Bill Text: IA HF2414 | 2017-2018 | 87th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: A bill for an act relating to the provision of medical support in child support actions, and including effective date provisions. (Formerly HSB 629.) Effective 10-1-18.
Spectrum: Committee Bill
Status: (Passed) 2018-04-11 - Signed by Governor. H.J. 780. [HF2414 Detail]
Download: Iowa-2017-HF2414-Introduced.html
Bill Title: A bill for an act relating to the provision of medical support in child support actions, and including effective date provisions. (Formerly HSB 629.) Effective 10-1-18.
Spectrum: Committee Bill
Status: (Passed) 2018-04-11 - Signed by Governor. H.J. 780. [HF2414 Detail]
Download: Iowa-2017-HF2414-Introduced.html
House File 2414 - Introduced HOUSE FILE BY COMMITTEE ON HUMAN RESOURCES (SUCCESSOR TO HSB 629) A BILL FOR 1 An Act relating to the provision of medical support in child 2 support actions, and including effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5326HV (4) 87 pf/rh PAG LIN 1 1 Section 1. Section 252C.1, subsection 6, Code 2018, is 1 2 amended to read as follows: 1 3 6. "Medical support" meanseither the provision of 1 4 coverage under a health benefit plan, including a group or 1 5 employment=related or an individual health benefit plan, or 1 6 a health benefit plan provided pursuant to chapter 514E, to 1 7 meet the medical needs of a dependent and the cost of any 1 8 premium required by a health benefit plan, or the payment to 1 9 the obligee of a monetary amount in lieu of providing coverage 1 10 under a health benefit plan, either of which is an obligation 1 11 separate from any monetary amount of child support ordered 1 12 to be paid. Medical support which consists of payment of 1 13 a monetary amount in lieu of a health benefit plan is also 1 14 an obligation separate from any monetary amount a parent is 1 15 ordered to pay for uncovered medical expenses pursuant to the 1 16 guidelines established pursuant to section 598.21Bmedical 1 17 support as defined in section 252E.1. 1 18 Sec. 2. Section 252E.1, Code 2018, is amended to read as 1 19 follows: 1 20 252E.1 Definitions. 1 21 As used in this chapter, unless the context otherwise 1 22 requires: 1 23 1. "Accessible" means any of the following, unless otherwise 1 24 provided in the support order: 1 25 a. The health benefit plan does not have service area 1 26 limitations or provides an option not subject to service area 1 27 limitations. 1 28 b. The health benefit plan has service area limitations and 1 29 the dependent lives within thirty miles or thirty minutes of a 1 30 network primary care provider. 1 31 2. "Basic coverage" means health care coverageprovided 1 32 under a health benefit planthat at a minimum provides coverage 1 33 for emergency care, inpatient and outpatient hospital care, 1 34 physician services whether provided within or outside a 1 35 hospital setting, and laboratory and x=ray services. 2 1 3. "Cash medical support" means a monetary amount that 2 2 a parent is ordered to pay to the obligee in lieu of that 2 3 parent providing health care coverage, which amount is five 2 4 percent of the gross income of the parent ordered to pay the 2 5 monetary amount or, if the child support guidelines established 2 6 pursuant to section 598.21B specifically provide an alternative 2 7 income=based numeric standard for determining the amount, 2 8 the amount determined by the standard specified by the child 2 9 support guidelines. "Cash medical support" is an obligation 2 10 separate from any monetary amount a parent is ordered to pay 2 11 for uncovered medical expenses pursuant to the guidelines 2 12 established pursuant to section 598.21B. 2 133.4. "Child" means a person for whom child or medical 2 14 support may be ordered pursuant to chapter 234, 239B, 252A, 2 15 252C, 252F, 252H, 252K, 598, 600B, or any other chapter of the 2 16 Code or pursuant to a comparable statute of another state or 2 17 foreign country. 2 184.5. "Department" means the department of human services, 2 19 which includes but is not limited to the child support recovery 2 20 unit, or any comparable support enforcement agency of another 2 21 state. 2 225.6. "Dependent" means a child, or an obligee for whom a 2 23 court may order health care coverageby a health benefit plan2 24 pursuant to section 252E.3. 