Specify the child's eligibility for title XIX and title XX;
E. Specify, with respect to agreements entered into on or after October 1, 1983, that the agreement remains in effect regardless of the state of residence of the adoptive parents; and
F. Contain provisions for the protection of the interests of the child in case the adoptive parents and child should move to another state while the agreement is in effect, or for agreements entered on or after October 1, 1983 (if needed).
If the service specified in the agreement is not available in the new state of residence, the state making the original assistance payment remains financially responsible for providing the specified service(s).
Any subsidy requests that are denied may undergo the appellate process to be upheld or reversed. For adoption subsidies that are requested and approved after adoption finalization has occurred, the Adoption Assistance Agreement (and, therefore, subsidy payments) will go into effect based on the adoption subsidy application approval date (i.e., not the adoption finalization date). This includes both IV-E and non-IV-E subsidies.
Any Adoption Assistance Agreement put in place after finalization of an adoption must:
A. Be signed by the adoptive parents and the Division and be in effect before adoption assistance payments are made under Title IV-E;
B. Specify the duration of the agreement;
C. Specify the amount of the adoption assistance payment (if any) and the nature and amount of any other payments, services, and assistance to be provided (including nonrecurring adoption expenses in agreements that became effective on or after January 1, 1987, for expenditures incurred by the parents on or after that date);
D. Specify the child's eligibility for title XIX and title XX;
E. Specify, with respect to agreements entered into on or after October 1, 1983, that the agreement remains in effect regardless of the state of residence of the adoptive parents; and
F. Contain provisions for the protection of the interests of the child in case the adoptive parents and child should move to another state while the agreement is in effect; and for agreements entered on or after October 1, 1983, if needed.
STATUS OF SUBSIDY WHEN A CHILD RE-ENTERS FOSTER CARE
When a child with an approved adoption subsidy enters foster care, adoption subsidy payments will continue to the adoptive parents. DCFS will work with Office of Chief Counsel to identify parents receiving adoption subsidy payments to request an order of child support for the subsidy amount. Child support will continue, as applicable, until the child is reunified in the family home or termination of parental rights occurs. If termination of parental rights occur, adoption subsidy payments will be terminated.
SUBSIDY REDETERMINATION
The federal title IV-E adoption assistance program does not require re-determinations of a child's eligibility. Although the title XIX Medicaid Program and the programs that, in part, may qualify a child initially for adoption assistance, such as AFDC and SSI, require re-determinations, they are unnecessary for the purpose of maintaining a child's eligibility for title IV-E adoption assistance.
SUBSIDY TERMINATION
Once a child has been determined eligible and is receiving title IV-E adoption assistance, the state may terminate the assistance only under the following circumstances:
A. Upon the adoptive parent's(s') request;
B. Upon the child's death;
C. Upon the death of the adoptive parent(s) of the child (in a two-parent family, this means both parents);
D. At the cessation of legal responsibility of the adoptive parent(s) for the child;
E. If the Division determines that the child is no longer receiving support from the adoptive parent(s); or
F. When the child reaches the age of eighteen (18) unless:
1) The child's subsidy was extended (per the adoption subsidy agreement) past the age of eighteen (18), due to a mental or physical disability which warranted continuation of a federally-funded subsidy or state maintenance to be received, in which case the adoption subsidy would be terminated when the child attains the age of twenty-one (21); or
2) The child's subsidy was extended past the age of eighteen (18) (per the adoption subsidy agreement) because the child was adopted at age sixteen (16) or older, in which case the child's subsidy would be terminated when the child attains the age of twenty-one (21), provided that the child also met one of the following circumstances from eighteen (18) years of age through twenty-one (21) years of age:
a) The child is completing secondary education or a program leading to an equivalent credential;
b) The child is enrolled in an institution which provides post-secondary or vocational education;
c) The child is participating in a program or activity designed to promote, or remove barriers to, employment;
d) The child is employed for at least eighty (80) hours per month; or
e) The child is incapable of doing any of the above described activities due to a medical condition.
A fourteen (14) calendar day written notice will be sent to the adoptive parent(s) informing them of the Division's intent to terminate the subsidy. The notice will also inform the parent(s) of their right to appeal the decision and how to request an administrative hearing in order to appeal. The notice will be sent via process server or via certified mail, restricted delivery with a returned receipt requested.
