SENATE BILL REPORT

SB 5665

BYSenators Pullen and Talmadge; by request of Department of Social and Health Services

Providing for medical support enforcement.

Senate Committee on Law & Justice

Senate Hearing Date(s):February 14, 1989; February 24, 1989

Majority Report:  That Substitute Senate Bill No. 5665 be substituted therefor, and the substitute bill do pass.

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

Senate Staff:Richard Rodger (786-7461)

                  February 27, 1989

AS REPORTED BY COMMITTEE ON LAW & JUSTICE, FEBRUARY 24, 1989

BACKGROUND:

The current law provides that a responsible parent can only be required to provide health insurance if the employer or other organization pays all or part of the premium.  This provision is more restrictive than the federal requirement.  There is no provision allowing the Office of Support Enforcement (OSE) to enforce health insurance provisions.

The current state laws do not conform to the federal requirements and subject the state to penalties for noncompliance.  Federal auditors have unofficially informed OSE that our state does not meet the federal standards for medical support enforcement. 

SUMMARY:

All support orders require one or both parents to maintain or provide health insurance for a dependent child if the coverage is available, or becomes available, through the parent's employment or union.  The cost of the coverage under this section is limited to 50 percent of the parent's basic obligation of support. 

The court may require a parent to provide health insurance coverage, the cost of which exceeds 50 percent of the parent's basic support obligation, if the coverage is in the best interests of the child.

Health insurance shall be maintained until (1) further order of the court, (2) the child is emancipated, or (3) the coverage is no longer available through the employer or union and no conversion privilege is offered.

Support orders shall provide that the obligee may seek direct enforcement of the insurance requirement through the obligor's employer without notice.  If the obligor fails to obtain the insurance, the obligee or OSE may notify the employer to enroll the child and deduct the premium from the obligee's wages.  Failure to provide health insurance coverage, or to explain why coverage cannot be provided, shall subject an employer to a $1,000 fine.

If the insurance does not reasonably provide coverage for the children because of geographic location or other limitations, the other parent may elect to obtain reasonable coverage.  The responsible parent shall be liable for the cost of the coverage.

Modification of an order or decree, to provide for health insurance coverage, does not require a substantial change of circumstances.

Any law dealing with support enforcement which is in conflict with the federal prerequisites for federal funding is declared inoperative.

EFFECT OF PROPOSED SUBSTITUTE:

Technical and clarifying changes are made.

The definitions of "health insurance coverage" and "insurer" are expanded.

The employer penalty provision is clarified.  The employer is given 45 days to respond to an enrollment request.

Wage assignment orders remain in effect until the court or the Washington State Support Registry Office notifies the employer.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Dave Hogan, Department of Social and Health Services (pro); Lonnie Johns-Brown, Washington State National Organization for Women (pro); Joan Gaumer, Safeco Insurance Company (pro)