§ 252E.5 — Effect of order on employer

Iowa § 252E.5

• Jurisdiction: Iowa
• Title VI: HUMAN SERVICES
• Ch. 252E: MEDICAL SUPPORT

Text

1. When the order has been forwarded to the obligor’s employer pursuant to section
252E.4, the order is binding on the employer and the employer’s insurer to the extent that the
dependent is eligible to be enrolled in the plan under the applicable terms and conditions of
the health benefit plan and the standard enrollment guidelines of the insurer. The employer
shall allow enrollment of the dependent at any time, notwithstanding any enrollment season
restrictions. If a provision of this section conflicts with a provision in the national medical
support notice, or in subsection 8, the provision in the notice and subsection 8 shall apply.
2. The employer shall forward a copy of the order to the insurer and request enrollment
of the dependent in the health benefit plan. If the obligor fails to apply to obtain coverage
for the dependent, the employer shall accept an application to enroll a dependent which has
been signed by the obligee or other legal custodian of a child or by the department. Within
sixty days of receipt of the order or within sixty days of receipt of application, whichever is
earlier, the insurer shall determine whether the dependent is eligible for enrollment under
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the plan and shall notify the employer of the dependent’s eligibility status. If more than one
plan is offered by the employer, the dependent shall be enrolled in the health benefit plan in
which the obligor is enrolled. However, if more than one plan is offered to the obligor, the
plan selected shall provide coverage which is accessible to the dependent.
3. The employer shall withhold from the employee’s compensation, the employee’s share,
if any, of premiums for the health benefit plan in an amount that does not exceed the amount
specified in the national medical support notice or order or the amount specified in 15 U.S.C.
§1673(b) and which is consistent with federal law. The employer shall forward the amount
withheld to the insurer.
4. Within thirty days of receipt of an order that requires an obligor to enroll a dependent
in a health benefit plan, the obligor’s employer shall provide the following information, as
applicable, regarding the enrollment status of the dependent to the obligor, the obligee, or
other legal custodian of the child, and the department:
a. That the dependent has been enrolled in a health benefit plan.
b. That the dependent is not eligible for enrollment and the reasons that the dependent is
not eligible to be enrolled.
c. That the order has been forwarded to the insurer and a determination of eligibility for
enrollment has not been made.
5. If the dependent has been enrolled in a health benefit plan, all of the following
information shall be provided:
a. The name of the insurer providing the health benefit plan.
b. The dependent’s effective date of coverage.
c. The health benefit plan or account number.
d. The type of health benefit plan under which the dependent has been enrolled,
including whether dental, optical, office visits, and prescription drugs are covered services.
Additionally, the response shall include a brief description of the applicable deductibles,
coinsurance, waiting periods for preexisting medical conditions, and other significant terms
or conditions which materially affect the coverage.
6. a. An employer shall not revoke enrollment or eliminate coverage for a dependent
unless the employer is provided with satisfactory written evidence that one of the following
conditions exists:
(1) A court or administrative order requiring coverage in a health benefit plan is no longer
in effect.
(2) The dependent is eligible for or will be enrolled in a comparable health benefit plan
which will take effect no later than the effective date of revocation of enrollment in the other
plan.
(3) The employer has eliminated dependent health coverage for all employees.
b. Nothing in this section requires an employer to maintain coverage for the dependent if
the premiums are no longer being paid by the obligor because the employer no longer owes
compensation to the obligor or because the obligor’s employment has been terminated and
the obligor has not elected to continue coverage.
c. If an order requiring that the obligor provide coverage under a health benefit plan for
the dependent has been forwarded to the obligor’s employer pursuant to section 252E.4, and
the obligor’s employment is terminated, the employer shall provide notice to the obligee and
the department within ten days of termination of the obligor’s employment.
7. If an order requiring that the obligor provide coverage under a health benefit plan for
the dependent has been forwarded to the obligor’s employer pursuant to section 252E.4,
and the employer’s health benefit plan is terminated either in its entirety or with respect
to the obligor’s insurance classification, or the employer has changed its insurer or become
self-insured, the employer shall provide notice to the obligee or other legal custodian of the
child and the department ten days prior to the termination or change in insurer.
8. If the department issues a national medical support notice to an employer or plan
administrator, all of the following shall apply:
a. The employer and plan administrator shall comply with the provisions in the notice.
b. The employer and the plan administrator shall treat the notice as an application by the
§252E.5, MEDICAL SUPPORT 8
department for health benefit plan coverage for the dependent to the extent such application
is required by the health benefit plan.
c. If the obligor named in the notice is not an employee of the employer, or if a health
benefit plan is not offered or available to the employee, the employer shall notify the
