SENATE BILL REPORT

SHB 1547

BYHouse Committee on Judiciary (originally sponsored by Representatives Schmidt, Appelwick, Moyer, Brough, Van Luven and Schoon; by request of Department of Social and Health Services)

Providing for medical support enforcement.

House Committe on Judiciary

Senate Committee on Law & Justice

Senate Hearing Date(s):March 21, 1989; March 28, 1989; March 29, 1989

Majority Report:  Do pass as amended.

      Signed by Senators Pullen, Chairman; McCaslin, Vice Chairman; Hayner, Nelson, Newhouse, Niemi, Rasmussen, Rinehart, Talmadge, Thorsness. 

Senate Staff:Richard Rodger (786-7461)

                  March 29, 1989

AS REPORTED BY COMMITTEE ON LAW & JUSTICE, MARCH 29, 1989

BACKGROUND:

If an employer or union offers health insurance coverage and will pay all or a portion of the premium for a child, a court entering or modifying an order for child support in a dissolution proceeding must order that insurance be provided by one or both parents.

An order of child support may generally be modified only upon a showing of a substantial change of circumstances.  An order of support may be amended without a showing of a substantial change in circumstances in cases where there is a severe hardship, to adjust the amount of support because the child is in a different age category for purposes of a schedule, to extend support through high school, or to add an automatic adjustment of support provision.

SUMMARY:

A court entering or modifying an order for child support in a dissolution proceeding, or in a proceeding under the Uniform Parentage Act, must order either or both parents to provide health insurance coverage.  The department when it administratively establishes or modifies a support obligation must also require the provision of health insurance coverage.  The coverage must be provided if the coverage is or becomes available to the parent through the parent's employer or union.  If it is in the best interests of the child the court may decide not to order health insurance coverage.  The support order must contain a statement advising the parent of the obligation to provide health insurance coverage and that the obligation may be directly enforced if proof of insurance is not provided within 20 days.

Health insurance must be maintained until further order of the court or until the child is emancipated.  The obligation ceases if health insurance coverage is no longer available through the parent's employer or union and no conversion privileges exist following termination of employment.

A parent may be required to show proof of coverage to the other parent or, if support payments are to be made through the support registry, to the department.

An order of support may be modified to provide health insurance coverage for a child or to enforce, modify, or clarify an existing order of health insurance coverage entered prior to June 7, 1984 without showing a substantial change of circumstances.

An order to provide health insurance coverage shall include a statement that the order may be directly enforced by service of the court order on the parent's employer or union.  If the order does not contain notice of direct enforcement, a written notice of intent to enforce the order must be served on the parent obligated to provide health insurance coverage.  Upon service of the order on the employer or union, the child to be covered must be enrolled in the health care or insurance plan and premiums deducted from the obligated parent's wages.  Upon service of the notice of intent to obtain health care coverage, the obligated parent has 20 days to file an application for an adjudicative proceeding or proof that the parent has applied for or obtained coverage for the child.

An employer or union is subject to a maximum fine of $1,000 for failure to enroll a child in a health care plan or to explain why the coverage is not available.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

SUMMARY OF PROPOSED SENATE AMENDMENTS:

Technical corrections are made and the state employees insurance program is added to the definition of health insurance coverage.

The court shall require either or both parents to provide health insurance coverage, if the coverage is available, or becomes available, through their employer or union and the cost of the coverage does not exceed 25 percent of the basic child support obligation.  The court may order health insurance coverage which exceeds the 25 percent limit, if the coverage is in the child's best interest.

Employers and unions are given 35 days to respond to an order requiring health insurance coverage or a notice of enrollment.  The employer or union which fails or refuses to respond is liable for a fine of up to $1,000.

Senate Committee - Testified: Dave Hogan, DSHS (pro); Jean Irlbeck, DSHS (pro)