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AN ACT

RELATING TO CHILD SUPPORT; REQUIRING CERTAIN PARENTS TO

PROVIDE HEALTH INSURANCE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 27-1-14 NMSA 1978 (being Laws 1997,

Chapter 237, Section 34) is amended to read:

"27-1-14. ENFORCEMENT OF ORDERS FOR HEALTH CARE.--

A. All Title IV-D agency cases shall include a

provision for the health care coverage of each child. In the

case in which a medical support obligor parent provides such

coverage and changes employment and the new employer provides

such coverage, the state Title IV-D agency shall transfer

notice of the provision to the employer, which notice shall

operate to enroll each child in the medical support obligor's

health plan unless the medical support obligor successfully

contests the notice.

B. For purposes of this section, "medical support

obligor" means a person owing a duty to provide health

support, or against whom a proceeding for the enforcement of

such a duty of support is commenced or for registration of a

support order that includes provisions for such support for

each minor child."

Section 2. Section 40-4C-2 NMSA 1978 (being Laws 1990,

Chapter 78, Section 2, as amended) is amended to read:

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"40-4C-2. PURPOSE.--To ensure that children have access

to quality medical care, it is the purpose of the Mandatory

Medical Support Act to require parents to provide or purchase

health insurance coverage for their minor children when such

coverage is available."

Section 3. Section 40-4C-3 NMSA 1978 (being Laws 1990,

Chapter 78, Section 3, as amended) is amended to read:

"40-4C-3. DEFINITIONS.--As used in the Mandatory

Medical Support Act:

A. "court" means any district court ordering

support by a medical support obligor;

B. "department" means the human services

department;

C. "employer" means an individual, organization,

agency, business or corporation hiring a medical support

obligor for pay;

D. "health insurance coverage" means those

coverages generally associated with a medical plan of

benefits, which may include dental insurance, but not

including medicaid coverage authorized by Title 19 of the

Social Security Act and administered by the department;

E. "insurer" means an employment-related or other

group health care insurance plan, a health maintenance

organization, a nonprofit health care plan or other type of

health care insurance plan under which medical or dental

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services are provided, regardless of service delivery

mechanism;

F. "medical support obligee" means a person to

whom a duty of medical support is owed or a person, including

the department, who has commenced a proceeding for enforcement

of a duty to provide health support for each minor child or

for registration of a support order that includes a provision

for such support for each minor child;

G. "medical support obligor" means a person owing

a duty to provide health support or against whom a proceeding

for the enforcement of such a duty of support is commenced or

for registration of a support order that includes provisions

for such support for each minor child;

H. "minor child" means a child younger than

eighteen years of age who has not been emancipated; and

I. "national medical support notice" means a

notice to an employer that an employee's child must be covered

by the employment-related group health and dental care

insurance plan pursuant to a court order."

Section 4. Section 40-4C-4 NMSA 1978 (being Laws 1990,

Chapter 78, Section 4, as amended) is amended to read:

"40-4C-4. MEDICAL SUPPORT--ORDER.--

A. The court shall determine a parent or both

parents to be a medical support obligor based on the

following:

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(1) the availability of health insurance

coverage that meets or exceeds the minimum standards required

under the Mandatory Medical Support Act; and

(2) the availability of health insurance

coverage through an employment-related or other group health

and dental care insurance plan.

B. When a medical support obligor is ordered to

provide health insurance coverage, the medical support obligor

shall properly name each minor child on behalf of whom support

is owed as an eligible dependent on such insurance.

C. The court may consider the impact of the cost

of health insurance coverage on the payment of the base child

support amounts in determining whether such insurance coverage

shall be ordered.

D. The court may order the medical support obligor

to obtain health insurance coverage for each minor child to

whom support is owed if the court finds that health insurance

coverage for each minor child is not available to the medical

support obligor through an employment-related or other group

health care insurance plan.

E. The court shall require the medical support

obligor to be liable for all or a portion of the medical and

dental expenses of each minor child that are not covered by

the required health insurance coverage if:

(1) the court finds that the health

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insurance coverage required to be obtained by a medical

support obligor does not pay all the reasonable and necessary

medical or dental expenses of each minor child; and

(2) the court finds that a medical support

obligor has the financial resources to contribute to the

payment of these medical or dental expenses.

F. The court shall require the medical support

obligor to provide health insurance coverage or dental

insurance coverage for the benefit of the medical support

obligee if it is available at no additional cost to the

medical support obligor.

G. The court in any proceeding for the

establishment, enforcement or modification of a child support

obligation may modify an existing order of support or

establish child support, as applicable, for each minor child

to incorporate the provisions for medical and dental support

ordered pursuant to the Mandatory Medical Support Act."

