WASHINGTON -- Despite court orders, only one-third of the nearly 4 million noncustodial parents actually put their children on their employers' health insurance plans. Federal officials now are taking steps to simplify the process in hopes of increasing compliance.
The Department of Health and Human Services was proposing regulations Monday that would give states one simple form to send to employers after a court orders a parent to enroll a child in the parent's health insurance plan.Also, the Department of Labor was directing the health plans it oversees to enroll these children when these forms are used.
HHS Secretary Donna Shalala said she is frustrated that private insurance often is available for children but is not used.
"That's why having a simple standard means to obtain health insurance from noncustodial parents is so important," she said in a statement today.
Meanwhile, a group of experts is working to develop a plan for children whose parents do not have health insurance at work. The idea is to enroll them in Medicaid or the Children's Health Insurance Program if they are eligible. Both programs are available to far more people than those who actually sign up.
That expert group also helped develop the single form for parents who do have insurance offered to dependents.
Historically, there have been problems with parents, their employers and their insurance companies, said Paula Roberts of the Center for Law and Social Policy, who serves on the National Medical Support Working Group.
"Individual health plans and insurers and providers all have their own idea what information they want before they'll put them on the (health insurance) plan," she said. "It just takes forever."
Under the new system, one standard form will be used across the country. States will send them to employers, who will be required to pass them onto insurers as long as they offer dependent coverage. The employer then sends the second part of the form to the insurance company, which is ordered to sign up the children.
"This tells the insurer: You have no discretion here," Roberts said.
She said she was optimistic the system will work because it was developed with input from employers and insurance companies, who are represented in the working group.
Geraldine Jensen, president of the Association for Children for Enforcement of Support, said the forms should help sign more children up, though there may still be problems getting them the health care they need.
Youngsters whose parents lack insurance should be steered to government programs, she said.
"It is a good thing," she said. "It needs to be a little better, but it's good."