3.__Implementation of orders.__A health insurance withholding order may be implemented by the department for a recipient of the department's support enforcement services, by a support obligee who does not receive the department's support enforcement services or by a support obligor.__A health insurance withholding order is implemented by serving an attested copy of the order upon the obligor's employer or other provider of insurance.

§2702.__Provisions of the health insurance withholding order

A health insurance withholding order must provide for the immediate enrollment of the child, if otherwise eligible, in the employer health plan and for withholding from the obligor's income the obligor's share, if any, of the cost of the health care coverage for the child enrolled as provided in section 2106. Enrollment and withholding are effective from the date of the support order. The withholding order must include:

1. Dependent child's name.__The name, date of birth and social security number for each dependent child;

2.__Department case number.__The obligor's department support enforcement case number, if applicable, and if known to the court;

3.__Employer or other provider of insurance; instructions.__An instruction to the employer or other provider of insurance that, upon receipt of a copy of the health insurance withholding order, the employer or other provider of insurance shall implement the health insurance withholding order immediately; and

4. Limitation on withholding.__A notice that the amount of the withholding may not exceed the limitations imposed by 15 United States Code, Section 1673(b).

§2703.__Employer or other provider of insurance; duty

An employer or other provider of insurance of an obligor named in a health insurance withholding order issued under this subchapter shall comply with the provisions of the withholding order upon receipt of a copy of the order.__The balance of income due an obligor after withholding must be paid to the obligor on the day the obligor is usually paid.

§2704.__Service of process

Service under this subchapter may be by certified mail or in accordance with the requirements of the Maine Rules of Civil Procedure, Rule 4.__The department may serve a health insurance withholding order as provided in section 2254.

§2705.__Duration of withholding

A health insurance withholding order is binding upon an obligor's employer or provider of insurance until:

1.__Court order.__The court orders withholding ended;

2.__Release by obligee.__If the health insurance order was implemented by the obligee as a private withholding action, the obligee releases the employer or provider of health insurance from the terms of the order in writing; or

3.__Release by department.__The department releases the employer or provider of health insurance from the terms of the order in writing.

The department, or obligee if the obligee implemented the withholding order as a private action, shall issue promptly a release of the withholding order in all cases in which there is no longer a health insurance obligation.__The department or obligee, as applicable, shall refund to the obligor amounts withheld improperly because a release is not issued timely.

§2706.__Priority of order

A health insurance withholding order issued under this subchapter has priority over any previously filed attachment, execution, garnishment or assignment of income that is not made for the purpose of enforcing or paying child or spousal support.

§2707.__Notice of termination

When an employer or other provider of health insurance is unable to continue withholding from an obligor's income because the relationship between the employer or other provider of insurance and the obligor ends, the employer or other provider of insurance shall send the department a written notice of termination within 15 days of the termination of the relationship.__The notice must include:

1.__Obligor's identification.__The obligor's name, last known address and social security number;

2.__Department case number.__The obligor's department support enforcement case number;

3.__Termination date.__The date of termination of the relationship; and

4.__New employer or other provider of insurance.__If known, the name and address of a new employer or other provider of insurance of the obligor.

§2708.__Employer or other provider of insurance; liability

Upon service of a health insurance withholding order, an employer or other provider of insurance is liable for any medical expenses that would have been covered by the insurance if implemented.__The department, or obligee if the obligee implemented the health insurance withholding order as a private action, may maintain a civil action against the employer or other provider of insurance if the employer or other provider of insurance does not implement the insurance withholding order and for the imposition of any of the civil penalties provided for in this section, plus attorney's fees and court costs.

1.__Failure to implement.__An employer or other provider of insurance who knowingly fails to implement a health insurance withholding order commits a civil violation for which a forfeiture not to exceed $100 for each failure to implement may be adjudged.

2.__Failure to notify.__An employer or other provider of insurance who knowingly fails to send the notification required by section 2707 commits a civil violation for which a forfeiture not to exceed $100 may be adjudged.

