A new federal law, known as Michelle's Law, recently went into effect. This law prohibits a group health plan from terminating a college student's health coverage on the basis of the child taking a medically necessary leave of absence from school or changing to a part-time status.
The leave of absence or reduction in hours must be medically necessary and must beginwhile the student is sufering from a serious illness or injury and would otherwise lose coverage under the plan.
Other requirements exist in order for this provision to apply. The student must have been enrolled in the group plan before the first day of the leave. There must also be a written certification by the student's doctor indicating that the student is suffering from a serious illness or injury that requires the leave or change in enrollment status. The coverage under Michelle's Law must be extended for at least one year; however, coverage may end earlier for certain reasons, such as the student aging out of the plan.
Several states have also passed similar laws. Wisconsin has had its own version of Michelle's Law since Wisconsin Act 36 was signed by Governor Jim Doyle in November of 2007. While both laws offered similar language, Wisconsin Act 36 did not cover self-funded employer health plans, also known as ERISA plans, because of preemption by federal law. Enactment of Michelle's Law at the federal level extends this coverage to those ERISA plans.
The new federal law will take effect at renewal time for groups renewing January 1 and later.
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