2 256.7. "Enroll" means to be eligible for and covered by a 2 26 health benefit plan. 2 277.8. "Health benefit plan" means any policy or contract 2 28 of insurance, indemnity, subscription or membership issued by 2 29 an insurer, health service corporation, health maintenance 2 30 organization, or any similar corporation,or organization, any 2 31 public coverage, oraany self=insured employee benefit plan, 2 32 for the purpose of covering medical expenses. These expenses 2 33 may include but are not limited to hospital, surgical, major 2 34 medical insurance, dental, optical, prescription drugs, office 2 35 visits, or any combination of these or any other comparable 3 1 health care expenses. 3 2 9. "Health care coverage" or "coverage" means providing and 3 3 paying for the medical needs of a dependent through a health 3 4 benefit plan. 3 58.10. "Insurer" means any entitywhich, including a health 3 6 service corporation, health maintenance organization, or any 3 7 similar corporation or organization, or an employer offering 3 8 self=insurance, that provides a health benefit plan, but does 3 9 not include an entity that provides public coverage. 3 109.11. "Medical support" means either the provision ofa3 11 healthbenefit plan, including a group or employment=related 3 12 or an individual health benefit plan, or a health benefit plan 3 13 provided pursuant to chapter 514E, to meet the medical needs 3 14 of a dependent and the cost of any premium required by a health 3 15 benefit plan,care coverage or the paymentto the obligeeof 3 16a monetary amount in lieu of a health benefit plan, either 3 17 of which is an obligation separate from any monetary amount 3 18 of childcash medical supportordered to be paid.Medical 3 19 support"Medical support" is not alimony.Medical support which 3 20 consists of payment of a monetary amount in lieu of a health 3 21 benefit plan is also an obligation separate from any monetary 3 22 amount a parent is ordered to pay for uncovered medical 3 23 expenses pursuant to the guidelines established pursuant to 3 24 section 598.21B.3 2510.12. "National medical support notice" means a notice 3 26 as prescribed under 42 U.S.C. {666(a)(19) or a substantially 3 27 similar notice, that is issued and forwarded by the department 3 28 in accordance with section 252E.4 to enforcemedical support 3 29the health care coverage provisions of a support order. The 3 30 national medical support notice is not applicable to a provider 3 31 of public coverage. 3 3211.13. "Obligee" means a parent or another natural person 3 33 legally entitled to receive a support payment on behalf of a 3 34 child. 3 3512.14. "Obligor" means a parent or another natural person 4 1 legally responsible for the support of a dependent. 4 213.15. "Order" means a support order entered pursuant to 4 3 chapter 234, 252A, 252C, 252F, 252H, 252K, 598, 600B, or any 4 4 other support chapter, or pursuant to a comparable statute of 4 5 another state or foreign country, or an ex parte order entered 4 6 pursuant to section 252E.4. "Order" also includes a notice of 4 7 such an order issued by the department. 4 814.16. "Plan administrator" means the employer or sponsor 4 9 that offers the health benefit plan or the person to whom the 4 10 duty of plan administrator is delegated by the employer or 4 11 sponsor offering the health benefit plan, by written agreement 4 12 of the parties. "Plan administrator" does not include a 4 13 provider of public coverage. 4 1415.17. "Primary care provider" means a physician who 4 15 provides primary care who is a family or general practitioner, 4 16 a pediatrician, an internist, an obstetrician, or a 4 17 gynecologist; an advanced registered nurse practitioner; or a 4 18 physician assistant. 4 19 18. "Public coverage" means health care benefits provided by 4 20 any form of federal or state medical assistance, including but 4 21 not limited to benefits provided under chapter 249A or 514I, 4 22 or under comparable laws of another state, foreign country, or 4 23 Indian nation or tribe. 4 24 19. "Unit" or "child support recovery unit" means unit as 4 25 defined in section 252B.1. 4 26 Sec. 3. Section 252E.1A, Code 2018, is amended to read as 4 27 follows: 4 28 252E.1A Establishing and modifying orders for medical 4 29 support. 4 30 1. This section shall apply to all initial or modified 4 31 orders for support entered under chapter 234, 252A, 252C, 252F, 4 32 252H, 598, 600B, or any other applicable chapter. If an action 4 33 to establish or modify an order for support is initiated by the 4 34 child support recovery unit, section 252E.1B shall also apply. 4 351.2. An order or judgment that provides for temporary or 5 1 permanent support for a child shall include a provision for 5 2 medical support for the child as provided in this section. 