Section 5. Section 40-4C-5 NMSA 1978 (being Laws 1990,

Chapter 78, Section 5) is amended to read:

"40-4C-5. ORDER--PROOF OF COMPLIANCE--NOTICE.--

A. The medical support obligor shall provide to

the medical support obligee within thirty days of receipt of

effective notice of a court order for health insurance

coverage pursuant to the Mandatory Medical Support Act written

proof of the medical support obligor's compliance with that

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order. Compliance means either that the health insurance

coverage has been obtained or that a correct and complete

application for such coverage has been made.

B. The medical support obligee shall forward a

copy of the court order for health insurance coverage issued

pursuant to the Mandatory Medical Support Act to the medical

support obligor's employer or union only when ordered to do so

by the court or when:

(1) the medical support obligor fails to

provide written proof of compliance with the court order to

the medical support obligee within thirty days of the medical

support obligor's receipt of effective written notice of the

court order;

(2) the medical support obligee serves by

mail at the medical support obligor's last known post office

address written notice on the medical support obligor of the

medical support obligee's intent to enforce the order; and

(3) the medical support obligor fails to

provide within fifteen days after the date the medical support

obligee mailed the notice in Paragraph (2) of this subsection

written proof to the medical support obligee that the medical

support obligor has obtained the health insurance coverage

ordered by the court or has applied for such coverage.

C. Upon receipt of a court order for health

insurance coverage pursuant to the Mandatory Medical Support

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Act, the employer or union shall forward a copy of the order

to the health insurer or dental insurer, as applicable."

Section 6. Section 40-4C-6 NMSA 1978 (being Laws 1990,

Chapter 78, Section 6, as amended) is amended to read:

"40-4C-6. OBLIGATIONS--EMPLOYERS, UNIONS AND INSURERS--

PLAN.--

A. Upon receipt of a national medical support

notice or the court order for health insurance coverage

pursuant to Section 40-4C-5 NMSA 1978 or upon application of

the medical support obligor pursuant to the court order, the

employer or union shall enroll the minor child as an eligible

dependent in the health insurance plan and withhold any

required premium from the medical support obligor's income or

wages. If more than one health and dental insurance plan is

offered by the employer, union or insurer, the minor child

shall be enrolled in the plan in which the medical support

obligor is enrolled. If the medical support obligor is not

enrolled in a plan, the child shall be enrolled in a plan that

meets the minimum coverage criteria required pursuant to the

Mandatory Medical Support Act. If the medical support obligor

is not enrolled in a plan, the premiums charged for the child

or children of the medical support obligor shall be those

charged for the enrollment of the medical support obligor

only.

B. In any instance in which the medical support

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obligor is required by a court order to provide health

insurance coverage for each minor child and the medical

support obligor is eligible for health insurance coverage

through an employment-related or other group health care

insurance plan, the employer, union or insurer shall do the

following:

(1) permit the medical support obligor to

enroll for health insurance coverage each minor child who is

otherwise eligible for coverage without regard to any

enrollment season restrictions;

(2) enroll each minor child for health

insurance coverage if the medical support obligor fails to

enroll each minor child upon application by the medical

support obligee or the department;

(3) not disenroll or eliminate coverage of

any minor child so enrolled unless:

(a) the employer is provided with

satisfactory written evidence that the court order is no

longer in effect;

(b) the minor child is or will be

enrolled in comparable health coverage that meets the coverage

criteria required pursuant to the Mandatory Medical Support

Act and that will take effect not later than the effective

date of the disenrollment;

(c) the medical support obligor has

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terminated employment; or

(d) the employer has eliminated health

insurance coverage for all of its employees; and

(4) withhold from the medical support

obligor's compensation the medical support obligor's share, if

any, of premiums for health insurance coverage and to pay the

share of premiums to the insurer, unless otherwise provided in

law or regulation.

C. In those instances in which the medical support

obligor fails or refuses to execute any document necessary to

enroll a minor child in a health insurance plan ordered by the

court, the required information and authorization may be

provided by the department or the custodial parent or guardian

of the minor child.

D. Information and authorization provided by the

department or the custodial parent or guardian of a minor

child shall be valid for the purpose of meeting enrollment

requirements of the health insurance plan and shall not affect

the obligation of the employer or union and the insurer to

enroll the minor child in the health insurance plan for which

other eligibility, enrollment, underwriting terms and other

requirements are met. In instances in which a minor child is

insured through the medical support obligor, the insurer shall

provide all information to the medical support obligee that

may be helpful or necessary for the minor child to obtain

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benefits.

