Chairperson Henderson, members of the committee, thank you for the opportunity to testify. My name is Anne Gunderson, and I am a Senior Policy Analyst at the DC Fiscal Policy Institute (DCFPI) and a member of the Under 3 DC Coalition (U3DC). DCFPI is a non-profit organization that shapes racially-just tax, budget, and policy decisions by centering Black and brown communities in our research and analysis, community partnerships, and advocacy efforts to advance an antiracist, equitable future.
Health insurance is a critical component of compensation for early educators, as envisioned in the Birth-to-Three for All DC Law. HealthCare4ChildCare (HC4CC) makes free or low-cost health care coverage available to child care workers who live in the District and non-District child care workers whose employers purchase coverage through the DC Health Benefit Exchange (DCHBX). To date, more than 1,800 educators and their families have benefited from HC4CC, many of whom are receiving employment-based health care for the first time.[1] Many educators have testified before the council about how life-changing this program has been for them, and every dollar DC invests in HC4CC nets over a dollar in premium value, making it a beneficial program for the entire District.[2]
Yet, DCHBX recently instituted a wait list for new child care facilities’ enrollment in HC4CC coverage due to insufficient funding. Prior to instituting the wait list, DCHBX enrolled 79 percent (222 total facilities) of eligible child care facilities in HC4CC, a great accomplishment in just a few years. There are almost 60 facilities across the District without access to group coverage through HC4CC and subject to the wait list unless more funding becomes available or other facilities drop out. DCHBX successfully extended HC4CC to child care facilities in every ward but participation varies considerably. For example, Wards 7 and 8 have the smallest percentage of facilities enrolled in HC4CC group coverage.[3]This gap will persist if the budget does not allow more child care facilities to enroll in HC4CC.
To fulfill the promise of “parity” made in the Birth-to-Three for All DC Act, the Pay Equity Fund (PEF) should, at minimum, include a comparable salary scale to DCPS teachers and health care benefits.[4] Higher pay and affordable health care work hand in hand to fairly compensate early educators. Restricting access to health care benefits as part of the compensation program would not only violate the spirit of the Birth-to-Three law, but it could cause some workers to be worse off in the end if their total wage increase fails to outstrip any increased cost in health care coverage that they face due to higher wages. Higher costs could be a result of losing Medicaid eligibility or facing a higher premium through employer-sponsored insurance or through the marketplace.
DCFPI is grateful that DCHBX continues to work diligently to ensure that educators living in DC who are at risk of losing Medicaid coverage due earning higher salaries are pulled into HC4CC for individual coverage. We recognize that their commitment to creating a well-designed health care program is one reason why the PEF has been so effective at attracting more educators to early childhood classrooms, increasing the retention of qualified educators, and expanding access to high-quality, affordable care to District families.[5] Their deep commitment to provide coverage to as many facilities, educators, and their families as possible has allowed this program to thrive. DCHBX has also thoughtfully engaged the community and facilities via outreach events and an advisory council, engaged the U3DC Coalition in policy decisions, and kept us updated on critical administrative changes, pulling us in as partners to expand the reach and efficacy of HC4CC.
Yet, the limited budget for HC4CC is now stymieing progress towards the ultimate goal of early educators having access to health care when they choose to work in any District child care facility. We look forward to continuing to work with DCHBX to ensure that they have the resources they need to continue this important work.
Thank you, Councilmember Henderson, for your steadfast support of the Pay Equity Fund and HealthCare4ChildCare and thank you for the opportunity to testify. I am happy to take questions.
[1] Mila Koffman, “Presentation to the Early Childhood Educator Compensation Task Force,” DC Health Benefit Exchange Authority, January 2025.
[2] Mila Koffman, “Presentation to the Early Childhood Educator Compensation Task Force,” DC Health Benefit Exchange Authority, January 2025.
[3] DCFPI analysis of FY 2023 OSSE Performance Oversight Hearing responses and data from the Presentation to the Early Childhood Educator Compensation Task Force, January 2025.
[4] The Birth-to-Three for All DC law defines parity for early educators as compensation equivalent to the average base salary and fringe benefits of an elementary school teacher employed by District of Columbia Public Schools with the equivalent role, credentials, and experience.
[5] Under 3 DC, “Public Investments in Early Childhood Education: Good for Educators, Families and the Economy,” November 2024.