Chapter 5 : Section 21

Eligibility, Application, Review & Appeals

Procedures

The adoption subsidy program supports the Department's efforts to provide permanent adoptive placements for children who cannot be cared for by their birth parents to ensure that no foster child is considered unadoptable solely because of his or her specials needs.

Program Eligibility Criteria

Eligibility for Adoption Subsidy is determined by a Management Review.

Eligibility for Title IV-E funding of adoption assistance is determined by the Adoption Subsidy Title IV-E Eligibility Unit.

A child shall be eligible for adoption subsidy when:

• the child is in the care, custody, and control of the Department or an adoption agency licensed in Arizona, or was previously adopted and received Title IV-E or Arizona adoption subsidy;

• the child is legally free for adoption;

• the child cannot or should not be returned to the parent’s home;

• the child is a United States citizen or lawfully present in the United States;

• a reasonable but unsuccessful effort was made to place the child without an adoption subsidy, unless it was not in the child’s best interest to place the child with another family because of the child’s significant emotional ties with the prospective adoptive parent while in their care as a foster child;

• the child cannot be placed with adoptive parents without providing adoption assistance ;and

• the child is determined to have special needs as defined by Title IV-E of the Social Security Act, and A.R.S. §8-143 and A.R.S. §8-163 as follows:

  • physical, mental or developmental disability;

  • emotional disturbance;

  • high risk of physical or mental disease that may result in a debilitating condition;

  • high risk of developmental disability that may result in a debilitating condition;

  • age six or older at the time of application for adoption subsidy;

  • sibling relationship when such factor impedes the child’s adoptive placement;

  • racial or ethnic factors when such factor(s) impede the child’s adoptive placement; and

  • high risk of severe emotional disturbance if removed from the care of the child’s foster parent, permanent guardian or relative as diagnosed by a psychiatrist or psychologist.

Title IV-E Program Funding Eligibility

Eligibility for Title IV-E funding of adoption assistance is determined by the Adoption Subsidy Title IV-E Eligibility Unit. A child is Title IV-E eligible when:

• all of the Program Eligibility Criteria are met; and

• the child initially entered out-of-home placement through a judicial determination that it was contrary to the welfare of the child to remain in the home, or through a Voluntary Placement Agreement, and

  • the child who will be age two or older by the end of the federal fiscal year (September 30) in which their adoption subsidy agreement became effective is an applicable child, or

  • the child who is under age two at the end of the federal fiscal year (September 30) in which their adoption subsidy agreement became effective, and meets Title IV-E financial eligibility while in an out-of-home placement, is Title IV-E eligible but not under the applicable child category.

Applying for Adoption Subsidy

An application for adoption subsidy can be processed after the parental rights of all legal parents of the child have been terminated in Juvenile Court and the child is placed for adoption with a certified adoptive family or an approved relative, as evidenced by a signed Adoptive Placement Agreement, CSO-1055A.

An application for adoption subsidy must be filed on behalf of any Arizona child under the care of the Department or a licensed adoption agency 30 days prior to the finalization of the adoption. If the application is approved, the adoption subsidy agreement can be signed after the Petition to Adopt has been filed.

The Adoption Subsidy Agreement must be signed by the adoptive parents and the Adoption Subsidy Supervisor or designee prior to finalization of the adoption.

For children in the care and custody of private agencies, the Department's Adoption Subsidy Supervisor shall provide information and forms necessary to enable the agency to assist families in applying for subsidy on behalf of children in their care and custody.

The child's DCS Specialist or private agency adoption case manager will direct the adoptive family to complete the Adoptive Family Subsidy Application in the Provider portal in Guardian, and assist them with completing the Adoption Subsidy Rate Evaluation, CSO-1097B. Obtain DCS Specialist or Program Supervisor’s signature on the Adoption Subsidy Rate Evaluation, CSO-1079B;

If the adoptive family does not have access to the provider portal in Guardian:

• provide them with Adoptive Family Subsidy Application, CSO-1079A and the Adoption Subsidy Rate Evaluation, CSO-1079B;

• ensure the adoptive family completes and signs the documents;

• obtain DCS Specialist or Program Supervisor’s signature on the Adoption Subsidy Rate Evaluation, CSO-1079B;

• enter the information from the signed application into the Adoption Subsidy Application in Guardian;

• attach the application, rate evaluation, and all supporting documentation as artifacts to the Adoption Subsidy Application record;

• for private agency adoptions, include with the Adoptive Family Subsidy Application, CSO-1079A, a copy of the Assessment Service Plan, Documentation of Placement Decision, CSO-1081A, and the Documentation of Placement Decision: Private Agency, CSO-1083A; and

• enter current daily foster care rate on the Adoptive Family Subsidy Application, CSO-1079A and the date the rate was established.

The current foster care rate stated on the Adoptive Family Subsidy Application shall be in effect for at least three months prior to applying for adoption subsidy.

If subsidy is approved, Adoption Subsidy Agreement will be generated in Guardian and made available for the family’s signature. After the agreement is signed by the family, Adoption Subsidy supervisor will sign the document prior to the final adoption hearing.

