Must States use the current market rate survey or alternative methodology to set rates?

Yes, the State must use its current, most recent market rate survey or alternative methodology to establish their payment rates.  The new law indicates that the State must set payment rates “in accordance with the results of the market rate survey or alternative methodology conducted pursuant to clause (i).”  Clause (i) indicates that the market rate survey or alternative methodology must be developed and conducted no earlier than two years before the date of State Plan submission.  This effectively requires States to conduct a new market rate survey or alternative methodology and re-evaluate their existing payment rates at least every three years to determine whether rates continue to provide equal access based on present market conditions, which may change over time due to shifts local markets or inflation.  Rates should also be examined and updated as the State deems appropriate to keep pace with inflation. In the CCDF Plan, States will be asked to provide the date of its most recent market rate survey or alternative methodology.

(Reference: Section 658E(c)(4)(B)(iii)(I))