Compliance Guidance for Qualified Medical Child Support Orders
Qualified Medical Child Support Orders (QMCSOs) occur very frequently in divorce cases and often times, they require things that cannot be done, or terms with which the plan cannot comply. We know that ERISA provides that a QMCSO can require plans to extend coverage to children. However, it is not uncommon for the court or regulatory agency (or even the attorney negotiating the divorce settlement) to daft orders that are not "qualified." Qualified means that it satisfies the provisions of the federal code and regulations that make it a valid instruction to the plan.
On December 11, 2008, the U.S. Department of Labor issued Compliance Guidance for Qualified Medical Child Support Orders. You can get a copy here. It is rather lengthy but it does lay out in specific detail those things that have to be in a QMCSO for it to be valid, and what things cannot be included. It also clearly reminds everyone that it is the responsibility of the plan administrator to determine whether or not the order is "qualified." It is not enough for the parties to agree or for a court or agency to simply declare something will happen. The plan administrator, who has the authority to operate the plan, must confirm that it is correct. If not, the parties can be given an opportunity to correct it so that it would be "qualified."
If you have issues dealing with continuing health coverage for dependent children, whether you are a plan administrator, an attorney, a parent or a judge, it would be worthwhile to review this guidance to see how it applies to plans and to help you understand what "qualified" really means in the benefits world.
