[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2851 Engrossed in House (EH)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
110th CONGRESS
  2d Session
                                H. R. 2851

_______________________________________________________________________

                                 AN ACT


 
   To amend the Employee Retirement Income Security Act 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 lose health insurance coverage, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as ``Michelle's Law''.

SEC. 2. COVERAGE OF DEPENDENT STUDENTS ON MEDICALLY NECESSARY LEAVE OF 
              ABSENCE.

    (a) Amendments of ERISA.--
            (1) In general.--Subpart B of part 7 of title I of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 1185 
        et seq.) is amended by adding at the end the following:

``SEC. 714. COVERAGE OF DEPENDENT STUDENTS ON MEDICALLY NECESSARY LEAVE 
              OF ABSENCE.

    ``(a) Medically Necessary Leave of Absence.--In this section, the 
term `medically necessary leave of absence' means, with respect to a 
dependent child described in subsection (b)(2) in connection with a 
group health plan or health insurance coverage offered in connection 
with such plan, a leave of absence of such child from a postsecondary 
educational institution (including an institution of higher education 
as defined in section 102 of the Higher Education Act of 1965), or any 
other change in enrollment of such child at such an institution, that--
            ``(1) commences while such child is suffering from a 
        serious illness or injury;
            ``(2) is medically necessary; and
            ``(3) causes such child to lose student status for purposes 
        of coverage under the terms of the plan or coverage.
    ``(b) Requirement To Continue Coverage.--
            ``(1) In general.--In the case of a dependent child 
        described in paragraph (2), a group health plan, or a health 
        insurance issuer that provides health insurance coverage in 
        connection with a group health plan, shall not terminate 
        coverage of such child under such plan or health insurance 
        coverage due to a medically necessary leave of absence before 
        the date that is the earlier of--
                    ``(A) the date that is 1 year after the first day 
                of the medically necessary leave of absence; or
                    ``(B) the date on which such coverage would 
                otherwise terminate under the terms of the plan or 
                health insurance coverage.
            ``(2) Dependent child described.--A dependent child 
        described in this paragraph is, with respect to a group health 
        plan or health insurance coverage offered in connection with 
        the plan, a beneficiary under the plan who--
                    ``(A) is a dependent child, under the terms of the 
                plan or coverage, of a participant or beneficiary under 
                the plan or coverage; and
                    ``(B) was enrolled in the plan or coverage, on the 
                basis of being a student at a postsecondary educational 
                institution (as described in subsection (a)), 
                immediately before the first day of the medically 
                necessary leave of absence involved.
            ``(3) Certification by physician.--Paragraph (1) shall 
        apply to a group health plan or health insurance coverage 
        offered by an issuer in connection with such plan only if the 
        plan or issuer of the coverage has received written 
        certification by a treating physician of the dependent child 
        which states that the child is suffering from a serious illness 
        or injury and that the leave of absence (or other change of 
        enrollment) described in subsection (a) is medically necessary.
    ``(c) Notice.--A group health plan, and a health insurance issuer 
providing health insurance coverage in connection with a group health 
plan, shall include, with any notice regarding a requirement for 
certification of student status for coverage under the plan or 
coverage, a description of the terms of this section for continued 
coverage during medically necessary leaves of absence. Such description 
shall be in language which is understandable to the typical plan 
participant.
    ``(d) No Change in Benefits.--A dependent child whose benefits are 
continued under this section shall be entitled to the same benefits as 
if (during the medically necessary leave of absence) the child 
continued to be a covered student at the institution of higher 
education and was not on a medically necessary leave of absence.
    ``(e) Continued Application in Case of Changed Coverage.--If--
            ``(1) a dependent child of a participant or beneficiary is 
        in a period of coverage under a group health plan or health 
        insurance coverage offered in connection with such a plan, 
        pursuant to a medically necessary leave of absence of the child 
        described in subsection (b);
            ``(2) the manner in which the participant or beneficiary is 
        covered under the plan changes, whether through a change in 
        health insurance coverage or health insurance issuer, a change 
        between health insurance coverage and self-insured coverage, or 
        otherwise; and
            ``(3) the coverage as so changed continues to provide 
        coverage of beneficiaries as dependent children,
this section shall apply to coverage of the child under the changed 
coverage for the remainder of the period of the medically necessary 
leave of absence of the dependent child under the plan in the same 
manner as it would have applied if the changed coverage had been the 
previous coverage.''.
            (2) Conforming amendment.--The table of contents in section 
        1 of such Act is amended by inserting after the item relating 
        to section 713 the following new item:

