Bill
SB 5842
Insurers must minimize use of SSNs and report claimant info directly to Washington’s Division of Child Support to identify debt, with privacy protections and 20-day withhold/remit
SB 5842 (Washington) – Summary
Overview
- Purpose: Restrict the use of social security numbers (SSNs) by insurance companies when determining a claimant’s past-due child support debt, by minimizing SSN reporting and prioritizing privacy in the information-sharing process.
- Status: Signed into law and effective June 6, 2024 (Chapter 126, 2024 Laws). Governor signed on March 15, 2024.
What the bill does
- Core requirement: When insurers report information to determine whether a claimant owes child support debt, they must minimize the use of directly reported SSNs. The Department of Social and Health Services (DSHS) Division of Child Support (DCS) can identify claimants using the claimant’s full name, current address, and date of birth, with SSNs used only if necessary to identify the claimant.
- Direct reporting to DCS: An insurer must provide minimum identifying information about the claimant directly to the DCS (rather than exclusively through third-party data collection organizations or other entities).
- Privacy protections: All information exchanges must comply with applicable state and federal privacy laws, including HIPAA where applicable. Insurers are protected from civil/criminal liability for good-faith disclosures to DCS/DSHS.
- Withholding process (where debt is identified): If DCS notifies the insurer of owed debt, the insurer must withhold the specified amount from the claim payout and remit it to the department within 20 days. Certain claim-priorities apply (e.g., liens for attorneys’ fees, etc.).
- Timing and safeguards: Insurers may not delay the disbursement of a claim to comply with reporting requirements, and periodic payment rules specify when withholdings apply relative to payment schedules.
Key provisions and definitions
- “Claimant” includes individuals with tort liability claims for bodily injury or wrongful death, workers’ compensation beneficiaries, or life-insurance beneficiaries (with some exclusions).
- “Qualifying payment” refers to a lump-sum or installment payment over $500 to the claimant directly (not to a third party).
- “Insurance claim data collection organization” and “Insurer” definitions establish the reporting framework and coordination with federal/state child support entities.
- The bill continues to permit reporting to data collection organizations or federal offices if reporting directly to DCS is not feasible, but emphasizes direct reporting to DCS as the preferred path.
Who is affected
- Insurance carriers issuing qualifying payments in Washington (bodily injury, wrongful death, workers’ compensation, or life insurance claims >$500).
- The DCS and DSHS, as the entities responsible for administering and enforcing child support debt collection.
- Claimants receiving insurance payments who may have past-due child support obligations.
Implementation timeline
- Effective 90 days after adjournment of the 2024 session (June 6, 2024).
- No new appropriations; fiscal note acknowledged as available.
Legislative history (highlights)
- Prefiled December 13, 2023; introduced in Senate.
- Passed Senate: January 31, 2024; passed House: February 29, 2024.
- Governor signed: March 15, 2024.
- Public hearings and committee actions occurred in February 2024; formal enrollment and enactment completed in early 2024.
Compiled from official sources — confirm details with the bill’s official record.
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