(A) To the extent necessary to reimburse the state agency administering the Medicaid program for expenditures on behalf of a child, the agency may petition the court seeking withholding of employment income or state tax refunds from a person who:

(1) is required by a court order to provide and maintain health coverage for a child who is eligible for medical assistance under a State Plan for Medical Assistance pursuant to Title XIX of the Social Security Act;

(2) has received payment from a third party for the costs of health care items or services; and

(3) has not used the payment to reimburse, as appropriate, either the other parent or guardian of the child or the provider of the items or services.

(B) Claims for current or past due child support take priority over claims filed pursuant to this section.