``Sec. 714. Coverage of dependent students on medically necessary leave 
                            of absence.''.
    (b) Amendments to the Public Health Service Act.--
            (1) Group markets.--Subpart 2 of part A of title XXVII of 
        the Public Health Service Act (42 U.S.C. 300gg-4 et seq.) is 
        amended by adding at the end the following new section:

``SEC. 2707. COVERAGE OF DEPENDENT STUDENTS ON MEDICALLY NECESSARY 
              LEAVE OF ABSENCE.

    ``(a) Medically Necessary Leave of Absence.--In this section, the 
term `medically necessary leave of absence' means, with respect to a 
dependent child described in subsection (b)(2) in connection with a 
group health plan or health insurance coverage offered in connection 
with such plan, a leave of absence of such child from a postsecondary 
educational institution (including an institution of higher education 
as defined in section 102 of the Higher Education Act of 1965), or any 
other change in enrollment of such child at such an institution, that--
            ``(1) commences while such child is suffering from a 
        serious illness or injury;
            ``(2) is medically necessary; and
            ``(3) causes such child to lose student status for purposes 
        of coverage under the terms of the plan or coverage.
    ``(b) Requirement To Continue Coverage.--
            ``(1) In general.--In the case of a dependent child 
        described in paragraph (2), a group health plan, or a health 
        insurance issuer that provides health insurance coverage in 
        connection with a group health plan, shall not terminate 
        coverage of such child under such plan or health insurance 
        coverage due to a medically necessary leave of absence before 
        the date that is the earlier of--
                    ``(A) the date that is 1 year after the first day 
                of the medically necessary leave of absence; or
                    ``(B) the date on which such coverage would 
                otherwise terminate under the terms of the plan or 
                health insurance coverage.
            ``(2) Dependent child described.--A dependent child 
        described in this paragraph is, with respect to a group health 
        plan or health insurance coverage offered in connection with 
        the plan, a beneficiary under the plan who--
                    ``(A) is a dependent child, under the terms of the 
                plan or coverage, of a participant or beneficiary under 
                the plan or coverage; and
                    ``(B) was enrolled in the plan or coverage, on the 
                basis of being a student at a postsecondary educational 
                institution (as described in subsection (a)), 
                immediately before the first day of the medically 
                necessary leave of absence involved.
            ``(3) Certification by physician.--Paragraph (1) shall 
        apply to a group health plan or health insurance coverage 
        offered by an issuer in connection with such plan only if the 
        plan or issuer of the coverage has received written 
        certification by a treating physician of the dependent child 
        which states that the child is suffering from a serious illness 
        or injury and that the leave of absence (or other change of 
        enrollment) described in subsection (a) is medically necessary.
    ``(c) Notice.--A group health plan, and a health insurance issuer 
providing health insurance coverage in connection with a group health 
plan, shall include, with any notice regarding a requirement for 
certification of student status for coverage under the plan or 
coverage, a description of the terms of this section for continued 
coverage during medically necessary leaves of absence. Such description 
shall be in language which is understandable to the typical plan 
participant.
    ``(d) No Change in Benefits.--A dependent child whose benefits are 
continued under this section shall be entitled to the same benefits as 
if (during the medically necessary leave of absence) the child 
continued to be a covered student at the institution of higher 
education and was not on a medically necessary leave of absence.
    ``(e) Continued Application in Case of Changed Coverage.--If--
            ``(1) a dependent child of a participant or beneficiary is 
        in a period of coverage under a group health plan or health 
        insurance coverage offered in connection with such a plan, 
        pursuant to a medically necessary leave of absence of the child 
        described in subsection (b);
            ``(2) the manner in which the participant or beneficiary is 
        covered under the plan changes, whether through a change in 
        health insurance coverage or health insurance issuer, a change 
        between health insurance coverage and self-insured coverage, or 
        otherwise; and
            ``(3) the coverage as so changed continues to provide 
        coverage of beneficiaries as dependent children,
this section shall apply to coverage of the child under the changed 
coverage for the remainder of the period of the medically necessary 
leave of absence of the dependent child under the plan in the same 
manner as it would have applied if the changed coverage had been the 
previous coverage.''.
            (2) Individual market.--Subpart 3 of part B of title XXVII 
        of such Act (42 U.S.C. 300gg-51 et seq.) is amended by adding 
        at the end the following new section:

