Issue:
The Secretary of Health and Human Services (HHS), through the FPLS, should have the authority to compare information maintained by insurers (or their agents) concerning insurance claims, settlements, awards, and payments to information regarding child support obligors who owe past-due child support. Any information resulting from such a match would be furnished to the appropriate state IV-D agency in order to secure payment of past-due child support. Through this provision, all state IV-D agencies would have access to an additional means of locating potential income or assets of child support obligors who owe past due support.
Background:
Often states are unable to access the databases that contain insurance and settlement information, especially when the information is related to an interstate case or when an insurance company is located in another state. During the past several years, states through consortiums, such as the Child Support Lien Network, have been very successful in obtaining this type of information. Matches in which some states are already participating have provided returns of $500 - $5000 per match or more, easily offsetting the cost of participating, and providing additional support to families. In order to offer this additional tool to all states, the proposal would permit the Secretary of HHS to administer an insurance claims matching program. Under the proposal, the Federal Offset File (individuals who owe past-due support) would be matched against insurance databases to identify individuals who have pending insurance claims and settlements. The Secretary would notify states of those obligors that have pending insurance claims and settlements so that states could take enforcement actions to freeze and seize these payments. Participation by both the states and insurance companies would be voluntary.
NCCSD Statement in Support:
NCCSD supports a federal match with personal injury insurance data provided by insurance carriers. The proposal should ensure that states can opt out if they do not have the resources to participate or if the state is already matching obligors owing past due support to insurance data-bases via other methods.
NCCSD recommends that the costs for states are kept at a reasonable level. A benefit that should accrue from all or most states participating in a uniform federal match, rather than a private one, is the economies of scale which should result in a reduction in the cost of the match for states.
NCCSD also recommends that all applicable federal statutes be reviewed and revised if necessary to ensure that states have the appropriate authorization to lien and levy across state lines. In addition, any agreements with insurance companies should guarantee that such companies will honor all states levies, even if the insurance company is based in a different state from the one which is levying the proceeds.