MEDICAL COVERAGE
The Division will ensure health insurance coverage for any child determined to be a child with special needs for whom there is an adoption subsidy agreement in effect. Federal title IV-E Medicaid will be utilized to provide medical coverage for a title IV-E eligible child. Medical coverage, for a non-title IV-E eligible child who has a special need for medical or rehabilitative care, may be provided under the Medicaid category Non-title IV-E Special Needs Adoptive Child, if the child is eligible for state maintenance subsidy and meets specified Medicaid eligibility requirements (see Medical Services Policy 6590.2 Eligibility Requirements).
IV-E eligible children, who are adopted on January 1, 2019, and thereafter, are eligible for Medicaid coverage regardless of whether or not IV-E adoption subsidy payments are actually made for the child. Children approved for deferred adoption subsidy payments will qualify, as applicable, for Medicaid coverage to begin when subsidy eligibility begins.
If the child does not qualify for Medicaid under federal title IV-E or Non-title IV-E Special Needs Adoptive coverage, the family may make application for Medicaid under a different category.
Medicaid coverage associated with the adoption subsidy will cease when the subsidy case is closed. The child may qualify for other categories of Medicaid if certain eligibility criteria are met. However, once the adoption subsidy case is closed, it is the responsibility of the child, or the child's family, to apply for other categories of Medicaid at their local DHS county office (via the Division of County Operations). Medicaid coverage through the local DHS county office is not guaranteed.
Any eligible child, for whom there is an adoption assistance agreement in effect, is deemed to be a dependent child and is deemed to be a recipient of AFDC (per AFDC requirements in effect 7-16-1996). Any child of such eligible child will be eligible for such services.
The Division shall access resources as necessary in Arkansas, the region, and nation to find adoptive families for children with special needs.
When a child with an approved adoption subsidy enters foster care, adoption subsidy payments will continue to the adoptive parents. DCFS will work with Office of Chief Counsel to identify parents receiving adoption subsidy payments to request an order of child support for the subsidy amount. Child support will continue, as applicable, until the child is reunified in the family home or termination of parental rights occurs. If termination of parental rights occur, adoption subsidy payments will be terminated.
PROCEDURE VIII-I1: Initial Application for Adoption Subsidy
The Family's Adoption Specialist will:
A. Follow the same subsidy-related policy and procedures, including subsidies for non-recurring legal expenses, regardless if the adoption is being handled in-state or out-of-state;
B. Ensure close coordination with the other state's adoption worker, if applicable;
C. Determine that the child has a special need in relation to adoption planning, is between the age of birth to 18 years, is in the custody of DHS (for state subsidy only), and is legally free for adoption;
D. Determine if the child is eligible for federal IV-E adoption maintenance subsidy first. If ineligible for title IV-E, determine if the child is eligible for state funded adoption maintenance subsidy;
E. Determine that a reasonable, but unsuccessful, effort has been made to place the child without providing adoption subsidy;
F. Document in each child's case record the specific factor(s) that make the child difficult to place and describe the efforts to place the child for adoption without providing assistance.
