Medicaid Could Sue Parents Over Kids’ Health Insurance Under New Bill

An Alabama House committee has approved a bill that would grant Medicaid the authority to sue parents who fail to enroll their children in available employer-sponsored health insurance.

The legislation, House Bill 177, seeks to reduce the financial burden on the state’s Medicaid program by ensuring that parents who have access to private insurance use it as the primary coverage for their children.

The bill, sponsored by State Representative Ben Robbins, allows judges in custody and domestic relations cases to order parents to enroll their children in employer-provided insurance when available. If a parent refuses, Medicaid would have the legal right to seek reimbursement through civil lawsuits.

“It’s time for deadbeat dads to step up and take responsibility for their children’s healthcare,” Robbins told Newsweek.

Why It Matters

Medicaid provides health coverage to more than a million Alabamians, including a significant number of children. The program, which is jointly funded by the state and federal government, is intended as a safety net for low-income individuals who lack access to private insurance. However, state lawmakers argue that some parents are unnecessarily relying on Medicaid despite having employer-sponsored coverage options.

Robbins emphasized that the goal of the bill is to ensure that Medicaid remains a payer of last resort.

“If you are a parent that has employer-provided insurance, you need to put your child on your insurance and not have more Medicaid,” Robbins said in a statement during committee.

What To Know

Under the proposed bill, custodial parents with access to employer-sponsored insurance would be required to enroll their Medicaid-eligible children in those plans. Noncustodial parents paying child support could also be ordered by a judge to do the same.

A key provision of the bill allows Medicaid to sue parents who fail to comply. While the bill originally contained a clause permitting the Centers for Medicare & Medicaid Services (CMS) to place a lien on any recovered funds, an amendment removed this provision.

State Representative Kerry Underwood introduced the amendment to ensure that any attempts to recover costs remain in compliance with state and federal law.

The Alabama Medicaid program, which serves roughly 21 percent of the state’s population, is predominantly funded by federal dollars, with the state contributing a smaller share.

The federal government currently covers 73 percent of the cost of traditional Medicaid in Alabama, according to data from KFF.

What People Are Saying

Ben Robbins, Alabama state representative and HB 177 sponsor, told Newsweek: “It’s not the taxpayers’ duty to bear that cost. I believe there is support among hardworking Alabamians to hold irresponsible parents accountable.”

Robin Hyden, executive director of Alabama Arise, told the Alabama Daily News: “I think the worst-case scenario reading of this bill is that it would not just impact child support, it would impact all parents, which I know the sponsor said is not the intent of this bill.”

What Happens Next

The bill has cleared the House Ways and Means General Fund Committee and now moves to the full Alabama House for consideration. If passed, it will need to be approved by the Senate and signed into law by Governor Kay Ivey before taking effect.

Advocacy groups and policymakers are expected to continue debating the bill’s financial and legal implications, particularly for low-income families who may struggle to afford private health insurance. The broader impact on Medicaid enrollment and state healthcare costs will be key considerations as the bill progresses through the legislature.

Update 02/20/25 4:09 p.m. ET: This story has been updated with comment from Robbins.