5 32.3. The court shall order as medical support for the 5 4 child health care coverage if a health benefit planifother 5 5 than public coverage is available to either parent at the time 5 6 the order is entered or modified. A health benefit plan is 5 7 available if the plan is accessible and the cost of the plan is 5 8 reasonable. 5 9 a. The cost of a health benefit plan is considered 5 10 reasonable, and such amount shall be stated in the order, if 5 11 one of the following applies: 5 12 (1) The premium cost for a child to the parent ordered 5 13 to providethe plancoverage does not exceed five percent of 5 14 that parent's gross income or the child support guidelines 5 15 established pursuant to section 598.21B specifically provide an 5 16 alternative income=based numeric standard for determining the 5 17 reasonable cost of the premium, in which case the reasonable 5 18 cost of the premium as determined by the standard specified by 5 19 the child support guidelines shall apply. 5 20 (2) The premium cost for a child exceeds the amount 5 21 specified in subparagraph (1) and that parent consents or does 5 22 not object to entry of that order. 5 23 b. For purposes of this section, "gross income" has the same 5 24 meaning as gross income for calculation of support under the 5 25 guidelines established under section 598.21B. 5 26 c. For purposes of this section, "the premium cost for 5 27 a child to the parent" ordered to providethe plancoverage 5 28 means the amount of the premium cost for family coverage to 5 29 the parent which is in excess of the premium cost for single 5 30 coverage, regardless of the number of individuals covered under 5 31 the plan.However, this paragraph shall not be interpreted to 5 32 reduce the amount of the health insurance premium deduction 5 33 a parent may be entitled to when calculating the amount of a 5 34 child support obligation under Iowa court rule 9.5 of the child 5 35 support guidelines.6 1 d. For purposes of this section, "family coverage" means 6 2 coverage that covers multiple individuals and covers or could 6 3 cover the child or children subject to the child support order. 6 43.4. If a health benefit plan other than public coverage 6 5 is not available to either parent at the time of the entry 6 6 of the order, and the custodial parent does not have public 6 7 coverage for the child, the court shall ordera reasonable 6 8 monetarycash medical support in an amountin lieu of a health 6 9 benefit plan,whichamountshall be stated in the order.For 6 10 purposes of this subsection, a reasonable amount means five 6 11 percent of the gross income of the parent ordered to provide 6 12 the monetary amount for medical support or, if the child 6 13 support guidelines established pursuant to section 598.21B 6 14 specifically provide an alternative income=based numeric 6 15 standard for determining the reasonable amount, a reasonable 6 16 amount means the amount as determined by the standard specified 6 17 by the child support guidelines.This subsection shall not 6 18 apply in any of the following circumstances: 6 19 a. If the parent's monthly support obligation established 6 20 pursuant to the child support guidelines prescribed by the 6 21 supreme court pursuant to section 598.21B is the minimum 6 22 obligation amount. If this paragraph applies, the court shall 6 23 order the parent to provideahealthbenefit plancare coverage 6 24 when a plan becomes available for which there is no premium 6 25 cost for a child to the parent. 6 26 b. Ifsubsection 7, paragraph "d", "e", or "f" appliesthe 6 27 noncustodial parent does not have income which may be subject 6 28 to income withholding for collection of cash medical support at 6 29 the time of the entry of the order. If this paragraph applies, 6 30 the court shall order the noncustodial parent to provide health 6 31 care coverage when a health benefit plan becomes available at 6 32 a reasonable cost, and the order shall specify the amount of 6 33 the reasonable cost as specified in subsection 3, paragraph "a", 6 34 subparagraph (1). 6 35 c. If the noncustodial parent is receiving assistance or 7 1 is residing with any child receiving assistance as provided 7 2 in section 252E.2A, subsection 1, paragraph "c", subparagraph 7 3 (3) or (4). If this paragraph applies, the court shall order 7 4 the noncustodial parent to provide health care coverage when 7 5 a health benefit plan becomes available for which there is no 7 6 premium cost for a child to the parent. 