G. Determine what type of adoption subsidies are needed, and complete all application procedures by the fourth (4th) month of placement;
H. Review and sign the CFS-425: Application for Adoption Subsidy after the adoptive parent completes it;
I. Print title IV-E verification of eligibility from the Division's information management system;
J. Be clear in the discussion with the family that they will only be screening for a determination of special needs, subsidy eligibility, and making a recommendation to the Adoption Services Unit. Under no circumstances will the Adoption Specialist give the adoptive family the subsidy determination prior to receipt of approval from the Adoption Services Unit. The Adoption Specialist must also explore other resources and assistance that may be available for the child and adoptive family when screening for a subsidy;
K. Complete the “CFS-427: Determination of Eligibility for Adoption Subsidy” and attach the following to the CFS-427:
1) Verification of the costs for a private attorney to finalize an adoption whether in-state or out-of-state, if applicable; and
2) Verification of court costs to finalize an adoption, if applicable;
L. Complete the following:
1) Special Board Rate Request to have a professional verify the child's complete medical condition, including dental, psychological, etc., as well as the diagnosis, prognosis, and costs of treatment for one year if a special subsidy is requested. Children at high risk for the development of a serious physical, mental, developmental, or emotional condition may be considered special needs if documentation of the risk is provided by a medical professional specializing in the area of the condition for which the child is considered at risk. However, no subsidy payment will be made without documentation that the child has developed the actual condition. In order to be eligible for special needs subsidy based on developmental delay, documentation must be provided, current within six (6) months, attesting to the fact that the child has a delay of twenty-four percent (24%) or more in two (2) major developmental categories;
2) Statement that lists the child's source of financial resources and amount (other than foster care board payment, if applicable);
3) Verification from the appropriate agency which explains the child's eligibility for financial benefits (SSI, other types of Social Security benefits, VA, etc.) once the adoption is finalized, if applicable (provide the agency with the amount of the adoptive parent's income in order that a statement can be prepared). Once a child has been determined eligible for a federal subsidy, the adoptive parents cannot be rejected for adoption assistance nor can they have payments reduced without their agreement, as a result of their income, resources, or the child's resources; and
4) Verification from Children's Medical Services (CMS) which explains the child's eligibility for services once the adoption is finalized, if applicable (provide CMS with the amount of the adoptive parent's income in order that a statement can be prepared);
M. Inform the adoptive parents that subsidy payments may continue until the end of the month of the child's eighteenth (18th) birthday, or by the end of the month of the child's twenty-first (21st) birthday if he or she meets one of the established criteria described in the “Subsidy Extension” policy subsection above and the extension is requested by the adoptive parent as described in the Subsidy Extension” policy subsection above.
N. Provide the following documentation with the initial adoption subsidy application packet:
1) Emergency Petition;
2) Emergency Order or other initial custody court order;
3) Order for Termination of Parental Rights with Power to Consent to Adoption;
4) A copy of the CMA Worksheet in CHRIS or, if applicable, award letter for SSI; and
5) A copy of the approved selection form, as applicable.
O. Prepare a narrative entitled “Subsidy Family Profile” about the adoptive family to include:
1) Type of adoption (foster parent, non-foster parent, relative, or fictive kin);
2) Type of subsidy (maintenance, special, non-recurring, non-IV-E Medicaid);
3) Funding source (federal or state);
4) Child to receive subsidy (first name, age, race, developmental information, description of special needs, problems, limitation, reasons for being in out-of-home placement, and brief description of out-of-home placement history);
5) Adoptive father (name, age, education, employment, and health);
6) Adoptive mother (name, age, education, employment, and health);
7) Other children in family (adopted, birth, custody, out-of-home placement, name, age, education, and health);
8) Others in household (explain if applicable);
9) Marriage (length and comments about the quality of the relationship);
10) Housing (brief description);
11) Income/resources (sources and amounts, health insurance coverage, etc.);
12) Exploration of other resources and assistance that may be available for the child and adoptive family when screening for a subsidy;
13) Family and adoptive child relationship (description to include strengths and challenges);
14) Reason for adoption subsidy (explain reason child needs adoption subsidy and reason for the adoptive parent requesting it);
15) Subsidy request (maintenance costs per month and for not more than a year), special subsidy type of service and costs for not more than a year, legal assistance, if the OCC Attorney is requested to finalize the adoption, court costs, etc., other subsidy requests and costs, etc.; and
16) Recommendation to approve or deny.
P. Submit the completed packet to the Adoption Supervisor for review and comment; and
Q. Upon completion of supervisory review, send completed forms, narrative, documents, and other attachments to the Adoption Subsidy Coordinator.
The Adoptive Subsidy Coordinator will:
A. Assess all submitted forms and documentation, make a recommendation to approve or deny the adoption subsidy application, and provide written notification to the Adoption Specialist of the recommendation within three (3) working days of receiving the initial application packet from the Adoption Specialist. Contact the Adoption Specialist if additional information or forms are needed;
B. Prepare the “CFS-428: Adoption Assistance Agreement” and route it to the Adoption Manager for approval, then send the CFS-428 to the DCFS Director or designee for signature;
C. Send the signed CFS-428to [FN1] the Adoption Specialist with written instructions;
D. Notify the adoptive parent in writing if the application is denied and explain the reason, the internal review procedures, and the Administrative Fair Hearing procedures;
