Intercepting insurance claims for unpaid child support effective, performance audit finds

Since the Legislature acted on the recommendations of a previous audit, Washington has more than doubled the amount of unpaid child support it collects from insurance claims, a follow-up performance audit has found. 

In 2020, a performance audit by the Office of the Washington State Auditor recommended requiring insurance companies to report payouts for certain types of claims, so they could be matched against records of unpaid child support. A follow-up performance audit released today found that the resulting change in the law was successful – and more can be done to increase collections.  

At the time of the first audit, submitting claims data to match against child support debt was voluntary for insurance companies in the state. After new legislation required those companies to participate in the intercept match program, collections more than doubled, from nearly $1.7 million in 2021 to just over $3.5 million in 2022. 

The Division of Child Support within the Department of Social and Health Services oversees the child support program. However, the Office of the Insurance Commissioner oversees insurance companies doing business in Washington.  

Auditors found that, while not required to do so, the Office of the Insurance Commissioner can help educate insurers about child support insurance intercepts. Not all eligible insurance claims have been reported as required for the Division of Child Support to act upon. In addition, neither agency monitors compliance with the child support intercept law, and there is no enforcement mechanism in the law.   

The audit recommends, in part, that one or both agencies be given enforcement authority to ensure compliance with the program. The full report, including recommendations, can be found online here: Enhancing WA Child Support Insurance Intercept Law. 

“Overall, this report demonstrates the positive results that can be achieved through independent analyses like our audits, the policy making efforts of the Legislature, and the diligent administration of the law by state agencies,” said State Auditor Pat McCarthy. “Working in collaboration, we can continuously improve public services.”

Media questions: Assistant Director of Communications Adam Wilson, Adam.Wilson@sao.wa.gov, 564-999-0799