7 74.5. If a health benefit plan other than public coverage 7 8 is not available to either parent at the time of the entry of 7 9 the order, and the custodial parent has public coverage for the 7 10 child, the courtordersshall order the custodial parent to 7 11 provideahealthbenefit plan under subsection 2care coverage, 7 12 and the courtmay alsoshall order the noncustodial parent to 7 13provide a reasonable monetarypay cash medical support, which 7 14 amountin lieu of a health benefit planshall be stated in the 7 15 order, unless an exception under subsection 4 applies.For 7 16 purposes of this subsection, a reasonable monetary amount means 7 17 an amount not to exceed the lesser of a reasonable amount as 7 18 described in subsection 3, or the premium cost of coverage for 7 19 the child to the custodial parent as described in subsection 7 20 2, paragraph "c".7 215.6. Notwithstanding the requirements of this section, the 7 22 court may order provisions in the alternative to those provided 7 23 in this section to address the health care needs of the child 7 24 if the court determines that extreme circumstances so require 7 25 and documents the court's written findings in the order. 7 266.7. An order, decree, or judgment entered beforeJuly 1, 7 27 2009October 1, 2018, that provides for the support of a child 7 28 may be modified in accordance with this section. 7 297. If the child support recovery unit is providing services 7 30 under chapter 252B and initiating an action to establish or 7 31 modify support, all of the following shall also apply:7 32a. If a health benefit plan is available as described in 7 33 subsection 2 to the noncustodial parent, the unit shall seek an 7 34 order for the noncustodial parent to provide the plan.7 35b. If a health benefit plan is available as described 8 1 in subsection 2 to the custodial parent and not to the 8 2 noncustodial parent, the unit shall seek an order for the 8 3 custodial parent to provide the plan.8 4c. If a health benefit plan is available as described in 8 5 subsection 2 to each parent, and if there is an order for joint 8 6 physical care, the unit shall seek an order for the parent 8 7 currently ordered to provide a health benefit plan to provide 8 8 the plan. If there is no current order for a health benefit 8 9 plan for the child, the unit shall seek an order for the parent 8 10 who is currently providing a health benefit plan to provide the 8 11 plan.8 12d. If a health benefit plan is not available, and the 8 13 noncustodial parent does not have income which may be subject 8 14 to income withholding for collection of a reasonable monetary 8 15 amount in lieu of a health benefit plan at the time of the 8 16 entry of the order, the unit shall seek an order that the 8 17 noncustodial parent provide a health benefit plan when a plan 8 18 becomes available at reasonable cost, and the order shall 8 19 specify the amount of reasonable cost as defined in subsection 8 20 2.8 21e. If a health benefit plan is not available, and the 8 22 noncustodial parent is receiving assistance or is residing with 8 23 any child receiving assistance as provided in section 252E.2A, 8 24 subsection 1, paragraph "c", subparagraph (3) or (4), the unit 8 25 shall seek an order that the noncustodial parent shall provide 8 26 a health benefit plan when a plan becomes available for which 8 27 there is no premium cost for a child to the parent.8 28f. This section shall not apply to chapter 252H, subchapter 8 29 IV.8 30 Sec. 4. NEW SECTION. 252E.1B Establishing and modifying 8 31 orders for medical support == actions initiated by child support 8 32 recovery unit. 8 33 1. If the child support recovery unit is initiating an 8 34 action to establish or modify support, this section shall apply 8 35 in addition to the provisions of section 252E.1A. 9 1 2. The unit shall apply the following order of priority when 9 2 the unit enters or seeks an order for medical support: 9 3 a. If the custodial parent is currently providing coverage 9 4 for the child under a health benefit plan other than public 9 5 coverage, and the plan is available as described in section 9 6 252E.1A, subsection 3, the unit shall enter or seek an order 9 7 for the custodial parent to provide coverage. 9 8 b. If the noncustodial parent is currently providing 9 9 coverage for the child under a health benefit plan other than 9 10 public coverage, and the plan is available as described in 9 11 section 252E.1A, subsection 3, the unit shall enter or seek an 9 12 order for the noncustodial parent to provide coverage. 9 13 c. If a health benefit plan other than public coverage is 9 14 available as described in section 252E.1A, subsection 3, to the 9 15 custodial parent, the unit shall enter or seek an order for the 9 16 custodial parent to provide coverage. 