HOUSE BILL REPORT

SHB 1547

As Amended by the Senate

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

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (19)

      Signed by Representatives Appelwick, Chair; Crane, Vice Chair; Padden, Ranking Republican Member; Belcher, Brough, Dellwo, Hargrove, Inslee, P. King, Locke, R. Meyers, Moyer, H. Myers, Patrick, Schmidt, Scott, D. Sommers, Tate and Wineberry.

House Staff:Harry Reinert (786-7110)

AS PASSED HOUSE MARCH 8, 1989

BACKGROUND:

A court entering or modifying an order for child support in a dissolution proceeding must also order either or both parents to provide health insurance coverage if health insurance coverage is available through a parent's employer or union and the employer or union will pay all or a portion of the cost of the premium for the child.

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

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.

EFFECT OF SENATE AMENDMENTS:  The Substitute House Bill required health insurance coverage to be ordered as a part of any support order if the coverage is available.  The court was given authority to waive the requirement if ordering the coverage was not in the best interest of the child.  The Senate amendment requires coverage only if the cost of the coverage does not exceed 25 percent of the basic support obligation.  The court may order coverage that exceeds the 25 percent cost if this is in the best interest of the child.  The Senate amendment includes the state insurance program in the definition of health insurance.  The Senate amendment allows an employer or union 35 days instead of 20, to respond to a notice or order to enroll a child in a health insurance program.  The Senate amendment also makes several technical and grammatical corrections.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Dave Hogan, Department of Social and Health Service, Office of Support Enforcement; and Lonnie Johns Brown, National Organization for Women (with concerns).

House Committee - Testified Against:      David MacDonald, United Fathers of America.

House Committee - Testimony For:    Federal law requires states to assure that children subject to child support orders also have medical insurance coverage if available.  This bill will make certain that medical insurance provisions are enforceable.

House Committee - Testimony Against:      The bill could result in a significant increase in the financial burden on non-custodial parents.

VOTE ON FINAL PASSAGE:

      Yeas 96; Nay 1; Excused 1

Voting Nay: Representative Nealey

Excused:    Representative Hankins.