News from New York State Office of Temporary & Disability Assistance

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State Officials Laud Court Ruling in Wal-Mart Case

Stepchildren Deemed Eligible for Health Coverage

ALBANY, NY (09/17/2007; 1038)(readMedia)-- State officials today hailed a federal court ruling that ensures children will get needed health care coverage from a stepparent’s employer regardless of which parent the child lives with.

“This decision is a victory for children who have been denied health insurance through a parent’s employer,” said David A. Hansell, Commissioner of the State Office of Temporary and Disability Assistance (OTDA). “I commend Essex County Social Services Commissioner John P. O’Neill and Assistant Essex County Attorney David D. Scaglione for successfully pursuing this case and guaranteeing stepchildren qualify for private health insurance, regardless of which parent has custody.”

In an Aug. 22 decision, the U.S. District Court for the Northern District of New York ruled that Wal-Mart Stores Inc. must extend health insurance benefits to the stepson of a Wal-Mart employee living in Essex County. The Essex County Department of Social Services sought to obtain medical support from a Wal-Mart employee on behalf of her stepson.

Health Commissioner Richard F. Daines, M.D., said, "Health insurance coverage is important for children. They need vaccinations against infectious diseases, screenings for lead poisoning and other dangers, and primary and preventive care to give them a healthy start in life."

Essex County had obtained a Family Court order establishing the employee’s obligation to provide available health insurance for her non-custodial stepson, who had been receiving coverage through Medicaid. The Essex Department of Social Services’ Child Support Collection Unit issued a notice to Wal-Mart, the stepmother’s employer, but the company refused to enroll the boy in its health plan.

The case was moved to federal court, which ordered Wal-Mart to comply with the Family Court order and provide coverage for the stepchild, even though such coverage was beyond the coverage ordinarily provided by the company’s plan.

OTDA, which oversees child support enforcement in New York State, provided legal assistance to Essex County in bringing the suit.

Hansell said the decision is in keeping with Governor Spitzer’s commitment to see to it that all residents are insured. “The state remains committed to making sure there is universal health care coverage for all of New York’s children,” Hansell said. “At the same time, we will continue to ensure private employers are providing health care coverage for their workers’ children in accordance with the law which is what this decision does.”

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