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25-535 Enforcement of health insurance coverage

A. In a title IV-D case, a parent who is required by an administrative or court order to provide health insurance coverage for a child shall provide the department or its agent with the name of the health insurance coverage plan under which the child is covered, the effective date of the coverage, a description of the coverage, the name of the employer and any other necessary information, forms or documents related to the health insurance coverage as provided to all new members within thirty days after the support order is established.

B. If an administrative or court order requires a parent to obtain health insurance coverage for the parent’s child, the department or its agent may deliver by first class mail or electronic means to the obligated parent’s employer a medical support notice to enroll the child in an insurance program as prescribed by that order. The department or its agent shall use the medical support notice to enroll prescribed by the United States secretary of health and human services pursuant to 42 United States Code section 651. The employer shall deliver or mail by first class mail or by electronic means a copy of the medical support notice to enroll to the obligated parent within ten days after the employer receives the notice. The notice serves to enroll the child in the obligated parent’s health insurance coverage plan. That parent may contest the notice by filing a written request for an administrative review within ten days after the parent receives a copy of the notice from the employer. The department shall conduct an administrative review pursuant to section 25-522. If a parent contests the notice, the department or its agent shall notify the employer by first class mail or electronic means that the parent has contested the medical support notice to enroll. The employer shall send the employee contributions until the department notifies the employer to cease withholding. An administrative review is limited to determining if:

1. Medical support is unlawful or inconsistent with an administrative or court order.

2. A mistaken identity exists.

3. The responsible party pursuant to the order provides alternative coverage.

4. The other parent is already providing medical insurance for the child pursuant to court order.

5. The cost of the insurance coverage is reasonable as prescribed pursuant to section 25-320, subsection J.

C. If an employee on whom an income withholding order or order of assignment and notice is served is a new employee who is entered into the state directory of new hires pursuant to section 23-722.01, the department or its agent shall provide the medical support notice to enroll to the obligated parent’s employer within two days after the date of entry in the state directory of new hires unless the responsible party pursuant to the order provides alternative coverage.

D. If the obligated parent who is required by a court or an administrative order to obtain health insurance coverage changes employment and the new employer is known to the department or its agent, the department or its agent shall use the medical support notice to enroll to transfer notice to the new employer. Within thirty days after the obligated parent changes employment the obligated parent shall provide the department or its agent with the name of the health insurance coverage plan under which the child is covered, the effective date of the coverage, a description of the coverage, the name of the employer and any other necessary information, forms or documents related to the health insurance coverage as provided to all new members. Within twenty business days after it receives the medical support notice to enroll the employer shall transfer the notice to the appropriate health insurance plan that provides coverage for which the child is eligible.

E. A medical support notice to enroll has the same effect as an enrollment application that is signed by the parent.

F. If the employer does not have existing dependent coverage when it receives the medical support notice to enroll, the employer is not required to create this coverage. The employer shall notify the department or its agent of this fact within ten days after receiving the medical support notice to enroll.

G. Service by mail as authorized in this section is complete as to the employer when the mailing is received. Service by electronic means as authorized in this section is complete on transmission to the employer.

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