Financial Strain and Limited Reimbursement for Foster Parents in the United States: Addressing the Challenges. Foster care plays a crucial role in providing safe and nurturing environments for children who are unable to live with their birth families. However, despite their invaluable contribution to society, foster parents often face significant financial strain due to limited reimbursement in the United States. In this blog post, we will explore the challenges faced by foster parents and shed light on the importance of addressing these issues. By providing relevant data and citing reputable sources, we aim to raise awareness and encourage positive changes within the foster care system.
Challenges Faced by Foster Parents:
- Insufficient Reimbursement Rates: Foster parents often struggle to cover the basic needs and expenses associated with caring for a child in their home due to inadequate reimbursement rates. According to a report by the Children’s Bureau, the reimbursement rates vary widely across states, and in many cases, fail to meet the actual costs of raising a child. There is a $100 a quarter clothing allowance along with monthly reimbursement rates. In South Carolina ages 0-5 reimbursement rate is $605. That includes money to be used for diapers. Foster Parents do qualify for WIC so they do not have to pay for the babies formula, but often have to come out of their own pocket if they can not get into the WIC office soon enough. Children 6-12 rate is currently $708 a month. Children ages 13-21 rate is $747 which is only $24 a day. I know my kids sometimes can eat more than $24 a day. These rates will be going up soon. The new rates will take effect in July.
- Medical and Educational Expenses: Foster children may have special medical or educational needs, requiring additional financial resources. These expenses, such as therapy sessions, tutoring, or specialized equipment, can further strain the limited finances of foster parents. There is a critical shortage of pediatric psychiatrists and therapists. There are often long waiting lists to get in to see a therapist that takes Medicaid. Sometimes foster parents will come out of pocket to pay for much needed therapies. This can be a financial strain on foster parents.
- Limited Access to Benefits: Foster parents may face challenges in accessing benefits and resources available to biological parents, such as tax credits, health insurance, or child care subsidies. This disparity can exacerbate the financial burden on foster families. You can claim the children on your taxes, but the biological family will often claim the children first even though they are not in their care and custody. It can be troublesome to send in the paperwork showing that you had the child(ren) for 160 days or greater. SC Medicaid is free to the children and foster families, but many times there are limits on what doctors will take the insurance plan. Foster parents also qualify for ABC vouchers, but this can also prove to be difficult because sometimes waiting lists are long for slots that are available for the ABC voucher approved daycares. A foster parent does not qualify for the ABC voucher unless they work full time or go to school full time. It can’t be used for breaks away from the children.
- Lack of Flexibility in Reimbursement: Foster parents often find themselves facing unexpected costs that fall outside the scope of the limited reimbursement provided. This lack of flexibility in the system adds to the financial strain and hinders their ability to meet the unique needs of each child. Sometimes the foster care reimbursement is delayed and a foster parent has to come out of pocket for the child’s expenses. If a child is placed in your home on an emergency basis a lot of times they come with no or inadequate clothing. The foster parent has to go out and purchase even the basic supplies of underwear, pajamas, and toiletries. Many of us foster parents do have boxes of various sizes of clothing to help offset the cost of having to provide a completely new wardrobe.
Addressing the Issues:
- Increased Reimbursement Rates: It is essential for policymakers and child welfare agencies to reassess and adjust the reimbursement rates to reflect the actual costs of raising a child. By conducting comprehensive studies and consulting with foster parents, accurate reimbursement rates can be established. The current reimbursement rates will be going into effect July 1st. Children 0-5 will go up to $644. Ages 6-12 $752. Ages 13-21 $794. This raise in an effort to attract more foster parents because we are critically short. You can see the letter from Dawn Barton here. https://gem.godaddy.com/p/a974a61?pact=738519-174267799-11274158220-4e1c3f250374f456983addd56ba8c11575180617&fbclid=IwAR20oXNRjvO_HZvLS-2pKV3i80tl7t5uoOd9IrrlMQwch5e2aZe9X7PbzWM
- Comprehensive Support Services: Providing foster parents with access to comprehensive support services, such as counseling, respite care, and training programs, can help alleviate financial strain and improve overall well-being. This assistance would enable foster parents to better meet the needs of the children in their care.
- Collaboration with Community Organizations: Foster care agencies should collaborate with local community organizations, nonprofits, and businesses to create resource networks that offer assistance with clothing, school supplies, extracurricular activities, and other necessary items for foster children. The Upstate of South Carolina has a wonderful Adoption and Foster Care Resource Center at Grace Baptist Church in Taylors, SC. https://gracechurchsc.org/connect/culturallyengaged/foster-and-adopt-resource-center/
- Streamlined Benefit Access: Simplifying the process for foster parents to access benefits and resources, including tax credits and healthcare subsidies, can ensure that they receive the support they deserve. Clear guidelines and increased awareness of available benefits are crucial. I know it can be system overload when you are going through the foster parenting classes, but I think we should have a quick class on what resources are available. I think us seasoned foster parents should also be paired up with a mentor to assist with any questions the new foster parents may have. Fostering is HARD!
Conclusion: Financial strain and limited reimbursement pose significant challenges for foster parents in the United States. By addressing these issues and implementing comprehensive solutions, we can create a foster care system that provides adequate support for these dedicated individuals. Foster parents deserve recognition, appreciation, and appropriate financial resources to ensure that every child in foster care receives the care they need and deserve. It is our collective responsibility to advocate for change and create a more sustainable and supportive foster care system.
- Children’s Bureau. (2019). The AFCARS Report: Preliminary FY 2018 Estimates as of August 2019.
- Child Welfare Information Gateway. (2021). Foster Care Statistics 2021.
- FosterClub. (2020). National Foster Care Month: How Much Does Foster Care Pay in Your State?
- Dave Thomas Foundation for Adoption. (2019). Adoption-Friendly Workplace.
- Child Welfare Information Gateway. (2020). Foster Care Adoption.
- National Foster Parent Association. (n.d.). Foster Parent Bill of Rights.