E. A minor child that a medical support obligor is

required to cover as an eligible dependent pursuant to the

Mandatory Medical Support Act shall be considered for

insurance coverage purposes as a dependent of the medical

support obligor until the child is emancipated or until

further order of the court.

F. In instances in which a minor child is insured

through a medical support obligor, the insurer is prohibited

from denying health insurance coverage of the minor child on

the grounds that the minor child was born out of wedlock, that

the minor child is not claimed as a dependent on the medical

support obligor's federal income tax return or that the minor

child does not reside with the medical support obligor or

reside in the insurer's service area.

G. In instances in which a minor child is insured

through a medical support obligor, the insurer is prohibited

from imposing requirements on the department that are

different from requirements applicable to an agent or assignee

of any other individual covered by the insurer.

H. In instances in which a minor child is insured

through a medical support obligor who is a noncustodial

parent, the insurer shall permit the custodial parent or

health care provider, with the approval of the custodial

parent, to submit claims for covered services without the

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approval of the medical support obligor. The insurer shall

make payments on submitted claims directly to the custodial

parent or the health care provider.

I. If the medical support obligor is terminated,

the employer shall notify the department of the termination."

Section 7. Section 40-4C-10 NMSA 1978 (being Laws 1990,

Chapter 78, Section 10, as amended) is amended to read:

"40-4C-10. EMPLOYER, UNION OR INSURER NOTICE.--When an

order for health insurance coverage pursuant to the Mandatory

Medical Support Act is in effect, upon termination of the

medical support obligor's employment or upon termination of

the insurance coverage, the employer, union or insurer shall

make a good faith effort to notify the department and the

other parent within ten days of the termination date with

notice of conversion privileges."

Section 8. Section 40-4C-11 NMSA 1978 (being Laws 1990,

Chapter 78, Section 11, as amended) is amended to read:

"40-4C-11. RELEASE OF INFORMATION.--When an order for

health insurance coverage pursuant to the Mandatory Medical

Support Act is in effect, the medical support obligor's

employer, union or insurer shall release to the other parent,

upon request, information on such coverage, including the name

of the insurer."

Section 9. Section 40-4C-12 NMSA 1978 (being Laws 1990,

Chapter 78, Section 12, as amended) is amended to read:

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"40-4C-12. MEDICAL SUPPORT OBLIGOR LIABILITY.--

A. A medical support obligor who fails to maintain

the health insurance coverage for the benefit of a minor child

as ordered pursuant to the Mandatory Medical Support Act shall

be liable to the department or the other parent for any

medical and dental expenses incurred from the date of the

court order.

B. A medical support obligor who receives payment

from a third party for the costs of medical or dental services

provided to a minor child and who fails to use the payment to

reimburse the department is liable to the department to the

extent of the department's payment for the services. The

department is authorized to intercept the obligor's tax

refund, if the medical support obligor is a noncustodial

parent, or use other means of enforcement available to the

department to recoup amounts paid. Claims for current or past

due child support take priority over any claims made pursuant

to this subsection. Failure to maintain health insurance

coverage as ordered constitutes a showing of increased need

and provides a basis for modification of the medical support

obligor's child support order.

C. A medical support obligor is required to

provide the department with the following information

concerning health insurance coverage:

(1) medical support obligor's name and tax

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identification number;

(2) type of coverage (single or family);

(3) name, address and identifying number of

health insurance coverage;

(4) name and tax identification number of

other individuals who are provided health insurance coverage

by the medical support obligor;

(5) effective period of coverage; and

(6) name, address and the tax identification

number of the employer."

Section 10. Section 40-4C-13 NMSA 1978 (being Laws

1990, Chapter 78, Section 13, as amended) is amended to read:

"40-4C-13. DEPARTMENT--DUTIES.--The department shall

pursue the establishment and enforcement of an order for

health insurance coverage when a minor child receives public

assistance or medicaid or upon application of a custodial or

noncustodial parent to the department and payment by the

custodial or noncustodial parent of fees required by the

department."

Section 11. Section 40-4C-14 NMSA 1978 (being Laws

1990, Chapter 78, Section 14) is amended to read:

"40-4C-14. ENFORCEMENT.--All remedies available for the

collection and enforcement of child support apply to medical

support ordered pursuant to the Mandatory Medical Support Act.

For the purpose of enforcement, the costs of individual or

group health or hospitalization coverage or liabilities

established pursuant to Section 40-4C-12 NMSA 1978 shall be

included in a medical support judgment."

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