On October 9,2009, Michelle’s Law, a new federal law pursuant to P.L. 110-381, will prohibit an individual or group health plan from terminating the health coverage of a dependent college student who has taken a leave of absence or has changed his or her status to part-time due to serious illness or injury. This law will amend the Employee Retirement Security Act of 1974, Public Health Service Act and the Internal Revenue Code of 1986.

WHAT DOES THIS MEAN TO YOU AS AN EMPLOYER?

The following documentation outlines the key elements of this law:

Qualifying Factors for Students:

• Prior to the first day of medical leave or status change, the student’s enrollment at a higher education institution must have been the authorizing agent for coverage.
• A leave of absence or status change must be medically necessary and begin at the time of the student’s medical problems.
• A written certification from the student’s treating physician that proves the student is suffering from medical problems and that the leave or status change is medically necessary must be given to the individual or group health plan. Also, any notice describing the student’s enrollment at a higher education institution as a requirement for coverage must include the terms for extended coverage under Michelle’s Law.

Details of Extended Coverage:

• The health coverage must extend for one year after the first day of the medical leave or status change or until the plan’s termination date, if earlier.
• The student on medical leave or under status change will continue to receive the same benefits that he or she would have otherwise.
• Despite any coverage changes that may occur during the time of the student’s medical leave or status change, if the student is still permitted to receive the changed coverage, it must be continued until the plan’s termination.
  

WHAT SHOULD I DO NEXT?
Corporate Synergies will continue to release information and guidance as to how the carriers will be administering this new legislation as it is released. To review the recent legislation, please CLICK HERE.

If you have any additional questions regarding the information within this eCommunication, please call Corporate Synergies at 1.866.CSG.1719 or click here to contact us today.

This alert is a legislative update designed to help you administer your employee benefits program and is not legal counsel. Please consult with an attorney for legal advice.