E. Send a copy of the notification of denial to the Adoption Specialist; and
F. Scan all subsidy packets into E-doctus.
Upon receipt of approval of the adoption subsidy, the Adoption Specialist will:
A. Meet with the adoptive parent to explain an approval;
B. Review the “CFS-428: Adoption Assistance Agreement;”
C. Secure the adoptive parent's signature on the CFS-428 within five (5) working days from receipt of the agreement or prior to finalization;
D. Send the Adoption Subsidy Coordinator and adoptive parent a copy of the signed CFS-428 within three (3) working days upon receipt;
E. Contact the Adoption Subsidy Coordinator in writing within three (3) working days from the meeting if the adoptive parent has a disagreement with the contents of the CFS-428;
F. Meet with the adoptive parent to explain a denial, review the decision, and explain internal review procedures within ten (10) working days from receipt of written notification to deny; and
G. Send a copy of the Adoption Petition and Final Decree of Adoption to the Adoption Subsidy Coordinator within five (5) working days upon receipt.
PROCEDURE VIII-I2: Title IV-E Redetermination
The federal title IV-E adoption assistance program does not require re-determinations of a child's eligibility. Although the title XIX Medicaid Program and the programs that, in part, may qualify a child initially for adoption assistance, such as AFDC and SSI, require re-determinations, they are unnecessary for the purpose of maintaining a child's eligibility for title IV-E adoption assistance. Once a child has been determined eligible and is receiving title IV-E adoption assistance, the state may terminate the assistance only under the following circumstances:
G. [FN1] Upon the adoptive parent's(s') request;
H. Upon the child's death;
I. Upon the death of the adoptive parent(s) of the child (in a two-parent family, this means both parents);
J. At the cessation of legal responsibility of the adoptive parent(s) for the child;
K. If the Division determines that the child is no longer receiving support from the adoptive parent(s); or
L. When the child reaches the age of eighteen (18) unless:
3) [FN1] The child's subsidy was extended (per the adoption subsidy agreement) past the age of eighteen (18), due to a mental or physical disability which warranted continuation of a federally-funded subsidy or state maintenance to be received, in which case the adoption subsidy would be terminated when the child attains the age of twenty-one (21); or
4) The child's subsidy was extended past the age of eighteen (18) (per the adoption subsidy agreement) because the child was adopted at age sixteen (16) or older, in which case the child's subsidy would be terminated when the child attains the age of twenty-one (21), provided that the child also met one of the following circumstances from eighteen (18) years of age through twenty-one (21) years of age:
f) [FN1] The child is completing secondary education or a program leading to an equivalent credential;
g) The child is enrolled in an institution which provides post-secondary or vocational education;
h) The child is participating in a program or activity designed to promote, or remove barriers to, employment;
i) The child is employed for at least eighty (80) hours per month; or
j) The child is incapable of doing any of the above described activities due to a medical condition.
The Division will ensure that the child meets these employment or education requirements. If a child is incapable of meeting the above referenced education or employment requirements due to a medical condition, the reason for which the child is incapable of meeting the education or employment requirements must be documented by a medical professional and updated annually until the child reaches twenty-one (21) years of age.
PROCEDURE VIII-I3: Criteria for SSI Eligible Private Agency and Independent Adoptions
A child who is SSI eligible and is part of an independent adoption (i.e., not in the custody of a public or private agency) is eligible for a title IV-E subsidy.
If a child received title IV-E adoption assistance in a previous adoption that dissolved or in which the adoptive parents died, the child is eligible for title IV-E assistance when he or she is subsequently adopted (See Adoption Subsidy Policy VIII-I: The Adoption Subsidy Coordinator must be contacted for an application packet).
