S. 400 (Sununu), H.R. 2851 (Hodes) - P.L. 110-381

Michelle’s Law
Status

S. 400 introduced January 25, 2007, referred to Senate Committee on Health, Education, Labor and Pensions (HELP). H.R. 2851 introduced June 25, 2007; referred to House Committees on Energy and Commerce, Education and Labor and Ways and Means. On July 16, 2008, the Energy and Commerce Committee approved an amended version of H.R. 2851 by a vote of 40 to 0. On July 30, the bill was reported (H. Rept. 110-806, Part I) and, after being discharged from the other committees, passed by the full House by voice vote. On September 25, the full Senate considered the House-passed bill and approved it by voice vote. H.R. 2581 was signed into law (P.L. 110-381) on October 9, 2008.
General Overview

P.L. 110-381 amends the Employee Retirement Income Security Act (ERISA) of 1974, the Public Health Service Act, and the Internal Revenue Code of 1986 to ensure that dependent students who take a medically necessary leave of absence do not, as a result, lose health insurance coverage under their parents’ plans. The provision applies to insurance under group health plans (including self-insured plans) and to coverage sold in the individual (non-group) insurance market.

FEHBP Expansions

Target population(s)
No provision.

Eligibility
No provision.

Choice of health insurance plans
No provision.

Premiums
No provision.

Enrollment process
No provision.

Effective Date
No provision.

COBRA Continuation Coverage

Duration of Coverage
P.L. 110-381 will provide for continuation of coverage in the case of a dependent student who, because of a serious illness or injury, must take a leave of absence from their college or other post secondary educational institution (or drop from full-time to part-time status) and would, as a result, otherwise lose their health insurance under their parent’s plan. To the extent that it mandates insuring entities to provide continued coverage in the case of certain events, the Act is similar to COBRA continuation laws. However, it does not address how it interacts with COBRA requirements. Under the new Act, insurance coverage will continue for the earlier of one year after the first day of the medically necessary drop from full-time status or the date on which the coverage would otherwise terminate. The Act applies both to group health insurance and insurance sold directly to individuals (i.e., individual (non-group) insurance) (S. 400 only applied to group health plans.) Under the Act, the requirement on the insurer or group health plan to continue the coverage depends on receipt of a certification by a treating physician that the dependent is suffering from a serious illness or injury and that the leave of absence (or reduction to part-time status) is medically necessary.

Nature of COBRA Coverage
The same insurance benefits under the health plan will be available as would have been in effect if the dependent had not taken a leave of absence or reduced his or her hours from full-time to part-time student status.

Other
 No provision.

Pooling Mechanisms (Purchasing Groups, Association Plans, High Risk Pools for Medically Uninsurable)

Pooling mechanism
No provision.

Pooling mechanism target population
No provision.

Pooling mechanism eligibility requirements
No provision.

Requirements on pooling mechanism
No provision.

Role of pool in providing health insurance
No provision.

Types of coverage that pooling mechanism must offer
No provision.

Requirements on health insurance issuers selling to the pooling mechanism
No provision.

Federal preemption (override) of state laws
No provision.

Federal financial incentives to encourage establishment of pooling mechanisms
No provision.

Administration and required studies
No provision.

Effective Date
The Act applies to plan years beginning on or after October 9, 2009 (one year after enactment) and to medically necessary leaves of absence beginning during such plan years.

Other Provisions

Other
None