04/19/2000 02:00 PM House FIN

SENATE BILL NO. 207                                                                                                             
                                                                                                                                
"An Act relating to the establishment and enforcement                                                                           
of medical support orders for children; and providing                                                                           
for an effective date."                                                                                                         
                                                                                                                                
BARBARA MIKLOS, CHILD SUPPORT ENFORCEMENT DIVISION testified                                                                    
via teleconference in support of SB 207.                                                                                        
                                                                                                                                
Senate Bill 207 helps both parents by providing more                                                                            
flexibility in child support cases. It gives the                                                                                
parents a choice by allowing the Child Support                                                                                  
Enforcement Division to establish a medical support                                                                             
order without also establishing a financial support                                                                             
order at the same time.                                                                                                         
                                                                                                                                
The child support agency is currently required to                                                                               
establish a medical support order whenever a child                                                                              
starts receiving medical assistance benefits. This is                                                                           
to ensure that the non-custodial parent provides health                                                                         
care coverage if available at a reasonable cost from                                                                            
his or her employer. Under existing statute, the agency                                                                         
must also establish a financial order at the same time                                                                          
-- even though the parents may not want or need a                                                                               
financial order. This creates problems if the financial                                                                         
order for monthly child support payments is not needed,                                                                         
and it also creates problems if the custodial parent                                                                            
later receives public assistance benefits and the child                                                                         
support agency has to go back and collect financial                                                                             
support. This legislation would solve both problems by                                                                          
allowing the agency to set up a medical support order                                                                           
only -- if that is what both parents want.                                                                                      
                                                                                                                                
This bill also amends the medical support statutes to                                                                           
provide that either parent, not simply the non-                                                                                 
custodial parent, may be required to provide health                                                                             
care coverage. This allows the court or the child                                                                               
support agency to consider which parent has the better                                                                          
or more cost-effective health care coverage available                                                                           
for the child.                                                                                                                  
                                                                                                                                
The bill also amends state law to clarify that a                                                                                
medical support order shall be issued regardless                                                                                
whether CSED knows at the time if health care coverage                                                                          
is available to either parent. That provision, however,                                                                         
would not take effect unless one or both of the parents                                                                         
has health insurance available at a reasonable cost.                                                                            
This allows more efficient enforcement of medical                                                                               
support for children.                                                                                                           
                                                                                                                                
In a survey of other states, most have separate                                                                                 
provisions for medical and financial orders as proposed                                                                         
in SB 207. This change in Alaska statutes is allowed                                                                            
under federal law and regulations.                                                                                              
                                                                                                                                
Representative J. Davies questioned if the legislation                                                                          
allows for the possibility that both parents be required to                                                                     
provide medical insurance.                                                                                                      
                                                                                                                                
DIANE WENDLANDT, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF                                                                      
LAW testified via teleconference. She affirmed that the                                                                         
legislation allows for the possibility that both parents be                                                                     
required to provide medical insurance. She noted that courts                                                                    
could require both parents to provide coverage. One parent's                                                                    
coverage may not cover everything that the other parent has.                                                                    
                                                                                                                                
Representative Foster MOVED to report SB 207 out of                                                                             
Committee with the accompanying fiscal note. There being NO                                                                     
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
SB 207 was REPORTED out of Committee with a "do pass"                                                                           
recommendation and with a zero fiscal note by the Department                                                                    
of Revenue, published 1/20/00.                                                                                                  
                                                                                                                                
RECESSED                                                                                                                        
                                                                                                                                
The meeting was recessed at 4:10 p.m.                                                                                           
                                                                                                                                
RECONVENED                                                                                                                      
                                                                                                                                
The meeting reconvened at 4:50 p.m.