What is a Dependent Care Assistance Program (DCAP)?

A Dependent Care Assistance Program (DCAP) is a health insurance law in Pennsylvania that provides reimbursement for child care costs (up to a certain limit) to workers who have earned income and have a dependent care need. The program is designed to help working families afford the cost of care for their dependents. With DCAP, a family can use the pre-tax income to pay for daycare expenses. The money saved can be used to pay for additional expenses, such as housing or other necessities. The eligible dependents must be under the age of 13 and must be a qualifying child, a disabled spouse or a dependent parent. Eligible dependents are sometimes considered dependents for the purposes of the DCAP program even if they are not considered dependents for tax purposes. In addition, the parents must be employed or actively seeking employment in order for their children to qualify for care assistance. Employers must choose to offer the DCAP program and, if they do, then they must follow the rules and regulations—including rules about the types of expenses that are eligible and the maximum amount that can be paid out—set by the Pennsylvania Department of Public Welfare. In summary, the DCAP program is a health insurance law in Pennsylvania that provides reimbursement for child care costs to working families with eligible dependents. Employers must choose to offer the DCAP program and, if they do, then they must follow the rules and regulations set by the Pennsylvania Department of Public Welfare.

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What is a Dependent Care Assistance Program (DCAP)?

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