9 17 d. If a health benefit plan other than public coverage is 9 18 available as described in section 252E.1A, subsection 3, to the 9 19 noncustodial parent, the unit shall enter or seek an order for 9 20 the noncustodial parent to provide coverage. 9 21 e. If a health benefit plan other than public coverage is 9 22 not available to either parent, and the custodial parent has 9 23 public coverage for the child, the unit shall enter or seek an 9 24 order for the custodial parent to provide health care coverage 9 25 and shall enter or seek an order for the noncustodial parent to 9 26 pay cash medical support. However, if any of the circumstances 9 27 described in section 252E.1A, subsection 4, paragraph "a", 9 28 "b", or "c" is met, the unit shall enter or seek an order as 9 29 specified by the applicable paragraph. 9 30 3. Notwithstanding subsection 2, if there is an order for 9 31 joint physical care for the child and the parties subject to 9 32 the support order, the unit shall apply the following order of 9 33 priority when the unit enters or seeks an order for medical 9 34 support: 9 35 a. If only one parent is currently providing coverage 10 1 for the child under a health benefit plan other than public 10 2 coverage, and the plan is available as described in section 10 3 252E.1A, subsection 3, the unit shall enter or seek an order 10 4 for that parent to provide coverage. 10 5 b. If both parents are currently providing coverage for the 10 6 child under a health benefit plan other than public coverage, 10 7 and both plans are available as described in section 252E.1A, 10 8 subsection 3, the unit shall enter or seek an order for both 10 9 parents to provide coverage. 10 10 c. If neither parent is currently providing coverage 10 11 for the child under a health benefit plan other than public 10 12 coverage, and a health benefit plan other than public coverage 10 13 is available as described in section 252E.1A, subsection 3, 10 14 to one parent, the unit shall enter or seek an order for that 10 15 parent to provide coverage. 10 16 d. If neither parent is currently providing coverage 10 17 for the child under a health benefit plan other than public 10 18 coverage, and a health benefit plan other than public coverage 10 19 is available as described in section 252E.1A, subsection 3, to 10 20 both parents, the unit shall enter or seek an order for both 10 21 parents to provide coverage. 10 22 e. If a health benefit plan other than public coverage 10 23 is not available to either parent and one parent has public 10 24 coverage for the child, the unit shall enter or seek an order 10 25 for that parent to provide health care coverage. 10 26 4. The child support recovery unit or the court shall not 10 27 order any modification to an existing medical support order 10 28 in a proceeding conducted solely pursuant to chapter 252H, 10 29 subchapter IV. 10 30 Sec. 5. Section 252E.2, subsection 1, Code 2018, is amended 10 31 to read as follows: 10 32 1. An order requiring the provision of coverage under a 10 33 health benefit plan other than public coverage is authorization 10 34 for enrollment of the dependent if the dependent is otherwise 10 35 eligible to be enrolled. The dependent's eligibility and 11 1 enrollment for coverage under such a plan shall be governed by 11 2 all applicable terms and conditions, including, but not limited 11 3 to, eligibility and insurability standards. The dependent, if 11 4 eligible, shall be provided the same coverage as the obligor. 11 5 Sec. 6. Section 252E.3, Code 2018, is amended to read as 11 6 follows: 11 7 252E.3 Healthbenefitcare coverage of obligee. 11 8 For cases for which services are being provided pursuant 11 9 to chapter 252B, the order may require an obligor providinga11 10 healthbenefit plancare coverage for a child to also providea11 11 healthbenefit plancare coverage for the benefit of an obligee 11 12 if the obligee is eligible for enrollment under the plan in 11 13 which the child or the obligor is enrolled, and ifthe plan 11 14coverage for the obligee is available at no additional cost. 11 15 Sec. 7. Section 252E.4, subsection 1, Code 2018, is amended 11 16 to read as follows: 11 17 1. When a support order requires an obligor to provide 11 18 coverage under a health benefit plan other than public 11 19 coverage, the district court or the department may enter an 11 20 ex parte order directing an employer to take all actions 11 21 necessary to enroll an obligor's dependent for coverage under 11 22 a health benefit plan or may include the provisions in an ex 11 23 parte income withholding order or notice of income withholding 11 24 pursuant to chapter 252D. The child support recovery unit, 11 25 where appropriate, shall issue a national medical support 11 26 notice to an employer within two business days after the 11 27 date information regarding a newly hired employee is entered 11 28 into the centralized employee registry and matched with a 11 29 noncustodial parent in the case being enforced by the unit, or 11 30 upon receipt of other employment information for such parent. 