This article is published courtesy of the September 2009 Wisconsin Journal of Family Law newsletter, a publication of the State Bar Family Law Section.

Sept. 16, 2009 – Federal regulations require states to review their guidelines for setting child support at least once every four years. Wisconsin recently completed its four-year review and has submitted proposed rule changes to DCF 150, the Percentage of Income Standard, to the legislature. The new rule changes are expected to go into effect on Jan. 1, 2010. This article highlights the proposed changes.

Medical support

The federal government recently promulgated federal regulations governing the establishment and enforcement of medical support obligations in child support cases.¹ The new rules require that provisions for the establishment of medical support orders be a part of a state’s child support guidelines. Furthermore, the federal regulations require that a state’s guidelines address how parents will provide for their children's medical needs through health insurance or through cash medical support.

Prior to the most recent regulations, federal law required, among other things, that state guidelines must, at a minimum, provide for the child’s health care needs through health insurance coverage or other means.² Wisconsin Statutes require the court to assign responsibility for and direct the manner of payment for the children’s health expenses in addition to ordering child support.³ However, until now, neither state nor federal law prescribed how health care needs should be addressed. Under the proposed rules, health insurance will be deemed available at a reasonable cost if the cost does not exceed 5% of either parent’s gross income. The new medical support regulations apply to all child support orders, not just IV-D cases. Additionally, the obligation to provide medical support may also be enforced against a custodial parent if health care coverage is available to the custodial parent at a reasonable cost. In applying the 5% standard, the cost is the cost of adding the child or children to the existing coverage or the difference between self-only and family coverage.

A health insurance plan is considered to be accessible under the proposed rule if the plan’s service providers are located within 30 minutes or 30 miles of the child’s residence, with a greater distance allowed in some rural areas. If health insurance is not available at a reasonable cost, or not accessible to the children, a cash medical contribution may be required, which, under our proposed rules, would be a discretionary downward or upward modification to the child support amount of no more than 5% of a parent’s gross income to permit either parent to pick up coverage. In cases where insurance is available, the court may also order the non-insuring parent to contribute to the cost to enroll the children in a private health insurance plan.

If no private health insurance plan is available that meets the requirements of the rule, the court may nevertheless order either parent to enroll the child or children in a private health insurance plan as a deviation under s. 767.511(1m), or may order a parent to make a contribution to the cost of the other parent’s premium in a public health insurance program.⁴

Shared/split placement cases

The proposed rule provides a new method for determining the child support obligations of parents who have combinations of split and shared placement. In those cases, support is calculated using the pro-rata percentage standard for the total number of children for whom support is being established. The pro rata percentage is calculated by determining the appropriate percentage standard under DCF 150.03(1) for the total number of children and dividing by the total number of children.

2 children: 12.5% for each child

3 children: 9.67% for each child

4 children: 7.75% for each child   

5 children: 6.8% for each child

The monthly income available for child support of the noncustodial parent is multiplied by the appropriate pro-rata percentage for the number of children placed full time with the other parent. For the children who are in shared placement, the shared-time formula under DCF 150.04(2) is applied using the appropriate pro-rata percentage for the number of children for whom support is being established.

The split placement provisions in DCF 150.04(3) are also being revised to use a pro-rata percentage. So, for example, if there are two children, one with mom and one with dad, instead of using the current formula where each parent pays the other 17% for a total of 34% of their combined income, the new formula will use the 25% figure for two children and prorate it between the parents so that each pays the other 12.5%. This formula is consistent with the methodology for combination split and shared placement cases and ensures that the amount of support ordered is consistent regardless whether the children remain in one household or are split between two households.

The Department of Children and Families has hosted two informational meetings and two public hearings on the proposed rules. The rule will now be assigned to committees in both the Senate and Assembly where additional hearings may be held.

Anyone who would like additional information or has questions may contact me at connie.chesnik@wisconsin.gov or (608) 267-7295.

Constance M. Chesnik is an attorney with the Wisconsin Department of Workforce Development. She has advised the child support program for 25 years and is a frequent lecturer and author on child support-related issues. She is a member of the state and national Child Support Enforcement associations.

This article is published courtesy of the Summer 2009 edition of the Wisconsin Family Law Journal, published by the State Bar Family Law Section. The State Bar offers its members the opportunity to network with other lawyers who share a common interest through its 26 sections. Section membership includes access to newsletters, email lists to facilitate information sharing, and other resources 

Endnotes

45 CFR 303.31 Federal Register: July 21, 2008 (Volume 73, Number 140)

45 CFR 302.56.

s. 767.513 Wis. Stat.