Alabama‘s legislature is considering a significant proposal. Alabama House Ways and Means General Fund Committee has recently passed House Bill 177. The bill empowers the Medicaid agency in Alabama to bring legal actions against parents who fail to enroll children into employer-sponsored insurance plans. This initiative aims to ease the financial burden of Alabama’s Medicaid by making sure that those families who have access to private coverage use it as their primary source.
Ben Robbins, state representative from Pennsylvania, is the sponsor of this bill. This bill allows judges in domestic and custody cases to require parents to enroll children into employer-provided insurance when this option is readily available. The Alabama Medicaid agency could sue a parent if they refused to enroll their child in employer-provided health insurance.
Medicaid and the Importance to Addressing Funding
Medicaid provides health insurance to more than one million Alabamians. A large portion of these are children. It is funded jointly by both the federal and state governments and provides a safety net to families with low incomes who don’t have private health insurance. State lawmakers claim that parents are disproportionately relying upon Medicaid, despite the fact they have viable options for employer-sponsored insurance.
Rep. Robbins said that the goal of this bill is to make Medicaid a payer-of-last resort and to ensure those who have private insurance use it before Medicaid. He said during a hearing of a committee that parents who have employer-provided health insurance should enroll children into those plans in order to reduce the need for Medicaid.
House Bill 177: Key provisions
According to this proposal, parents with custody of children who are eligible for Medicaid and have employer-sponsored insurance will be required to enroll them in these plans. A judge could also order non-custodial parent who is obligated pay child support to follow suit.
Medicaid’s ability to sue parents for non-compliance is an important part of this bill. A clause in the bill that allowed Centers for Medicare & Medicaid Services, or CMS to put a lien against any money recovered was removed by Kerry Underwood as part of an effort to keep the law aligned with both state and federal laws.
Alabama Medicaid, which is funded primarily by the federal government, serves 21% of its population. The state contributes a small portion. KFF reports that the federal government currently pays 73% for traditional Medicaid in Alabama.
The Proposed Legislation: Voices of Concern
Alabama Reflector, State Representative Ben Robbins (bill sponsor): This bill’s ultimate goal is to motivate noncustodial families who are financially capable to assume the responsibility of their children and give the state the ability to reimburse them.
Robin Hyden is the executive director of Alabama Arise and he spoke to The Alabama Daily News about: This bill was not intended to impact on all parents. I believe the worst case scenario is what the sponsor has said.
House Bill No. 177: What lies ahead?
After passing the House Ways and Means General Fund Committee the bill is now sent to the Alabama House of Representatives. The bill must pass the House and be signed by Kay Ivey, the Governor of Alabama.
Advocates, policymakers and families closely monitor and discuss the financial and legal implications this bill could have, especially for low-income households who might find it difficult to afford private health insurance. As the bill moves through the legislative process, the broader impacts on Medicaid enrollment and healthcare costs in Alabama will be key considerations. The potential impact on **employer-sponsored health insurance**, **Alabama Medicaid eligibility**, and **child support obligations** will be closely monitored.