The Adoption Subsidy Coordinator will:
A. Accept and review referrals for independent adoption and private agency subsidy applications;
B. Assess all submitted forms and documentation, make a recommendation to approve or deny the adoption subsidy application, and provide written notification to the applicant, the person who arranged the independent adoption, or the private agency representative of the decision, within fifteen (15) working days of receiving the initial application packet from the Adoption Specialist;
C. Contact the applicant, the person who arranged the independent adoption, or private agency representative, if additional information or forms are needed;
D. Prepare the CFS-428: Adoption Assistance Agreement if it is recommended the adoption subsidy application be approved, and route the CFS-428 to the Adoption Manager for approval, then send the CFS-428 to the DCFS Director or designee for signature;
E. Send signed CFS-428: Adoption Assistance Agreement to the Applicant and Private Agency representative, if applicable, with written instructions;
F. Notify the adoptive parent in writing if the application is denied, to explain the reason for the denial, the internal review, and the Administrative Fair Hearing procedures; and
G. In CHRIS:
1) Enter the adoptive parents and adoptive child as clients in the newly opened Adoption Case;
2) Complete the adoptive child's Characteristic screen to identify the special needs; and
3) Complete the Adoption screens (General Information, Affidavit of Disclosure, and Subsidy) and request the approval of the adoption subsidy.
PROCEDURE VIII-I4: Amendment to an Adoption Subsidy
The Adoption Support Specialist will:
A. Follow the same subsidy-related policy and procedures, regardless if the adoption is being handled in-state or out-of-state;
B. Ensure close coordination with the other state's adoption worker, if applicable;
C. Amend a subsidy if there is documentation that an “at risk” child has developed a serious physical, mental or emotional condition;
D. Determine with adoptive parent if an amendment to the existing adoption subsidy is needed. An amendment may be requested at any time. The adoptive family must consent to any subsidy amendment (title IV-E only);
E. Determine if a change in subsidy payee is appropriate, based on documentation of divorce and custody, by:
1) Reviewing the divorce decree and custody order to determine which parent was granted full custody of the child;
2) Ensuring that the parent awarded full custody of the child in the divorce decree or custody order signed the original adoption subsidy; and
3) Re-routing the subsidy payment to the adoptive parent only after verification of steps one (1) and two (2) above;
F. Determine if there has been a significant change in type of condition of the child to warrant the amendment of a federally funded subsidy. A state may renegotiate an adoption assistance agreement if the adoptive parents request an increase in payment due to a change in type of condition of the child. A higher foster care rate would have been paid on behalf of the child if the child had still been in foster care. Review and sign the “CFS-425: Application for Adoption” after the adoptive parent completes it;
G. Carefully review all requests for increases in payment for state funded subsidies and special subsidies. As state dollars are limited, an exploration of other resources is required and must be documented in the narrative when submitting an amendment request. The Division Director can review extraordinary circumstances at his or her discretion;
H. Complete the “CFS-427: Determination of Eligibility for Adoption Assistance” if a special subsidy is requested;
I. Complete a narrative to address the type of subsidy needed, the source of funding, the reason for the subsidy, the costs, and recommendation;
J. Send all requests, the forms, narrative, and any other documents to the Adoption Subsidy Coordinator within twenty (20) working days from the initial contact with the adoptive parent. For requests of special board rate increases, forward completed packets to the Adoption Subsidy Coordinator for review and comment. Communicate with the adoptive parent to explain an approval, to review the “CFS-428: Adoption Assistance,” and to secure the adoptive parent's signature on the CFS-428 within ten (10) working days from receipt of the agreement;
K. Send the Adoption Subsidy Coordinator and adoptive parent a copy of the signed CFS-428;
L. Send the Adoption Subsidy Coordinator a written notification within three (3) working days from the meeting with the adoptive parent to explain a disagreement with the contents of the CFS-428;
M. Meet with the adoptive parent(s) to explain a denial, review the decision, and explain internal review procedures within ten (10) working days from receipt of the written notification to deny;
N. In the Division's information management system, if subsidy amendment is approved, change the Subsidy Ending Date on the Adoption Subsidy screen to stop the existing adoption subsidy. Then, click Clear and enter the new amended subsidy with the new Beginning and Ending dates and the subsidy amount. Request the Approval for the amended subsidy amount;
O. Prepare the CFS-428 if the adoption subsidy application is approved, and route the CFS-428 to the Adoption Manager for approval, then send the CFS-428 to the DCFS Director or designee for signature; and
P. Notify the adoptive parent in writing if the application is denied, to explain the reason for the denial, the internal review, and the Administrative Fair Hearing procedures.
