S 3361 IS
102d CONGRESS
2d Session
S. 3361
To amend title IV of the Social Security Act to improve access to health
insurance coverage through child support enforcement procedures, and for
other purposes.
IN THE SENATE OF THE UNITED STATES
October 6 (legislative day, SEPTEMBER 30), 1992
Mr. MOYNIHAN introduced the following bill; which was read twice and referred
to the Committee on Finance
A BILL
To amend title IV of the Social Security Act to improve access to health
insurance coverage through child support enforcement procedures, and for
other purposes.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Child Support Enforcement Amendments of 1992'.
SEC. 2.  HEALTH INSURANCE COVERAGE FOR DEPENDENT CHILDREN OF EMPLOYEES OF
THE UNITED STATES AND THE DISTRICT OF COLUMBIA.
  (a) IN GENERAL- Section 459 of the Social Security Act (42 U.S.C. 659)
  is amended--
  (1) by redesignating subsections (b), (c), (d), (e), and (f), as subsections
  (c), (d), (e), (f), and (g), respectively; and
  (2) by inserting after subsection (a), the following new subsection:
  `(b)(1) Notwithstanding any other provision of law, any agency, subdivision,
  or instrumentality of the United States and the District of Columbia,
  shall be subject, in like manner and to the same extent as if the United
  States or the District of Columbia were a private person, to legal process
  requiring the enrollment of a dependent child of an employee of the United
  States or the District of Columbia or the custodial parent of such dependent
  child in a health benefits plan if a child support order obligates the
  employee to provide health insurance coverage to such dependent child or
  custodial parent.
  `(2) Upon the service of legal process requiring the enrollment of an
  employee's dependent child or the custodial parent of such dependent
  child in a health benefits plan, the employing agency, subdivision, or
  instrumentality of the United States or the District of Columbia shall--
  `(A) if the dependent child or the custodial parent is eligible for coverage
  under applicable enrollment provisions--
  `(i) enroll the dependent child or the custodial parent in the health
  benefits plan in which the absent parent is enrolled or, if the absent
  parent is not enrolled in a health benefits plan, in the least costly
  health benefits plan available;
  `(ii) release to the custodial parent and the applicable State child support
  enforcement agency, upon request, information on such health benefits plan,
  including the name of the insurer, the policy number, and information on
  copayments, deductibles, and claims procedures;
  `(iii) ensure that the signature of the custodial parent is acceptable
  for purposes of processing any health insurance claim under the health
  benefits plan;
  `(iv) notify the custodial parent and the applicable State child support
  enforcement agency within 10 days after the date on which the absent
  parent's employment is terminated and provide information regarding
  conversion privileges; and
  `(v) subject any moneys (the entitlement to which is based upon remuneration
  for employment) to the employee's obligation to make payments for such
  enrollment; and
  `(B) inform the custodial parent and the applicable State child support
  enforcement agency if the dependent child and the custodial parent are
  not eligible for enrollment in any health benefits plan.'.
  (b) CONFORMING AMENDMENTS-
  (1) Section 461 of such Act (42 U.S.C. 661) is amended--
  (A) in the matter preceding subsection (a)(1), by inserting `, or to a health
  benefits plan provided through employment with' after `(or payable by)'; and
  (B) in subsection (b)--
  (i) in paragraph (1)--
  (I) by striking `and (B)' and inserting `(B)'; and
  (II) by striking `brought,' and inserting `brought, and (C) an indication of
  the data reasonably required in order for the agency promptly to identify the
  individual with respect to whose dependent child legal process is brought
  for enrollment of such child in a health benefits plan and an indication
  of the data reasonably required to enroll such child in such plan,';
  (ii) in paragraph (2)--
  (I) by striking `and (B)' and inserting `(B)'; and
  (II) by striking `brought, and' and inserting `brought, and (C) an indication
  of the data reasonably required in order for the agency promptly to identify
  the individual with respect to whose dependent child legal process is brought
  for enrollment of such child in a health benefits plan and an indication
  of the data reasonably required to enroll such child in such plan,';
  (iii) in paragraph (3), by striking `alimony payments.' and inserting
  `alimony payments, and'; and
  (iv) by adding at the end the following new paragraph:
  `(4) provide that an employing agency, subdivision, or instrumentality
  of the United States or the District of Columbia shall be liable for
  any expenses incurred for health care provided to a dependent child or a
  custodial parent due to the failure of such employing agency, subdivision,
  or instrumentality to obtain or maintain health insurance coverage as
  provided in section 459(b).'.
