Alabama 2025 Regular Session

Alabama House Bill HB177 Compare Versions

Only one version of the bill is available at this time.

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1	1	HB177INTRODUCED
2	2	Page 0
3	3	HB177
4	4	X2A6Z7E-1
5	5	By Representatives Robbins, Underwood
6	6	RFD: Ways and Means General Fund
7	7	First Read: 05-Feb-25
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12	12	5 X2A6Z7E-1 02/04/2025 JC (L)lg 2024-2144
13	13	Page 1
14	14	First Read: 05-Feb-25
15	15	SYNOPSIS:
16	16	Under existing law, when a child who is approved
17	17	for Medicaid is also covered by a parent's private
18	18	health insurance, the private health insurance must pay
19	19	before Medicaid will pay.
20	20	This bill would require a custodial parent of a
21	21	child covered by Medicaid to put the child on the
22	22	health care insurance offered by an employer when
23	23	coverage for the child is also available. If a
24	24	noncustodial parent is under an order to pay child
25	25	support, the court may also order that the child be
26	26	included on the parent's employer-provided health care
27	27	insurance or order the parent to purchase coverage for
28	28	the child.
29	29	If a parent fails to include a child approved
30	30	for Medicaid on available health care coverage provided
31	31	by an employer or as otherwise ordered by a court, this
32	32	bill would authorize the Medicaid agency to recover any
33	33	health care payments made for the child by a civil suit
34	34	against the parent.
35	35	This bill would further provide that a parent
36	36	automatically authorizes any employer to release
37	37	information to the Medicaid agency when a parent's
38	38	child is approved by either program for coverage.
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66	66	28 HB177 INTRODUCED
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68	68	A BILL
69	69	TO BE ENTITLED
70	70	AN ACT
71	71	Relating to Medicaid; to require that a child who is
72	72	approved for Medicaid receive health care coverage through a
73	73	parent's insurance in certain circumstances, or that a parent
74	74	under a child support order provide health care coverage; and
75	75	to further provide for the right to reimbursement for Medicaid
76	76	for benefits paid on behalf of a child who would be eligible
77	77	for coverage under a parent's employer-provided insurance.
78	78	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
79	79	Section 1. (a) For the purposes of this section, the
80	80	following terms have the following meanings:
81	81	(1) AGENCY. The Medicaid Agency of the State of Alabama
82	82	and any contractor of the agency.
83	83	(2) APPROVED CHILD. An individual who is under 19 years
84	84	of age and is approved for health coverage under Medicaid.
85	85	(3) CUSTODIAL PARENT. A natural or adoptive parent of
86	86	an approved child who shares the same household with the child
87	87	as reported on an application for health coverage approved by
88	88	the agency.
89	89	(4) EMPLOYER-PROVIDED HEALTH COVERAGE. Health coverage
90	90	that is made available by an employer to an employee.
91	91	(5) HEALTH COVERAGE. Any plan, policy, or contract
92	92	issued, delivered, or renewed in this state that provides
93	93	health coverage, including payment for hospital or physician
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123	123	health coverage, including payment for hospital or physician
124	124	care, treatment, therapy, drugs, equipment, or any other
125	125	medical expense, and which is offered as a benefit of
126	126	employment, regardless of whether the plan, policy, or
127	127	contract is provided by a health care insurer, health
128	128	maintenance organization operating pursuant to Chapter 21A of
129	129	Title 27, Code of Alabama 1975, health care service plan
130	130	operating pursuant to Article 6, Chapter 20 of Title 10A, Code
131	131	of Alabama 1975, or any other person that pays for, purchases,
132	132	or reimburses health care services.
133	133	(6) NONCUSTODIAL PARENT. A natural or adoptive parent
134	134	of an approved child who is subject to a court order to
135	135	provide child support.
136	136	(b) A custodial parent of an approved child shall elect
137	137	employer-provided health coverage of the child when it is
138	138	available to the parent and the terms of the employer-provided
139	139	health coverage so provide, unless the approved child is the
140	140	subject of a court order to provide health coverage.
141	141	(c) A court having jurisdiction over a noncustodial
142	142	parent, in its discretion, may order the parent to provide
143	143	health coverage to an approved child when the court determines
144	144	from the State of Alabama Unified Judicial System
145	145	Child-Support-Obligation Income Statement/Affidavit form, or
146	146	other evidence, that the parent is receiving income in an
