Are differential fee schedules permitted, and what must be specified?

• A. Yes, differential fees are allowed; the parameters must be specified and equally applied.
• B. No differential fees allowed.
• C. Only allowed for certain cases.
• D. Only if fees are paid upfront.

Answer: (A)

Differential fee schedules are allowed, as long as the agency clearly defines the factors that justify charging different amounts and applies those factors consistently to all similarly situated cases. The key is transparency and uniformity. The agency must specify the parameters that cause a fee to differ—what criteria or conditions lead to a higher or lower rate (for example, level of service, case complexity, time to complete, or additional services provided)—and communicate these criteria in writing. Then that differential must be applied evenly across all clients who meet the same criteria, with no selective or discriminatory pricing. In practice, this means including the differential schedule in policy and contracts, making it accessible to clients, and keeping records to show that the same rules are used for everyone in the same category.