HB177 Alabama 2025 Session

Summary

Primary Sponsor

Ben RobbinsRepresentative

Republican

Session

2025 Regular Session

Title

Medicaid; Requiring Employer-provided insurance as primary payor of eligible child's health care

Summary

HB177 would require Medicaid-eligible children to be enrolled in employer-provided health insurance when available and give Medicaid new tools to recover costs from parents who don't comply.

What This Bill Does

If an approved child has employer-provided coverage available, the custodial parent must enroll the child in that coverage. Courts may order noncustodial parents with child-support obligations to provide or pay for the child's health coverage. If a parent fails to enroll or maintain coverage, Medicaid can sue to recover payments made for the child's care. The bill also allows information sharing between employers and Medicaid to enforce coverage and lets Medicaid seek reimbursement and liens for services that would have been paid by private insurance. It becomes effective October 1, 2025.

Who It Affects

• Custodial parents of Medicaid-approved children, who must enroll the child in employer-provided health coverage when available.
• Noncustodial parents with child-support obligations, who may be ordered to provide or purchase health coverage for the child and face penalties or recovery actions if they do not.

Key Provisions

• Custodial parents must elect and enroll the Medicaid-approved child in the child's employer-provided health coverage when such coverage is available.
• Courts may order noncustodial parents to provide health coverage for the child or to purchase coverage.
• If a parent fails to enroll the child in available coverage, the Medicaid agency can pursue reimbursement from the parent for the costs paid.
• Parents are deemed to authorize employers to release information to Medicaid to enforce coverage.
• Medicaid can seek reimbursement and may place liens or garnishments to recover costs paid for the child’s care when private coverage would have paid.
• Medicaid will administer claims consistent with Medicaid as payor of last resort.
• The act takes effect on October 1, 2025.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Insurance