| On Thursday, October 9, the President signed into law, H.R. 2851, referred to as Michelle’s Law. This law amends ERISA, the Public Health Service Act and the Internal Revenue Code. The new rule is effective for plan years beginning on or after October 9, 2009 and will apply to medically necessary leaves of absence beginning during such plan years. For a calendar year plan, the effective date is January 1, 2010.
Michelle’s Law requires extended health coverage for a college student who is covered as a dependent if the student would have otherwise lost coverage because of a medically necessary leave of absence. The student must be enrolled as an eligible dependent under a fully insured or self-funded health plan and must be a student attending a post-secondary educational institution. The student must be suffering from a serious injury or illness immediately before the first day of the medical leave. Written certification from the student’s treating physician indicating the leave of absence is medically necessary is required. If all requirements are met, the extended coverage period is the lesser of one year beginning on the first day of the medical leave of absence or until the date coverage would otherwise terminate.
The plan must continue coverage for a dependent child on a medically necessary leave of absence at the same level of benefits as the student had before taking the leave. If there are any modifications to the plan, continued coverage must apply as long the plan offers coverage to dependent children.
The law also requires health plans to provide notice of the requirements along with any notice regarding a requirement for certifying student status for plan coverage.
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