Michelle's Law Provides Continued Medical Coverage For Students
"Michelle's Law" was enacted on October 9, 2008, and provides for continuity of medical coverage for college students under their parent's coverage when they take a medically necessary leave of absence from college. It is named after a student who would have lost coverage under her parent's plan if she reduced her course-load to treat cancer and ceased being a "full-time" student. It now prohibits a group health plan from terminating coverage of a dependent child due to a medically necessary leave of absence, if that dependent is enrolled in post-secondary education.
Generally, the law provides that the plan cannot terminate coverage prior to the earlier of the date that is one year after the first day of the medically necessary leave of absences or the date on which such coverage would otherwise terminate under the terms of the plan. A medically necessary leave of absence must commence while the child is suffering from a serious illness or injury, be medically necessary and cause the child to lose student status as defined by the plan. A plan can require certification of the condition from a treating physician.
I make note of it here because it is effective for plan years beginning after October 9, 2009, and, more importantly, the plan must include a description of the requirements as part of any notice or provision regarding a requirement for certification of student status for coverage under the plan. For those sponsors preparing for 2009 plan notices, Michelle's Law is something that should be included in plan documentation.
We are expecting guidance on things like interaction with COBRA which should come out before the effective date.