  (2) Section 462 of such Act (42 U.S.C. 662) is amended--
  (A) in the matter preceding subsection (a) by striking `section 459'
  and inserting `sections 459 and 461';
  (B) in subsection (b) by striking `health care,' and inserting `health
  insurance coverage (including coverage of medical, dental, and psychiatric
  care), health care which is not reimbursed by insurance,';
  (C) in subsection (e)--
  (i) in paragraph (1), by striking `, and' and inserting a comma;
  (ii) in paragraph (2), by striking `payments.' and inserting `payments,
  and'; and
  (iii) by adding at the end the following new paragraph:
  `(3) is directed to, and the purpose of which is to compel, a government
  entity to enroll a dependent child of an employee of such government entity
  and the custodial parent of such dependent child in a health benefits plan.';
  (D) in paragraph (4) of subsection (g), by inserting `, except for premiums
  required to meet the individual's obligation to provide health insurance
  coverage for a dependent child and a custodial parent of such dependent
  child,' after `premiums,'; and
  (E) by adding at the end the following new subsections:
  `(h) The term `health benefits plan' means a health benefits plan described
  in sections 8903 and 8903a of title 5, United States Code.
  `(i) The term `dependent child' means a child who--
  `(1)(A) has not attained age 22, or
  `(B) is incapable of self-support because of a mental or physical disability
  which existed before such child attained age 22;
  `(2)(A) is a natural or adopted child of an employee of the United
  States or the District of Columbia (including any agency, subdivision,
  or instrumentality thereof); or
  `(B) is a stepchild of such employee, if the law of the State in which the
  child support order was issued holds such employee liable for the support
  of such stepchild; and
  `(3) is not married.'.
SEC. 3. HEALTH INSURANCE COVERAGE OF DEPENDENT CHILDREN OF EMPLOYEES OF
PRIVATE EMPLOYERS.
  Section 466(a) of the Social Security Act (42 U.S.C. 666(a)) is amended
  by adding at the end the following new paragraph:
  `(11)(A) Procedures requiring that in the case of any child support order
  subject to enforcement under this part which is issued or modified on
  or after the date of the enactment of this paragraph and which contains a
  provision requiring an absent parent to obtain health insurance coverage for
  a dependent child (as defined in section 462(i)) or a custodial parent, such
  absent parent shall, within 30 days after receiving notice of such order,
  provide to the State child support enforcement agency documentary evidence
  of health insurance coverage for the dependent child or the custodial parent
  or documentary evidence that application for such coverage has been made.
  `(B) Procedures requiring that if an absent parent fails to comply with
  the provisions of subparagraph (A), the State agency shall deliver a copy
  of the child support order to such absent parent's employer within 15 days
  after such failure and upon receipt of such order, the employer shall--
  `(i) if the dependent child or the custodial parent is eligible for coverage
  under applicable enrollment provisions--
  `(I) enroll the dependent child or the custodial parent in the plan in which
  the absent parent is enrolled or, if the absent parent is not enrolled in
  a plan, in the least costly plan available;
  `(II) release to the custodial parent and the State child support enforcement
  agency, upon request, information on such plan, including the name of the
  insurer, the policy number, and information on copayments, deductibles,
  and claims procedures;
  `(III) ensure that the signature of the custodial parent will be acceptable
  for purposes of processing any health insurance claim under the plan;
  `(IV) notify the custodial parent and the State child support enforcement
  agency within 10 days after the date on which the absent parent's employment
  is terminated and provide information regarding conversion privileges; and
  `(V) deduct and pay the cost of any premiums required for such health
  insurance coverage from the absent parent's earnings; and
  `(ii) inform the custodial parent and the State child support enforcement
  agency if the dependent child or the custodial parent is not eligible for
  enrollment in any health insurance plan provided by the employer.
