Brief Description: Using wage assignment orders to enforce health insurance coverage.

Sponsors: Representatives Wallace, Williams, Pettigrew and Hunt.

Hearing Date: 2/23/05

Staff: Kara Durbin (786-7133).

Background:

The Division of Child Support (DCS) is the state agency that administers state and federal child support laws. The DCS enforces all current and back support accrued under a valid child support order. The DCS can use a number of collection remedies, including a wage assignment order. A wage assignment order, also known as a wage withholding, is a mechanism that allows the DCS to deduct from a person's income the amount owed for current or back child support.

All support orders established as part of a dissolution proceeding must contain a provision regarding medical support. The medical support provision must require that either or both parents maintain or provide health insurance coverage for any dependent child if it is available through employment. In addition, the order should address each parent's responsibility to pay for uncovered medical expenses. In the absence of such a provision in the order, the responsibility to pay for uncovered medical expenses belongs to the residential parent.

If there is a child support order with a medical provision, the DCS will enforce medical support along with child support enforcement. However, the DCS does not collect uninsured medical expenses, unless the non-custodial parent secures a court ordered judgment for payment.

Summary of Bill:

If a parent entitled to medical support requests enforcement by the DCS, the DCS is required to collect, through a wage assignment order, the portion of uninsured medical expenses or deductible owed by the other parent.

Appropriation: None.

Fiscal Note: Requested on February 10, 2005.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.