PROCEDURE VIII-I5: Request for Continuation of Federal and State Funded Adoption Maintenance Subsidy after Age 18
In some cases, a federal adoption maintenance subsidy or state-funded maintenance subsidy may be continued for adoptees eighteen (18) to twenty-one (21) years old. Medicaid, however, cannot be extended past age eighteen (18) for state-funded subsidies. While the foster care Medicaid cannot be extended beyond the month the child turns eighteen (18), the family may apply for another type of Medicaid at their local county office via the Division of County Operations. Medicaid coverage through the local DHS county office is not guaranteed.
If the adoptive parent requests that the adoption subsidy be continued past the child's eighteenth (18th) birthday, the following criteria must be met:
A. The adoptive parent must be receiving a federal or state-funded adoption maintenance subsidy prior to the child's eighteenth (18th) birthday;
B. The adoptive parent must make a formal written request of the DCFS Adoption Support Specialist to continue the subsidy and provide proof that the child:
1) Has a mental or physical disability which warrants continuation; or
2) Was adopted at age sixteen (16) or older and:
a) Is completing secondary education or a program leading to an equivalent credential;
b) Is enrolled in an institution which provides post-secondary or vocational education;
c) Is participating in a program or activity designed to promote, or remove barriers to, employment;
d) Is employed for at least eighty (80) hours per month; or
e) Is incapable of doing any of the above described activities due to a medical condition.
The Division will ensure that the child meets these employment or education requirements. If a child is incapable of meeting the above referenced education or employment requirements due to a medical condition, the reason for which the child is incapable of meeting the education or employment requirements must be documented by a medical professional and updated annually until the child reaches twenty-one (21) years of age.
The Adoption Support Specialist will:
A. Include the above documentation and recommend whether the adoption subsidy should be continued past the child's eighteenth (18th) birthday;
B. If the adoption subsidy is approved to continue past the child's eighteenth (18th) birthday:
1) Prepare the CFS-428-A: Adoption Assistance Agreement for State Funded Payments or CFS-428-B: Adoption Assistance Agreement for Federal IV-E Funded Assistance, as appropriate;
2) Route the CFS-428-A: Adoption Assistance Agreement for State Funded Payments or CFS-428-B: Adoption Assistance Agreement for Federal IV-E Funded Assistance, as appropriate, to the Adoption Services Unit Manager for review;
3) If the Adoption Services Unit Manager and DCFS Director approve the CFS-428-A or CFS-428-B, as appropriate:
a) Change the Subsidy Ending Date on the Adoption Subsidy screen in The Division's information management system, to continue subsidy past the child's eighteenth (18th) birthday;
C. If the adoption subsidy is not approved to continue past the child's eighteenth (18th) birthday by either the Adoption Support Specialist, Adoption Manager, or DCFS Director or designee:
1) Notify the adoptive parent in writing and explain the reason for denial; and
2) Document the denial in CHRIS.
The Adoption Manager will:
A. Approve or deny the “CFS-428-A: Adoption Assistance Agreement for State Funded Payments” or “CFS-428-B: Adoption Assistance Agreement for Federal IV-E Funded Assistance”, as appropriate;
B. If the Adoption Assistance Agreement is approved, send to the DCFS Director or designee for signature; and
C. If the Adoption Assistance Agreement is denied, notify the Adoption Support Specialist and explain the reason for denial.
The DCFS Director or designee will:
A. Approve or deny the CFS-428-A or CFS-428-B, as appropriate.
B. Return the CFS-428-A or CFS-428-B, as appropriate, to the Adoption Manager.
PROCEDURE VIII-I6: Interstate Compact on Adoption and Medical Assistance (ICAMA)
A child who is receiving Medicaid as a result of an adoption subsidy may continue to receive the subsidy if the child moves to or from another state.
The Adoption Support Specialist will:
A. Contact the ICAMA Coordinator or refer an adoptive parent to the ICAMA Coordinator in the DCFS Adoption Services Unit; and
B. Provide the ICAMA Coordinator with the adoptive family's new address, phone number, and the effective date of the move.
The ICAMA Coordinator will:
A. Complete the ICAMA forms in relation to a child who is moving from the state and forward the forms to the new state of residence. Forward the following:
1) Form 6.01 (Notice of Medicaid Eligibility/Case Activation);
2) Form 6.02 (Notice of Action); and
3) Form 6.03 (Change in Child/Family Status), if applicable;
B. Forward completed ICAMA forms to the Eligibility Unit in relation to a child who moves into the state:
1) Form 6.01 OR a COBRA Letter; and
2) Copy of the Adoption Subsidy Agreement.