• Assist the adoptive family in obtaining documentation that demonstrates the child meets the criteria of a special needs child, as follows:

  • Physical, mental or developmental disability, emotional disturbance, high risk of physical or mental disease and high risk of developmental disability. These conditions require documentation from a qualified professional with a diagnosis that meets the definitions described in the Adoptive Family Subsidy Application, CSO-1079A.

  • Racial or ethnic factor requires documentation which specifies why the child’s race or ethnicity is a barrier to adoptive placement.

  • Six (6) or more years old can be documented by a birth certificate.

  • Sibling relationship can be documented by court orders.

  • High risk of severe emotional disturbance if removed from the care of foster parents, Title 8 permanent guardian or relatives requires documentation that the condition has been diagnosed by a psychiatrist or psychologist and it is not a special need unless the foster care relationship existed before the foster adoption placement was made.

Documentation from the psychiatrist or psychologist can be provided by signing the application, by writing a letter or completing a form.

The DCS Specialist shall assist the family in obtaining documentation of each of the conditions to be covered by subsidy. Include reports and evaluations that identify diagnosis and prognosis. If treatment is in progress or imminent, include a treatment plan specifying number of sessions and participants. All documentation shall be within one year of the application.

Follow these requirements for documenting the child's diagnosed conditions or high risk of developing specific condition(s):

• Medical conditions must be diagnosed by one or more certified health service professionals approved by the Department.

• Dental conditions must be diagnosed by a dentist or an orthodontist, and be medically necessary.

• Mental/behavioral health conditions must be diagnosed by one or more psychiatrists, psychologists or certified mental health professionals with at least a Master's degree and be approved by the Department.

If a request for maintenance is applicable, the DCS Specialist or private agency case manager shall assist the family in identifying and listing, in the Adoptive Family Subsidy Application, the child’s conditions, behaviors, services, and family circumstances that support the maintenance payment request.

If a request for non-recurring adoption expenses is applicable, assist the family to identify and specify the expenses subject to reimbursement. Actual or estimated costs must be specified in the application. The amount of nonrecurring adoption expenses paid by the Department shall not exceed two thousand dollars ($2000) for each adoption petition. Except if good cause exists as determined by the Department.

Assist the family to identify community and other available resources and child benefits (such as Child Care, behavioral health services, or Social Security) that may be available to provide supports for the family post-adoption.

Based on documentation from professionals or the child’s circumstances (sibling relationship, racial or ethnic factors, etc.), determine the child’s qualifying special needs for adoption subsidy and provide that information on the application.

If the child’s special needs criteria is only met because of "high risk of severe emotional disturbance if removed from the care of the foster parents, permanent guardian or relatives", documentation must include a diagnosis by a psychiatrist or psychologist and documentation by the DCS Specialist, or private agency adoption case manager which must include the following information:

• child's identification as a member of the family of the foster parent, permanent guardian or relative;

• the foster parent, permanent guardian or relative identification of the child as a member of the family; and

• child's inability to establish significant emotional ties to another family if permanent placement with the foster parent, permanent guardian or relative is denied.

Determine what efforts were made to place the child without subsidy.

Prepare an assessment of significant emotional ties, including:

• age of the child;

• length of placement in the home;

• number of previous placements and disruptions;

• any history of bonding and attachment problems;

• any regression in development or medical condition which would likely occur if the child is removed from the home, and;

• a statement that the adoptive parents are unable to adopt without adoption subsidy.

Title 8 Permanent Guardians

Permanent Guardians who are appointed as adoptive parents are eligible to apply for adoption subsidy. The Permanent Guardian may submit the Permanent Guardian Adoption Subsidy Application once the termination of parental rights is completed.

The permanent guardian shall complete the Permanent Guardian Adoption Subsidy Application, and provide all required documents, as outlined on the application, in the Provider portal in Guardian. If termination of parental rights of the child took place during an open dependency, the Adoption Subsidy Specialist will request the termination orders.

The child who a permanent guardian seeks to adopt shall be eligible for adoption subsidy at the permanent guardianship subsidy rates established by the Department. The adoption subsidy application must be approved and signed by the permanent guardian prior to the final adoption hearing.

Application Review and Processing

The Adoption Subsidy Specialist and Subsidy Supervisor are responsible for reviewing the Adoptive Family Subsidy Application and supporting documentation. If the application is incomplete, the child's DCS Specialist or private agency adoption case manager must provide the missing information within 15 calendar days of the date of the notice. If missing information is not received, the record will be closed. An applicant whose record closed, may apply later but the applicant must apply, subsidy eligibility determined and an agreement signed by the adoptive parent(s) before the adoption is final.

The Adoption Subsidy Unit will work with the Adoption Subsidy Title IV-E Eligibility Unit for determination of the child's Title IV-E and Title XIX eligibility status.

Upon receipt and review of the Adoption subsidy application in the Guardian dashboard, the Adoption Subsidy Unit will forward documentation to the Management Review for determination of eligibility.