  `(C) Procedures requiring that--
  `(i) an employer who fails to obtain or maintain health insurance coverage
  as provided in subparagraph (B) shall be liable for any expenses incurred
  for health care provided to a dependent child or a custodial parent after
  the date of the receipt by such employer of a notice requiring such coverage
  under subparagraph (B); and
  `(ii) a fine shall be imposed against any employer who discharges from
  employment, refuses to employ, or takes disciplinary action against
  any absent parent subject to a child support order providing for health
  insurance coverage of a dependent child or a custodial parent because of
  the existence of such an order and the obligations or additional obligations
  which such order may impose.
  `(D) Procedures requiring that--
  `(i) a child support order delivered to an employer under subparagraph (B)
  shall specify either support withholdings or insurance premium deductions
  as having priority for the duration of such order in the event the maximum
  total deduction permitted at any time by the Consumer Credit Protection
  Act is insufficient to fully cover both; and
  `(ii) the employer shall consider and direct insurance premium deductions
  and support withholdings the same for purposes of the Consumer Credit
  Protection Act.'.
SEC. 4. RESTRICTIONS ON ELIGIBILITY CRITERIA IMPOSED ON DEPENDENT CHILDREN
BY INSURERS.
  Section 466 of the Social Security Act (42 U.S.C. 666) is amended by adding
  at the end the following new subsection:
  `(f)(1) In order to satisfy section 454(20)(A), each State must have in
  effect laws requiring each private insurer to allow a dependent child to
  be eligible for coverage under any health insurance policy issued by such
  insurer regardless of whether such child--
  `(A) receives support from a parent insured by the insurer,
  `(B) is claimed for tax purposes by a parent insured by the insurer,
  `(C) resides with a parent insured by the insurer, or
  `(D) was born out-of-wedlock.'.
  `(2) For purposes of this subsection, the term `private insurer' includes
  a health benefit plan, fund, third-party administrator, or similar entity
  or program providing payment for medical assistance.'.
SEC. 5. REVIEW AND MODIFICATION OF CHILD SUPPORT ORDERS.
  Section 466(a)(10) of the Social Security Act (42 U.S.C. 666(a)(10))
  is amended:
  (1) in subparagraph (A), by striking `Procedures to ensure that, beginning
  2 years after the date of the enactment of this paragraph' and inserting
  `Procedures to ensure that during the period beginning 2 years after the
  date of the enactment of this paragraph and ending on September 30, 1993';
  (2) by redesignating subparagraphs (B) and (C) as subparagraphs (C) and
  (D), respectively;
  (3) by inserting after subparagraph (A), the following new subparagraph:
  `(B) Procedures to ensure that beginning on October 1, 1993, the State must,
  at the request of either parent subject to a child support order, or of a
  State child support enforcement agency, initiate a review of such order,
  and adjust such order, as appropriate, in accordance with the guidelines
  established pursuant to section 467(a).';
  (4) in subparagraph (C), as redesignated--
  (A)  by striking `Procedures to ensure that, beginning 5 years after the
  date of the enactment of this paragraph or such earlier date as the State
  may select' and inserting `Procedures to ensure that beginning upon the
  establishment of a statewide automated data processing and information
  retrieval system meeting the requirements of section 454(16), or on October
  1, 1995, whichever occurs earlier'; and
  (5) in subparagraph (D), as redesignated--
  (A) by striking `and' at the end of clauses (i) and (ii);
  (B) by striking the period at the end of clause (iii) and inserting
  `and'; and
  (C) by adding at the end the following new clause:
  `(iv) of the right to obtain information which is necessary for such parent
  to obtain a review of such order and recommend an adjustment to such order
  or recommend that no adjustment to such order should be made.'.
SEC. 6. TIME PERIOD FOR ACHIEVING SUBSTANTIAL COMPLIANCE WITH CHILD SUPPORT
ENFORCEMENT PROGRAM REQUIREMENTS.
  Section 403(h)(2)(A)(i) of the Social Security Act (42
  U.S.C. 603(h)(2)(A)(i)) is amended by striking `achieve substantial
  compliance within' and all that follows and inserting `achieve substantial
  compliance within a period not to exceed 18 months from the date on which
  the corrective action plan is approved under clause (ii);'.
