GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	1 

HOUSE BILL 1269

Short Title:  Medical Support/Dependent Children.	(Public)
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Sponsors: Representatives S. Thompson; Bowie, Colton, Duncan, Easterling, Gardner, Holt, Judy Hunt, Perdue, Stamey, and Wiser.
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Referred to:  Judiciary.
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April 12, 1989

A BILL TO BE ENTITLED
AN ACT TO ESTABLISH THE DUTIES OF PARTIES ORDERED TO PROVIDE MEDICAL SUPPORT FOR DEPENDENT CHILDREN AND TO PROVIDE THAT COURT ORDERS AND WRITTEN AGREEMENTS REGARDING MEDICAL SUPPORT FOR DEPENDENT CHILDREN ARE VALID AUTHORIZATION TO INSURERS FOR PURPOSES OF RELEASING INFORMATION AND PROCESSING CLAIMS.
The General Assembly of North Carolina enacts:
Section 1.  Article 1 of Chapter 50 of the General Statutes is amended by adding a new section to read:
"§ 50-13.11. Court ordered medical support for dependent children; written agreements for medical support for dependent children.
(a)	As used in this section:
(1)	‘Court order' means any judgment or order of the courts of this State or of another state, including a written agreement to provide child support that has been incorporated into a court order.
(2)	‘Dependent child' means any person under the age of 18 who is not otherwise emancipated, married, or a member of the armed forces of the United States, or any person over the age of 18 for whom a court orders that support payments continue as provided in G.S. 50-13.4(c).
(3)	‘Insurance' means a hospital or medical expense incurred policy; a nonprofit hospital, medical, or dental care service plan contract; or a health maintenance organization subscriber contract.
(4)	‘IV-D case' means a case in which services have been applied for or are being provided by a child support enforcement agency established pursuant to Title IV-D of the Social Security Act as amended and Article 9 of Chapter 110 of the General Statutes.
(5)	‘Non-IV-D case' means any case, other than a IV-D case, in which child support is legally obligated to be paid.
(6)	‘Obligee' means, in a IV-D case, the child support enforcement agency, and in a non-IV-D case, the individual to whom a duty of support is owed or the individual's legal representative.
(7)	‘Obligor' means the individual who owes a duty to make child support or medical support payments under a court order.
(b)	When a court finds a duty of child support it may order the obligor to provide medical support for the dependent child through a plan obtained on a group basis through an employer, union, or professional association or through a policy obtained individually by the obligor.
(c)	A court order for medical support shall provide that the obligor shall name the dependent child as beneficiary on any health or dental insurance plan that is available to the obligor on a group basis through an employer, union, or professional association. The child shall be enrolled in the insurance plan in which the obligor is enrolled or the least costly comparable plan otherwise available to the obligor.  If a group plan is unavailable, the obligor, individually, shall obtain health or dental insurance coverage for the dependent child.
(d)	The obligor shall provide written proof to the obligee, within 45 days of entry of the court order, that the insurance coverage has been obtained.
(e)	The obligor's failure to provide written proof of insurance as described by subsection (d) of this section shall be grounds for contempt of court.
(f)	The obligor shall provide written notice to the obligee of any change in the applicable insurance coverage.
(g)	When the insurance coverage is provided through an employer, union, or professional association and the obligor's employment is terminated, or the insurance coverage is terminated, the employer, union, or professional association within 10 days of the termination date, shall notify the obligee of the termination and of any available policy conversion privileges.
(h)	The obligor's employer, union, professional association, or insurer shall release to the obligee, upon written request, any information on the insurance coverage that the employer, union, professional association, or insurer is authorized to release to the obligor.
(i)	When a court order for medical support is in effect, the signature of the custodial party of the insured dependent child shall be a valid authorization to the insurer for purposes of processing an insurance reimbursement payment to the provider of the medical services to whom benefits have been assigned by the custodial party or to the custodial party if he has paid the provider of the medical services.  In the event that both the custodial party and noncustodial party submit to the insurer a claim for reimbursement with respect to the same medical service, and benefits have not been assigned to the provider of medical services, the insurer shall reimburse the party who made the payment to the provider of the medical service.
(j)	An obligor who fails to maintain the insurance coverage for the dependent child as ordered shall be liable to the obligee for any medical or dental expenses incurred from the date of the court order.  Proof of failure to maintain the insurance coverage as ordered constitutes a showing of changed circumstances by the obligee pursuant to G.S. 50-13.7 and provides a basis for modification of the obligor's child support order.
(k)	When a written agreement between a custodial party and a noncustodial party, rather than a court order, imposes a duty upon one party to provide medical support for a dependent child through insurance coverage and that agreement authorizes the other party to have access to information pertaining to the insurance coverage, to submit claims for purposes of processing insurance reimbursement payments, or both, then that agreement shall be valid authorization to an insurer, employer, union, or professional association for purposes of releasing information or processing claims pursuant to this section.  In the event that both the custodial party and noncustodial party submit to the insurer a claim for reimbursement with respect to the same medical service, and benefits have not been assigned to the provider of medical services, the insurer shall reimburse the party who made the payment to the provider of the medical service."
Sec. 2.  This act shall become effective October 1, 1989.