On occasion, an employer may receive a court order directing the employer and/or plan administrator to enroll an employee’s child(ren) listed in the Order in one or more of its benefit programs, including medical, dental, vision, prescription drug, mental health and other benefit programs. An Order can be received directly from a Court, or by way of a National Medical Support Notice (NMSN) form issued by a State Child Support Agency authorized to enforce medical child support orders.
In late March, 2011, the National Office of Child Support Enforcement (OSCE) issued a revised model NMSN form to be used by state agencies. The NMSN is a two-part form that is sent to the employer. Part A is the Notice to Withhold for Health Coverage, and Part B is the Medical Support Notice to the Plan Administrator. The revised model NMSN form made several clarifying changes to Part A; there were no changes made to Part B.
Highlights of some of the revisions to Part A include:
- The language in Box 2 was revised to make the relevant state agency aware of when an employer does not offer group insurance to any of its employees, regardless of whether the employer contributes a dollar amount toward the premium.
- Check box numbers 6 and 7 have been added to the form:
- Box 6 requires information relating to any waiting period that exceeds 90 days.
- Box 7 requires the date the employer sent Part B of the NMSN form to the plan administrator.
- Employers may now view the NSMN instructions on-line via OSCE website. Some state agencies may continue to provide the form in paper format until they have had a chance to implement changes of the revised NSMN form.
The list of all changes made to Part A, as well as a link to the revised model NMSN form can be viewed on the OSCE website.
The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations.
As required by U.S. Treasury rules, we inform you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this Benefit Beat is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any penalties that may be imposed by the Internal Revenue Service.