SEC. 7. REIMBURSEMENT RATE FOR AUTOMATED DATA SYSTEMS.
  Section 123(c) of the Family Support Act of 1988 is amended by striking
  `September 30, 1995' and inserting `September 30, 2000'.
SEC. 8. WAIVER OF PREEMPTION REQUIREMENTS UNDER THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974.
  Section 514(b)(7) of the Employee Retirement Income Security Act of
  1974 (29 U.S.C. 1144(b)(7)) is amended by striking `of this title)' and
  inserting `of this title) and child support orders enforced under a State
  child support enforcement program authorized under part D of title IV of
  the Social Security Act which require an employer to enroll an employee's
  child or the custodial parent of such child in any health insurance plan
  provided by such employer.'.
SEC. 9. ESTABLISHMENT OF CHILD SUPPORT ADVISORY COMMITTEE.
  (a) ESTABLISHMENT- The Secretary of Health and Human Services (hereafter
  in this section referred to as the `Secretary') shall establish a Child
  Support Advisory Committee (hereafter in this section referred to as the
  `Committee').
  (b) MEMBERSHIP-
  (1) NUMBER OF MEMBERS- The Secretary shall determine the number of members
  on the Committee.
  (2) APPOINTMENT- The members of the Committee shall be appointed by the
  Secretary and shall include--
  (A) a representative of a State operating a child support enforcement
  program authorized under part D of title IV of the Social Security Act, and
  (B) a representative of recipients of child support enforcement services.
  (c) DUTIES OF THE COMMITTEE- The Committee shall assist the Secretary in
  preparing and submitting to the Congress, not later than 12 months after
  the date of the enactment of this section, recommendations--
  (1) on revised audit criteria to be used pursuant to section 452(a)(4)
  of the Social Security Act based on--
  (A) common data elements which are defined, collected, and reported in a
  uniform manner from each State;
  (B) numeric measures of the outcomes of the child support enforcement
  program; and
  (C) numeric measures for assessing compliance with the regulations issued
  by the Secretary pursuant to subsections (h) and (i) of section 452 of
  the Social Security Act;
  (2) for the purpose of section 403(h) of the Social Security Act--
  (A) on a definition of substantial compliance with the audit criteria
  issued pursuant to section 452(a)(4) of the Social Security Act; and
  (B) on a standard for determining how soon after interim or final Federal
  regulations are issued a State can be audited for determining compliance
  with those regulations; and
  (3) on any necessary changes in the incentive system authorized by section
  458 of the Social Security Act, based on the outcome measures referred to
  in paragraph (1)(B).
  (d) COMPENSATION-
  (1) IN GENERAL- Members of the Committee shall serve without compensation.
  (2) EXPENSES, ETC., REIMBURSED- The members of the Committee may be allowed
  travel expenses while on the business of the Committee, including per diem
  in lieu of subsistence, as authorized by section 5703 of title 5, United
  States Code, for persons employed intermittently in Government service.
  (3) APPLICATION OF ACT- The provisions of the Federal Advisory Committee
  Act shall not apply with respect to the Committee.
  (4) SUPPORT- The Secretary shall supply such necessary office facilities,
  office supplies, support services, and related expenses as necessary to
  carry out the functions of the Committee.
  (e) TIMING OF ESTABLISHMENT- The Secretary shall establish the Committee
  not later than 60 days after the date of the enactment of this section.
SEC. 10. EFFECTIVE DATE.
  (a) IN GENERAL- Except as provided in subsection (b), the amendments made
  by this Act shall be effective on the date of the enactment of this Act.
  (b) SPECIAL RULE- In the case of a State that the Secretary determines
  requires State legislation (other than legislation appropriating funds)
  in order to meet the additional requirements imposed by the amendments
  made by this Act, the State shall not be regarded as failing to comply
  with the requirements of this Act before the first day of the first
  calendar quarter beginning after the close of the first regular session
  of the State legislature that begins after the date of enactment of this
  Act. For purposes of this subsection, in the case of a State that has a
  2-year legislative session, each year of the session shall be treated as
  a separate regular session of the State legislature.