[Code of Federal Regulations]
[Title 45, Volume 2]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR303.32]

[Page 249-250]
 
                        TITLE 45--PUBLIC WELFARE
 
    CHAPTER III--OFFICE OF CHILD SUPPORT ENFORCEMENT (CHILD SUPPORT 
 
PART 303_STANDARDS FOR PROGRAM OPERATIONS--Table of Contents
 
Sec. 303.32  National Medical Support Notice.

    (a) Mandatory State laws. States must have laws, in accordance with 
section 466(a)(19) of the Act, requiring procedures specified under 
paragraph (c) of this section for the use, where appropriate, of the 
National Medical Support Notice (NMSN), to enforce the provision of 
health care coverage for children of noncustodial parents who are 
required to provide health care coverage through an employment-related 
group health plan pursuant to a child support order and for whom the 
employer is known to the State agency.
    (b) Exception. States are not required to use the NMSN in cases with 
court or administrative orders that stipulate alternative health care 
coverage to employer-based coverage.
    (c) Mandatory procedures. The State must have in effect and use 
procedures under which:
    (1) The State agency must use the NMSN to transfer notice of the 
provision for health care coverage of the child(ren) to employers.
    (2) The State agency must transfer the NMSN to the employer within 
two business days after the date of entry of an employee who is an 
obligor in a IV-D case in the State Directory of New Hires.
    (3) Employers must transfer the NMSN to the appropriate group health 
plan providing any such health care coverage for which the child(ren) is 
eligible (excluding the severable Notice to Withhold for Health Care 
Coverage directing the employer to withhold any mandatory employee 
contributions to the plan) within twenty business days after the date of 
the NMSN.
    (4) Employers must withhold any obligation of the employee for 
employee contributions necessary for coverage of

[[Page 250]]

the child(ren) and send any amount withheld directly to the plan.
    (5) Employees may contest the withholding based on a mistake of 
fact. If the employee contests such withholding, the employer must 
initiate withholding until such time as the employer receives notice 
that the contest is resolved.
    (6) Employers must notify the State agency promptly whenever the 
noncustodial parent's employment is terminated in the same manner as 
required for income withholding cases in accordance with Sec. 
303.100(e)(1)(x) of this part.
    (7) The State agency must promptly notify the employer when there is 
no longer a current order for medical support in effect for which the 
IV-D agency is responsible.
    (8) The State agency, in consultation with the custodial parent, 
must promptly select from available plan options when the plan 
administrator reports that there is more than one option available under 
the plan.
    (d) Effective date. This section is effective October 1, 2001, or, 
if later, the effective date of State laws described in paragraph (a) of 
this section. Such State laws must be effective no later than the close 
of the first day of the first calendar quarter that begins after the 
close of the first regular session of the State legislature that begins 
after October 1, 2001. For States with 2-year legislative sessions, each 
year of such session would be regarded as a separate regular session.

[65 FR 82165, Dec. 27, 2000]