PROCEDURE VIII-I7: Payment for Non-recurring Adoption Expenses and Special Subsidy
The Adoption Specialist will:
A. Submit a billing packet to the Adoption Subsidy Coordinator for non-recurring adoption expenses within sixty (60) days after the finalization of the adoption. Non-recurring adoption expenses shall not exceed a total of $1,500.00;
B. For non-travel related expenses, the packet will include: the DHS-1914, original invoice, a copy of the CFS-428-A: Adoption Assistance Agreement for State Funded Subsidy Payments or CFS-428-B: Adoption Assistance Agreement for Federal IV-E Funded Assistance, as applicable, and final adoption decree;
C. For travel-related expenses, the packet will include TR-1, receipts, a copy of the 428-A: Adoption Assistance Agreement for State Funded Subsidy Payments or CFS-428-B: Adoption Assistance Agreement for Federal IV-E Funded Assistance, and the final adoption decree; and
D. For payment of a special subsidy, the packet will include DHS-1914; original invoice; copy of the 428-A: Adoption Assistance Agreement for State Funded Subsidy Payments or CFS-428-B: Adoption Assistance Agreement for Federal IV-E Funded Assistance; and the final adoption decree.
The Adoption Subsidy Coordinator will:
A. Review, code, and forward each completed billing packet within ten (10) business days and forward to the Adoptions Manager for approval.
The Adoptions Manager will:
A. Forward the approved packet to the office of finance for payment within ten (10) working days of receipt from the subsidy coordinator.
PROCEDURE VIII-I8: Termination of Adoption Subsidy
The Family Service Worker will:
A. In the event a child with an adoption subsidy enters foster care:
1) Contact OCC and discuss a petition for child support in the amount of the full adoption subsidy; and
2) Explain to adoptive parents that any monies received by them on behalf of the child should be maintained by the adoptive parents until the issue is resolved by the Office of Child Support Enforcement.
B. If termination of parental rights occurs for a child whose parents are receiving an adoption subsidy:
1) Within five (5) business days, notify the Adoption Support Specialist that termination of parental rights has occurred for a child whose adoptive parents were receiving adoption subsidy payments; and
2) Provide a copy of the order terminating parental rights to the Adoption Support Specialist within ten (10) business days of receipt of the signed order.
The Adoption Specialist will:
A. Assess any change in the adoptive family's circumstances which would warrant termination of the adoption subsidy;
B. Determine if termination of the adoption subsidy is necessary;
C. Conduct a staffing with the Adoption Manager or designee; and
D. Provide written notification to the adoptive parent to explain the reason for the termination of the adoption subsidy and the internal review procedures.
The Adoption Support Specialist will:
A. Upon receipt of the copy of the court order terminating parental rights or other documentation indicating that the subsidy must be terminated as prescribed in the Adoption Assistance Agreement, send written notice to the adoptive parent(s) informing them of the Division's intent to terminate the subsidy fourteen (14) calendar days from receipt of the notice.
1) The notice will also inform the parent(s) of their right to appeal the termination and how to request an administrative hearing for such an appeal.
2) The notice will be sent via process server or via certified mail, restricted delivery with a returned receipt requested.
B. In the Division's information management system:
1) If adoption subsidy is terminated, change the subsidy ending date on the Adoption Subsidy Screen to stop the existing adoption subsidy;
2) If there are other adoptive siblings with existing adoption subsidies, end-date the adoptive child's involvement in the case by selecting the appropriate reason on the child's General Information Screen;
3) If there are no other adoptive siblings with existing adoption subsidies, close the adoption case on the Case Summary screen selecting the appropriate reason; and
4) Upon receipt of an order terminating parental rights, end date the subsidy on the Adoption Subsidy Screen and close the adoption case on the Case Summary Screen selecting the appropriate reason.

Credits

Amended Feb. 1, 2010; Aug. 3, 2009; Feb. 19, 2010; Renumbered and amended Nov. 25, 2010; June 1, 2011; Jan. 1, 2013; Aug. 21, 2013; June 29, 2014; Jan. 1, 2021; March 1, 2024.
[FN1]
So in original.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 016.15.4-VIII-I, AR ADC 016.15.4-VIII-I
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