Adoption Subsidy benefits are effective after an application for adoption subsidy has been submitted, reviewed, approved, an adoption petition filed with the court, and the adoptive parent signed the agreement. The maintenance payments may begin in the following situations:

• If the adoption parents are licensed foster parents, the maintenance payments will start the date the adoption is granted.

• If the adoption parents are not licensed foster parents the maintenance payments are not effective until the adoptive parent(s) signs the Adoption Subsidy Agreement. Maintenance payments will begin the date the agreement is received by the adoption subsidy program.

• If an appeal of the parental rights is filed with the court, the petition to adopt cannot be filed until the appeal has been dismissed, unless the adoptive parents are licensed foster parents. DCS Specialist may contact the Adoption Subsidy Specialist to request initiation of maintenance payments. The Subsidy Program Manager or Program Administrator shall determine if maintenance payments may begin.

All other adoption subsidy benefits will start the date the adoption is granted.

Refer requests for Supplemental Adoption Subsidy to the Management Review for review and approval. An application for a new or increased subsidy may be filed after finalization only upon submission of documentation of an undiagnosed pre-existing condition.

Special services requests shall be submitted for a Management Review.

The Management Review Role

The Management Review consists of employees of the State of Arizona who have expertise in adoption subsidy policy and procedures. Whenever possible, there will be representation from the Department of Economic Security’s Division of Developmental Disabilities.

The Management Review Committee reviews all initial Adoption Subsidy applications and:

• approves eligibility if the child meets all criteria established in federal and state statutes, rules and regulations;

• approves the adoption subsidy maintenance rate based on federal and state statutes and established guidelines;

• approves pre-existing conditions to be listed on the agreement if properly documented;

• reviews requests for special services and approves if requests meet the criteria established in state statutes, rules, and regulations;

• reviews any request for adoption subsidy maintenance, special services or non-recurring expenses at the request of the Adoption Subsidy supervisor;

• reviews requests for continuing adoption subsidy or renegotiating adoption subsidy maintenance when an adoptive child is taken into temporary custody; and

• reviews requests for continuing adoption subsidy if it is determined that the adoptive parents may no longer be legally responsible for the support of the child or the adoptive parents may no longer be providing any support to the child.

Following the Management Review and approval of Adoption Subsidy, the Adoption Subsidy Agreement will be generated in Guardian and made available for the family’s signature.

After the agreement is signed by the family, Adoption Subsidy supervisor will sign the document prior to the final adoption hearing.

Once the adoption has finalized the DCS Specialist or private adoption agency case manager shall email the Adoption Subsidy Specialist on the next business day informing them of the date of final adoption. Medical coverage enrollment for the child(ren) who have been approved for adoption subsidy is not initiated until the adoption is finalized and the subsidy program receives notification of the final adoption.

Providing Notice of Appeal Rights

If subsidy is denied, send a denial letter to the adoptive parent(s), including:

• the reason for the denial;

• their right to appeal;

• the time frames for appeal; and

• how to initiate an appeal.

When adoption subsidy is denied, reduced or terminated, the Adoption Subsidy Specialist sends the adoptive parent written notice of the action and the parent's right to appeal. The notice contains the following information:

• an explanation of the action taken and the reason for the action;

• a statement of the adoptive parent’s right to appeal the action; and

• time frame for filing an appeal.

If the applicant or adoptive parent appeals an adverse action, the appeal request should include:

• name, address, and telephone number, and if applicable, email address of the person subject to the adverse action;

• information identifying the Adoption Subsidy Program as the initiator of an adverse action ;

• the issuance date of the notice or letter of adverse action;

• a description of what was denied, reduced, or terminated by the adverse action taken by Adoption Subsidy; and

• a statement explaining why the adverse action is unauthorized, unlawful, or an abuse of discretion.

Receipt of an appeal request

Upon receipt of an appeal request, the Adoption Subsidy Specialist or Supervisor will notify the Subsidy Program Manager and Program Administrator.

The Adoption Subsidy Specialist or Supervisor will provide all documents requested by the Assistant Attorney General and be available to testify if requested.

Include in the adoption file the family selection meeting notes or case notes that document efforts to place without adoption subsidy.

Documentation

DCS Specialist will ensure that the primary adoptive parent’s provider record and the child’s person record is updated in Guardian prior to initiating the Adoption Subsidy Application;

Document information from the assessment of the child’s significant emotional times in Notes and attach all documents as artifacts to the appropriate record in Guardian.

Send the child's adoptive parent(s) a copy of the agreement, along with a new parent packet including a letter of introduction and information about the Adoption Subsidy program.

The DCS Subsidy Specialist shall immediately notify the Adoption Subsidy Title IVE Eligibility Unit that the adoption finalized to begin medical enrollment for the child. The Adoption Subsidy Specialist shall enter the final adoption date in Guardian to alert the Title IV E Eligibility Unit.

Effective Date: February 1, 2021

Revision History: November 30, 2012, August 03, 2018, October 24, 2018, August 26, 2019