The federal Child Support Performance Incentive Act (CSPIA) of 1996 established certain federal goals for the child support program.  The federal goal for paternity establishment is known as the Paternity Establishment Percentage (PEP). States that fail to meet minimum thresholds for paternity establishment face financial penalties, while states that meet performance goals are rewarded with financial incentives.

CSPIA provides states with two options for calculating and reporting their PEP rates.  Each option has advantages and disadvantages that a state must consider when determining the method to use.  The two methods are respectively known as the “IV-D PEP” and the “statewide PEP.”  Both methods compare the number of children born out of wedlock with paternity established or acknowledged to the total number of children born out of wedlock. However, the IV-D PEP only counts children born out of wedlock within the IV-D agency’s caseload, while the statewide PEP considers all children born out of wedlock within the state.  Approximately half the states use the IV-D method, while the remaining states use the statewide method. 

A strong paternity establishment program has two major components: in-hospital paternity acknowledgment and paternity establishment within the IV-D agency. Each is extremely important, regardless of the PEP measure the state uses for federal incentive purposes. An effective in-hospital paternity program greatly benefits the rising number of children born out of wedlock each year, as parents are presented with an opportunity to voluntarily acknowledge paternity before the mother and child leave the hospital. 

States using the statewide PEP are especially dependent upon hospitals to obtain voluntary acknowledgements of paternity at the time of a child’s birth.  A consistently high level of hospital participation is necessary to meet federal goals, but achieving that can be challenging.  Hospital staff may initially perceive voluntary acknowledgments as an inconsequential administrative task, rather than an important priority for the well-being of the child.  This initial perception can be changed, but it takes a focused effort to engage hospital staff in the process.  Once nurses and medical records personnel understand the difference they can make in the lives of children, they can become outstanding advocates for the voluntary acknowledgment program. A contractor with the right experience and expertise can help states implement and operate a successful in-hospital voluntary acknowledgment program.

Some states are interested in moving from one method of PEP reporting to the other to avoid penalties or maximize incentives.  In fact, many states are finding the IV-D PEP to be advantageous because the calculation only counts children within the IV-D agency’s caseload and does not depend on hospital participation or data gathered by state vital records agencies.  However, before a state can transition from one PEP method to another, the state must pass a comprehensive federal data reliability audit to ensure the data used for the new PEP calculation is accurate and complete.  A qualified contractor can provide an objective assessment of a state’s paternity establishment efforts,  recommend potential improvements, and analyze the feasibility of adopting a different PEP method.

Whether it is spearheading an in-hospital paternity acknowledgment program, preparing for a data reliability audit, or conducting an evaluation of state’s paternity establishment program, YoungWilliams can help. We have comprehensive knowledge of best practices and lessons learned in the area of paternity establishment and keep abreast of new developments.  From consulting through operations, our subject matter experts can assist you in identifying opportunities for improvement and designing a cost-effective solution that will meet your needs.

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