All states in the Union offer a payment to foster parents, but each state differs in the amount that they pay. The basic per diem or per day rate is set by the state, with different rates of pay for special services that the foster parents may provide. Payments for difficult to care for children, such as a wheelchair-bound child or a child with behavior problems, for example, are usually higher than for other children.
Expectations
Money paid to foster parents is expected to cover room and board, clothing, laundry, haircuts and personal items like deodorant and shampoo. Children in foster care qualify for free lunches at their local schools, although if the foster parents choose to, they can pay for lunches for the child. This would not be reimbursed by the county, but might make the child feel more like he belonged to the foster family.
Expectations
Children placed in a foster home are expected to be treated in the same manner as the biological children of the foster parents. The foster parents should purchase the same items as they buy for their children in school, such as school pictures. If they reward their children for good behavior, the foster child should also be rewarded. However, reimbursement for this treatment is not provided by foster care funds.
Medical Expenses
Medical needs are paid for by Medicaid. In a state where all Medicaid children belong to an HMO, the foster parents use the HMO card to purchase medications, doctor visits and eye and dental care. In states without an HMO, basic fee-for-service Medicaid pays the bills. If something unusual is needed, approval must be sought from the social worker for those needs to be covered. Over-the-counter medicines such as aspirin are not covered by Medicaid.
Reimbursable Items
Clothing purchased by the parents for the child is reimbursed to the parents. Other items may also be reimbursed based on the local social agency's regulations. Forms are usually typed or completed in ink and sent in to the social worker to be submitted for reimbursement. Some agencies require proof, such as store receipts. The process differs for each state. Advance requests for money are considered on a case by case basis.
Non-Reimbursable Items
Items purchased for the child such as beds, linens, toys and dishes are not reimbursed because they would normally be in the household anyway. Any items damaged by the child while in the home are also considered part of doing business and not reimbursed. However, should the damage be severe, the parents have the right to file criminal charges against the child.