department, asprovidedinthenotice, withintwentybusinessdaysafterthedateofthenotice.
d. If a health benefit plan is offered or available to the employee, the employer shall send
the plan administrator’s portion of the notice to each appropriate plan administrator within
twenty business days after the date of the notice.
e. Upon notification from the plan administrator that the dependent is enrolled, the
employer shall either withhold and forward the premiums as provided in subsection 3, or
shall notify the department that the enrollment cannot be completed due to limits established
for withholding as provided in subsection 3.
f. If the plan administrator notifies the employer that the obligor is subject to a waiting
period that expires more than ninety days from the date of receipt of the notice by the plan
administrator or that the obligor is subject to a waiting period that is measured in a manner
other than the passage of time, the employer shall notify the plan administrator when the
obligor becomes eligible to enroll in the plan and that the notice requires enrollment in the
plan of the dependent named in the notice.
g. The plan administrator shall enroll the dependent, and if necessary to enrollment of the
dependentshallalsoenrolltheobligor, intheplanselectedinaccordancewiththisparagraph.
All of the following shall apply to the selection of the plan:
(1) If the obligor is enrolled in a health benefit plan that offers dependent coverage, that
plan shall be selected.
(2) If the obligor is not enrolled in a plan or is not enrolled in a plan that offers dependent
coverage, and if only one plan with dependent coverage is offered by the employer, that plan
shall be selected.
(3) If the obligor is not enrolled in a health benefit plan or is not enrolled in a health
benefit plan that offers dependent coverage, if more than one plan with dependent coverage
is offered by the employer, and if the notice is issued by child support services, all of the
following shall apply:
(a) If only one of the plans is accessible to the dependent, that plan shall be selected.
If none of the plans with dependent coverage is accessible to the dependent, child support
services shall amend or terminate the notice.
(b) If more than one of the plans is accessible to the dependent, the plan selected shall
be the plan that provides basic coverage for which the employee’s share of the premium is
lowest.
(c) If more than one of the plans is accessible to the dependent but none of the accessible
plans provides basic coverage, the plan selected shall be a plan that is accessible and for
which the employee’s share of the premium is lowest.
(d) If the employee’s share of the premiums is the same under all plans described in
subparagraph (b) or (c), child support services shall attempt to consult with the obligee when
selecting the plan. If the obligee does not respond within ten days of child support services’
attempt, child support services shall select a plan which shall be the plan’s default option, if
any, or the plan with the lowest deductibles and copayment requirements.
(4) If the obligor is not enrolled in a health benefit plan or is not enrolled in a health
benefit plan that offers dependent coverage, if more than one plan with dependent coverage
isofferedbytheemployer, andifthenoticeisissuedbythechildsupportenforcementagency
of another state, that agency shall select the plan as provided in paragraph “h”, subparagraph
(3).
h. Within forty business days after the date of the notice, the plan administrator shall do
all of the following as directed by the notice:
(1) Complete the appropriate portion of the notice and return the portion to the
department.
(2) If the dependent is or is to be enrolled, notify the obligor, the obligee, and the child
and furnish the obligee with necessary information. Provide child support services with the
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type of health benefit plan under which the dependent has been enrolled, including whether
dental, optical, office visits, and prescription drugs are covered services.
(3) If more than one health benefit plan is available to the obligor and the obligor is
not enrolled, forward plan descriptions and documents to the department and enroll the
dependent, and if necessary the obligor, in the plan selected by the department or in any
default option if the plan administrator has not received a selection from the department
within twenty business days of the date the plan administrator returned the national medical
support notice response to the department.
(4) If the obligor is subject to a waiting period that expires more than ninety days from
the date of receipt of the notice by the plan administrator or if the obligor has not completed
a waiting period that is measured in a manner other than the passage of time, notify the
employer, the department, the obligor, and the obligee. Upon satisfaction of the period or
requirement, complete the enrollment.
(5) Upon completion of the enrollment, notify the employer for a determination of
whether the necessary employee share of the premium is available.
(6) If the plan administrator is subject to the federal Employee Retirement Income
Security Act, as codified in 29 U.S.C. §1169, or is subject to the federal Child Support
Performance and Incentive Act of 1998, Pub. L. No. 105-200, §401, subsection (e) or (f), and
the plan administrator determines the notice does not constitute a qualified medical child
support order, complete and send the response to the department and notify the obligor, the
obligee, and the child of the specific reason for the determination.
9. This chapter does not preclude the exchange of required information between the
department and employers or insurers through electronic data transfer.