Started in 1998, the Payment Intercept Program (PIP) was created by the Child Support Enforcement Division (DOR) to mandate that insurance companies work with DOR in identifying pending insurance claim payments owed to parents who had child support debts and ensuring that the money went to support owed to their children. The program was so successful that it was selected by the Federal Office of Child Support Enforcement as one of the nation's Best Practices and Good Ideas in Child Support Enforcement. DOR then expanded PIP so that public retirement boards could access the program to determine whether individuals receiving public retirement payments owed past-due child support.

Based on the success of PIP, new legislation was enacted in July 2003 to allow for the intercept of insurance claim payments to satisfy debts in addition to past-due child support. G.L. c. 175, § 24E authorized MassHealth and the Department of Transitional Assistance (DTA) to intercept insurance payments for the purpose of recovering public assistance benefits. In December 2004, G.L. c. 175, § 24F was enacted authorizing DOR's Taxpayer Services Division to intercept insurance claim payments for the purpose of paying delinquent taxes owed to the Commonwealth.

PIP helps families provide for their children and also relieves the burden borne by the citizens of the Commonwealth when individuals fail to pay their taxes. PIP furthers the goal of the Medicaid program, which provides both medical and financial public assistance benefits to low-income families.