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HB 1241

CHILDREN/SUPPORT: Directs insurers to conduct data matches and to withhold and remit certain insurance and settlement payments to satisfy child support obligations (EN INCREASE SG RV See Note)

2026 Regular Session Introduced by Gabe Firment

Insurers must data-match with DCFS and withhold and remit qualifying insurer payments to cover delinquent child support identified by DCFS.

Effective date: 07/01/2027.
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WeVote Research Nonpartisan
Bill Summary · HB 1241

Summary of HB 1241 (2026, Louisiana)

Title

CHILDREN/SUPPORT: Directs insurers to conduct data matches and to withhold and remit certain insurance and settlement payments to satisfy child support obligations

Purpose and main intent

  • Require insurers doing business in Louisiana to participate in data matching with the Department of Children and Family Services (DCFS) and to withhold and remit certain qualifying insurance payments to satisfy child support obligations identified by DCFS.
  • Strengthen enforcement of child support by ensuring that insurer-paid settlements and other qualifying payments to claimants are reduced when the claimant owes past-due child support.

Key provisions and changes

Definitions (Section A)

  • Clarifies terms used in the act, including:
    • "Claimant": person with a bodily injury claim, or receiving disability or workers’ compensation benefits.
    • "Claim for bodily injury": excludes uninsured/underinsured motorist or med pay claims.
    • "Insurance claim data collection organization": an entity/database that helps process claims and coordinates with child support entities.
    • "Office": the Louisiana DCFS Office of Child Support.
    • "Qualifying payment": a payment from an insurer for general damages or lost wages, over $500, intended directly to the claimant (not to a third party), and scheduled after a data match.

Insurer obligations (Section B, C, D)

  • Insurers must conduct data matches with DCFS (via the office of child support) before issuing any qualifying payment.
  • Data matching may be done directly or through an insurance claim data collection organization, federal/ state child support enforcement systems, or through the office, using a secure process that respects privacy laws (including HIPAA).
  • Insurers must provide minimum identifying information about claimants to DCFS to determine debt status (name, address, DOB; SSN/TIN only if already in records and needed).

Withholding and remittance of payments (Section E)

  • If DCFS identifies a debt, the insurer must withhold the specified amount from the qualifying payment and remit to DCFS within 20 days of receipt of notification.
  • Prioritization: DCFS must have priority over certain other claims/expenses (e.g., liens, attorney fees, medical expenses related to the claim, funeral expenses) when applying withholdings.

Confidentiality and use of information (Section G)

  • Information exchanged between insurers and DCFS is confidential and used only for child support enforcement and administration.
  • Information may be disclosed only as necessary for data matching.
  • Good-faith disclosures or actions are protected from civil/criminal liability.

Administrative and timing notes (Sections H, I, J)

  • Insurers cannot delay disbursement of qualifying payments due to compliance; if notice arrives after disbursement, the payment is not subject to withholding.
  • For periodic payments, withholdings apply to payments scheduled after notice; earlier payments are not withheld retroactively.
  • If periodic payments will be issued after notice, insurers must verify debt prior to each qualifying payment.
  • The Louisiana Insurance Commissioner can promulgate rules; DCFS maintains child support enforcement authority.

Reimbursement and enforcement (Section K implied)

  • DCFS may reimburse insurers for reasonable administrative costs related to data matching and compliance (though specific amounts are not enumerated here).
  • The act adds enforcement and rulemaking authority to the Louisiana Insurance Commissioner.

Affected parties

  • Insurers doing business in Louisiana that issue qualifying payments (as defined).
  • Claimants receiving qualifying payments who owe past-due child support.
  • Louisiana Department of Children and Family Services (DCFS), Office of Child Support.
  • Insurance claim data collection organizations, and related enforcement databases/networks.

Effective date and timeline

  • Effective date: July 1, 2027.
  • Pre-issuance data matching and withholding framework to be implemented prior to issuing qualifying payments after notice of debt (with respect to notices received).

Additional notes

  • The bill adds protections for insurers and other entities acting in good faith.
  • Privacy protections are emphasized to balance child support collection with individual privacy rights.
  • The bill preserves DCFS’s authority over child support enforcement and directs insurers to integrate with the state’s enforcement framework.

If you’d like, I can provide a one-page quick reference or a comparison with existing child support interception programs in Louisiana.

Compiled from official sources — confirm details with the bill’s official record.

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