11 31 The department may amend the information in the ex parte order 11 32 or may amend or terminate the national medical support notice 11 33 regarding health insurance provisions if necessary to comply 11 34 with health insurance requirements including but not limited to 11 35 the provisions of section 252E.2, subsection 2, or to correct 12 1 a mistake of fact. 12 2 Sec. 8. Section 252E.16, subsection 1, Code 2018, is amended 12 3 to read as follows: 12 4 1.TheUnless otherwise specified, the provisions of this 12 5 chapter take effect July 1, 1990, for all support orders 12 6 entered pursuant to chapter 234, 252A, 252C, 598, or 600B. 12 7 Sec. 9. ADMINISTRATIVE RULES ==== TRANSITION. Until such 12 8 time as the department of human services adopts rules pursuant 12 9 to chapter 17A necessary to administer this Act, all of the 12 10 following shall apply: 12 11 1. The child support recovery unit may initiate proceedings 12 12 to establish and modify support orders in accordance with 12 13 chapter 252E, as amended in this Act. 12 14 2. The child support recovery unit may, to the extent 12 15 appropriate, apply and utilize procedures, rules, and forms 12 16 substantially similar to those applicable and utilized pursuant 12 17 to section 252E.1B, as enacted in this Act, for proceedings 12 18 initiated in accordance with section 252E.1A. 12 19 Sec. 10. EFFECTIVE DATE. This Act takes effect October 1, 12 20 2018. 12 21 EXPLANATION 12 22 The inclusion of this explanation does not constitute agreement with 12 23 the explanation's substance by the members of the general assembly. 12 24 This bill amends provisions relating to medical support 12 25 for a child, based on the final rule adopted by the centers 12 26 for Medicare and Medicaid services and the administration 12 27 for children and families of the United States department of 12 28 health and human services on December 20, 2016, pursuant to 12 29 Executive Order 13563 of January 18, 2011. Under 45 C.F.R. 12 30 subtitle B, chapter III, section 303.31, specifically, states 12 31 are provided with flexibility to permit parents to meet their 12 32 medical support obligations by providing health care coverage 12 33 or payment for medical expenses that are reasonable in cost and 12 34 best meet the health care needs of the child, and clarifies 12 35 that health care coverage includes public and private coverage. 13 1 The bill provides definitions including "cash medical 13 2 support", "health care coverage", and "public coverage", and 13 3 includes public coverage in the definition of a "health benefit 13 4 plan". 13 5 The bill provides for the provision of medical support 13 6 either by providing and paying for the medical needs of a 13 7 dependent through a health benefit plan, including public 13 8 coverage, or the payment of cash medical support. The bill 13 9 provides the conditions for determining whether medical support 13 10 is to be provided through a health benefit plan other than 13 11 public coverage or through public coverage and whether the 13 12 custodial or noncustodial parent is required to provide health 13 13 care coverage. 13 14 The bill also provides the process and order of priority to 13 15 be followed when the child support recovery unit (CSRU) enters 13 16 or seeks an order for medical support. 13 17 The bill directs the department of human services to adopt 13 18 rules pursuant to Code chapter 17A as necessary to administer 13 19 the bill, but provides that until such time as rules are 13 20 adopted the CSRU may initiate proceedings to establish and 13 21 modify support orders in accordance with Code chapter 252E, 13 22 as amended in the bill, and may, to the extent appropriate, 13 23 apply and utilize procedures, rules, and forms substantially 13 24 similar to those applicable and utilized pursuant to Code 13 25 section 252E.1B for proceedings initiated in accordance with 13 26 Code section 252E.1A, as enacted in the bill. 13 27 The bill takes effect October 1, 2018. 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