New Health Insurance Protection for College Students--"Michelle's Law"

A new federal law effective this fall will provide needed protection to the health insurance benefits of college students who are compelled to take a medical leave of absence from school because of illnesss or injury.  The law will be particularly helpful for students who have sustained traumatic brain injuries and are undergoing prolonged brain injury rehabilitation.

Under usual circumstances, although health insurance policies typically provide coverage for dependent children attending college, if that attendance ends, the child would become ineligible for further medical coverage under their parents policy.

Under this new federal legislation termed "Michelle's Law", insurance policies effective on or after October 9, 2009 that provide medical coverage for dependent children must provide this continued coverage for dependent children who because of medical necessity must leave school. For policies on a calendar year basis, the law applies to policy renewing effective January 1, 2010.

The health insurance coverage must be extended for a period of one year after the first day of the medically necessary leave of absence begins.

In order for the dependent to be eligible for this continued coverage the group plan or policy issuer must receive written certification from the treating physician stating that the dependent is suffering from a serious illness or injury and that a leave of absence is medically necessary.

The new law is known as Michelle's Law and is public law no. 110--381 and will become part of th ERISA as section 714.