New Food Program Reimbursement Rates
August 2004 Provider Business News
The new Food Program reimbursement rates that will be in effect from July 1, 2004, to June 30, 2005, are as follows:
Tier I
Breakfast $1.04
Lunch/Supper $1.92
Snack $0.57
Tier II
Breakfast $0.39
Lunch/Supper $1.16
Snack $0.15
Tier I - Alaska
Breakfast $1.64
Lunch/Supper $3.11
Snack $0.92
Tier II - Alaska
Breakfast $0.59
Lunch/Supper $1.88
Snack $0.25
Tier I - Hawaii
Breakfast $1.20
Lunch/Supper $2.25
Snack $0.67
Tier II - Hawaii
Breakfast $0.44
Lunch/Supper $1.35
Snack $0.18
The rates represent a 5% increase from last year, the biggest yearly increase in many years.
If you use the Standard Meal Allowance Rate to calculate your food expenses, you must use the Tier I rate in effect at the beginning of the year. Therefore, use the above rates for your 2005 taxes. For tax year 2004, use the Tier I rates that were in effect at the beginning of 2004: $.99 per breakfast, $1.83 per lunch/supper and $.54 per snack served. If you currently receive the Tier II Food Program reimbursement rate, you still will use the Tier I rate when using the Standard Meal Allowance.
If you have additional questions regarding the Standard Meal Allowance Rate, visit
www.redleafinstitute.org. In the "Directory" menu, you'll find an entire section of the Web site devoted to the Standard Meal Allowance Rate. You can also contact Redleaf National Institute at 651-641-6675 or email
tom@redleafinstitute.org.
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