The JLARC I-900 Subcommittee for SAO Performance Audits convened on June 4, 2025, to discuss critical issues surrounding the Department of Child Support (DCS) and its handling of insurance claims related to past due child support.
The meeting began with a presentation highlighting that DCS learns about only one in ten insurance claims through informal channels. This statistic raises concerns about the effectiveness of the current reporting system, as many claims may not be reported within the legally required ten-day window. The implications of this delay could mean that families entitled to support are missing out on significant financial assistance.
Further discussion revealed that additional claims, potentially amounting to substantial sums, may have been paid to individuals who owe past due child support without DCS's knowledge. With the average claim contributing approximately $7,300 towards these obligations, the financial impact on families could be considerable.
The subcommittee also addressed the challenges DCS faces in informing insurers about the mandatory reporting requirements established by the state's child support insurance interlock match law. A significant barrier identified was the lack of a comprehensive list of insurers and their contact information, which hampers DCS's ability to ensure compliance with the law.
In conclusion, the meeting underscored the need for improved communication and reporting mechanisms between DCS and insurance companies to enhance the collection of past due child support. The subcommittee plans to explore solutions to these challenges in future sessions, aiming to better support families in need.