Health Insurance Assignment

Division 9, Part 1, Chapter 7, Article 2 deals with the assignment of health insurance coverage in child support cases.

Section 3760 defines the terms “employer,” “health insurance,” “health insurance plan,” “health insurance coverage,” “health care services,” “health insurance coverage assignment,” “health insurance coverage assignment,” “assignment order,” and “national medical support notice.”

Section 3761 provides that, upon application by a party or local child support agency in any proceeding where the court has ordered either or both parents to maintain health insurance coverage, the court is required to order the employer of the obligor parent or other person providing health insurance to the obligor to enroll the supported child in the health insurance plan available to the obligor through the employer or other person and to deduct the appropriate premium or costs, if any, from the earnings of the obligor unless the court makes a finding of good cause for not making the order.

Section 3762 provides that good cause for not making a health insurance coverage assignment order must be limited to either of two specified court findings.

Section 3763 specifies that the health insurance coverage assignment order may be ordered at the time of trial or entry of a judgment ordering health insurance coverage. The order operates as an assignment and is binding on any existing or future employer of the obligor parent, or other person providing health insurance to the obligor, upon whom a copy of the order has been served.

Section 3764 provides that a health insurance coverage assignment order does not become effective until 20 days after service by the applicant of the assignment order on the employer. Within 10 days after service of the order, the employer or other person providing health insurance to the obligor must deliver a copy of the order to the obligor, together with a written statement of the obligor’s rights and the relevant procedures under the law to move to quash the order.

Section 3765 allows the obligor to move to quash a health insurance coverage assignment order as provided in this section if the obligor declares under penalty of perjury that there is error on any of the six specified grounds. The motion must be filed with the court within 15 days of the after delivery of a copy of the order to the obligor. Upon a finding of error, the court is required to quash the assignment.

Section 3766 requires the employer, or other person providing health insurance, to take steps to commence coverage, consistent with the order for the health insurance coverage assignment, within 30 days after service of the assignment order upon the obligor, unless the employer or other person providing health insurance coverage receives an order to quash the health insurance coverage assignment.

If the obligor has not enrolled in an available health plan, there is a choice of coverage, and the court has not ordered coverage by a specific plan, the employer or other person providing health insurance are required to enroll the child in the plan that will provide reasonable benefits or coverage where the child resides. If that coverage is not available, the employer or other person providing health insurance must, within 20 days, return the assignment order to the attorney or person initiating the assignment.

Section 3767 requires the employer or other person providing health insurance to do all three tasks set forth.

Section 3768 states that an employer or other person providing health insurance who willfully fails to comply with a valid health insurance coverage assignment order entered and served on the employer or other person pursuant to this article is liable to the applicant for the amount incurred in health care services that would otherwise have been covered under the insurance policy but for the conduct of the employer or other person that was contrary to the assignment order.

Section 3769 prohibits any employer from using a health insurance coverage assignment order as grounds for refusing to hire a person or for discharging or taking disciplinary action against an employee.

Section 3770 requires the court to terminate a health insurance coverage assignment order if any of the four specified conditions exist.

Section 3771 requires the employer, upon request of the local child support agency, to provide the five specified items of information to the local child support agency within 30 days.

Section 3772 required the Judicial Council to adopt forms for the health insurance coverage assignment required or authorized. The parties and child are to be sufficiently identified on the forms by the inclusion of birth dates, social security numbers, and any other information the Judicial Council determines is necessary.

Section 3773 states that this section applies only to Title IV-D cases where support enforcement services are being provided by the local child support agency. After the court has ordered that a parent provide health insurance coverage, the local child support agency is required to serve on the employer a national medical support notice in lieu of the health insurance coverage assignment order.