147	147	amount sufficient to include the approved child under
148	148	available employer-provided health coverage or under health
149	149	coverage purchased through the federal Health Insurance
150	150	Marketplace.
151	151	(d)(1) A parent of an approved child shall report a
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179	179	84 HB177 INTRODUCED
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181	181	(d)(1) A parent of an approved child shall report a
182	182	change in status to the agency, as appropriate, when one of
183	183	the following occurs:
184	184	a. Commencement of eligibility of the approved child
185	185	for employer-provided health coverage and the parent's
186	186	election of the coverage.
187	187	b. Discontinuation of coverage of the approved child
188	188	caused by a change in the terms of the employer-provided
189	189	health coverage.
190	190	c. Separation of the parent from employment for any
191	191	reason which results in a discontinuation of employer-provided
192	192	health coverage of the approved child.
193	193	d. Commencement or termination of a court-ordered
194	194	obligation that a noncustodial parent provide health coverage
195	195	for an approved child.
196	196	(2) Nothing in this section shall be construed to
197	197	require a custodial parent to continue health coverage for an
198	198	approved child under the federal Consolidated Omnibus Budget
199	199	Reconciliation Act when the parent is separated from
200	200	employment.
201	201	(3) Nothing in this section shall be construed to
202	202	disqualify an approved child from coverage under Medicaid when
203	203	a noncustodial parent fails to comply with a court order under
204	204	subsection (c).
205	205	(e) If an approved child has employer-provided health
206	206	coverage through a custodial parent, or health coverage
207	207	through a noncustodial parent under court order, the agency
208	208	shall administer claims made on behalf of the approved child
209	209	consistent with the status of Medicaid as payor of last resort
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237	237	112 HB177 INTRODUCED
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239	239	consistent with the status of Medicaid as payor of last resort
240	240	under the respective rules, policies, and practices in force.
241	241	(f)(1) If Medicaid pays for hospital or physician care,
242	242	treatment, therapy, drugs, equipment, or any other medical
243	243	expense on behalf of an approved child who would be covered
244	244	under available employer-provided health coverage or under
245	245	other court-ordered health coverage that has not been elected
246	246	by a parent, the agency may pursue reimbursement from the
247	247	parent of the amounts paid as a collectible debt up to civil
248	248	suit in a court of competent jurisdiction in the county in
249	249	which the parent resides.
250	250	(2) In addition to any means provided by law for
251	251	recovery and satisfaction of a civil judgment, in a case in
252	252	which a judgment is entered in favor of the agency, monies
253	253	subject to garnishment shall include any amount owed by the
254	254	State of Alabama to the parent for overpayment of personal
255	255	income tax.
256	256	(3) In any civil action brought by the agency to
257	257	recover amounts paid, a parent may assert as a defense that
258	258	the available employer-provided health coverage or other
259	259	court-ordered health coverage would not have paid for the
260	260	specific hospital or physician care, treatment, therapy,
261	261	drugs, equipment, or any other medical expense that Medicaid
262	262	paid.
263	263	(g) In any case in which Medicaid pays for hospital or
264	264	physician care, treatment, therapy, drugs, equipment, or any
265	265	other medical expense on behalf of an approved child who is
266	266	the subject of a court order to provide health coverage with
267	267	which the noncustodial parent has failed to comply, upon
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297	297	which the noncustodial parent has failed to comply, upon
298	298	notice of a claim received from the federal Centers for
299	299	Medicare & Medicaid Services (CMS), CMS shall have a lien on
300	300	the amount recovered through enforcement by the agency of the
301	301	remedy provided in subdivision (f)(1).
302	302	(h) Any parent of an approved child, including a
303	303	noncustodial parent, is deemed to authorize any employer to
304	304	release to the agency all information necessary to enforce
305	305	this section.
306	306	(i) The agency and the Department of Revenue may adopt
307	307	rules necessary to implement and enforce this section.
308	308	Section 2. This act shall become effective on October
309	309	1, 2025.
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