3.__Discrimination against obligors.__An employer or other provider of insurance who discharges from employment or refuses to employ an obligor or who takes disciplinary action against an obligor or who otherwise discriminates against the obligor because of the existence of a health insurance withholding order or the obligations imposed upon the employer or other provider of insurance by the order is subject to a civil penalty not to exceed $5,000, payable to the State, to be recovered in a civil action.__The employer or other provider of insurance is also subject to an action by the obligor for compensatory and punitive damages for those actions, plus attorney's fees and court costs.

§2709.__Employer or other provider of insurance; fee

The commissioner may establish by rule a fee for the administrative cost of each withholding that an employer or provider of insurance may deduct in addition to the amount withheld for support.

§2710.__Attested copies

The clerk of the court shall send to the department an attested copy of each order in which a health insurance obligation is established or modified.

§2711.__Application for services

The department shall furnish and the clerk of the court shall make application forms and blank contracts for the department's support enforcement services available to all individuals awarded child support.__The department shall also furnish the clerk with forms that enable an individual to refuse services.__The clerk shall send to the department all application forms, contracts and refusal forms submitted, together with the attested copies of the orders that the clerk is required to send the department under section 2664.__Each individual who is awarded child support by the court must complete either the application form and contract or the form for refusal of services.__The court shall inform a person who is awarded child support that that person must complete either the application and contract for services or the form to refuse services and submit it to the clerk.

§2712.__Immunity

An employer or other provider of insurance who honors a health insurance withholding order under this subchapter may not be held liable by the obligor for income withheld in compliance with the order.

§2713.__Other remedies

A health insurance withholding order issued under this subchapter is an additional remedy to enforce a support order and does not limit the use of other legal remedies that may be available.

§2714.__Rulemaking

The department shall adopt rules to implement its responsibilities under this subchapter.__Rules adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter II-A.

§2715.__Health insurance withholding orders issued by other states

1.__Use of other state's health insurance withholding law.__ When an employer or other provider of insurance receives a health

insurance withholding order issued by another state, the employer or other provider of insurance shall apply the health insurance withholding law of the state of the obligor's principal place of employment when determining:

A.__The fee of the employer or other provider of insurance for processing a health insurance withholding order;

B.__The maximum amount permitted to be withheld from the obligor's income;

C.__The time by which the employer or other provider of insurance must implement the health insurance;

D.__The priorities for health insurance withholding and allocation for multiple child support obligees; and

E.__Any health insurance withholding terms or conditions not specified in the order.

2.__Compliance.__An employer or other provider of insurance who complies with a health insurance withholding order that is regular on its face is not subject to civil liability to any individual or agency for conduct in compliance with the order.

§2716.__Standard format of order

A health insurance withholding order must conform with standard formats prescribed by the federal Secretary of Health and Human Services.

§2717.__Automated issuance of health insurance withholding order

The department may issue a health insurance withholding order electronically if the employer or other provider of insurance has the ability to receive the order in that manner.

SUMMARY

This bill amends the Maine Revised Statutes, Title 19-A, section 1652 to replace the reference to municipalities providing maintenance. This reflects the change in responsibility since the statute was first written. At that time, municipalities were responsible for providing aid to families. That responsibility has been shifted to the State with the payment of temporary assistance for needy families.

The bill adds a provision to the court's enforcement of support orders to provide for the use of a health insurance

withholding order, which will be in the form of the National Medical Support Notice mandated by the Federal Government under 45 Code of Federal Regulations, Section 303.32. Federal law mandates that completion of the National Medical Support Notice is equivalent to the execution of a qualified medical support order and must be honored as such by all insurance providers covered under the federal Employee Retirement Income Security Act of 1974. This will simplify processing for all concerned and most importantly enhance health care coverage for children.

The bill amends the Probate Code to allow the Commissioner of Human Services to designate employees of the Department of Human Services who are not attorneys to represent the department in Probate Court when the department is providing child support enforcement services.