``SEC. 2753. COVERAGE OF DEPENDENT STUDENTS ON MEDICALLY NECESSARY 
              LEAVE OF ABSENCE.

    ``The provisions of section 2707 shall apply to health insurance 
coverage offered by a health insurance issuer in the individual market 
in the same manner as they apply to health insurance coverage offered 
by a health insurance issuer in connection with a group health plan in 
the small or large group market.''.
    (c) Amendments to the Internal Revenue Code.--
            (1) In general.--Subchapter B of chapter 100 of the 
        Internal Revenue Code of 1986 (relating to other group health 
        plan requirements) is amended by inserting after section 9812 
        the following new section:

``SEC. 9813. COVERAGE OF DEPENDENT STUDENTS ON MEDICALLY NECESSARY 
              LEAVE OF ABSENCE.

    ``(a) Medically Necessary Leave of Absence.--In this section, the 
term `medically necessary leave of absence' means, with respect to a 
dependent child described in subsection (b)(2) in connection with a 
group health plan, a leave of absence of such child from a 
postsecondary educational institution (including an institution of 
higher education as defined in section 102 of the Higher Education Act 
of 1965), or any other change in enrollment of such child at such an 
institution, that--
            ``(1) commences while such child is suffering from a 
        serious illness or injury;
            ``(2) is medically necessary; and
            ``(3) causes such child to lose student status for purposes 
        of coverage under the terms of the plan or coverage.
    ``(b) Requirement to Continue Coverage.--
            ``(1) In general.--In the case of a dependent child 
        described in paragraph (2), a group health plan shall not 
        terminate coverage of such child under such plan due to a 
        medically necessary leave of absence before the date that is 
        the earlier of--
                    ``(A) the date that is 1 year after the first day 
                of the medically necessary leave of absence; or
                    ``(B) the date on which such coverage would 
                otherwise terminate under the terms of the plan.
            ``(2) Dependent child described.--A dependent child 
        described in this paragraph is, with respect to a group health 
        plan, a beneficiary under the plan who--
                    ``(A) is a dependent child, under the terms of the 
                plan, of a participant or beneficiary under the plan; 
                and
                    ``(B) was enrolled in the plan, on the basis of 
                being a student at a postsecondary educational 
                institution (as described in subsection (a)), 
                immediately before the first day of the medically 
                necessary leave of absence involved.
            ``(3) Certification by physician.--Paragraph (1) shall 
        apply to a group health plan only if the plan, or the issuer of 
        health insurance coverage offered in connection with the plan, 
        has received written certification by a treating physician of 
        the dependent child which states that the child is suffering 
        from a serious illness or injury and that the leave of absence 
        (or other change of enrollment) described in subsection (a) is 
        medically necessary.
    ``(c) Notice.--A group health plan shall include, with any notice 
regarding a requirement for certification of student status for 
coverage under the plan, a description of the terms of this section for 
continued coverage during medically necessary leaves of absence. Such 
description shall be in language which is understandable to the typical 
plan participant.
    ``(d) No Change in Benefits.--A dependent child whose benefits are 
continued under this section shall be entitled to the same benefits as 
if (during the medically necessary leave of absence) the child 
continued to be a covered student at the institution of higher 
education and was not on a medically necessary leave of absence.
    ``(e) Continued Application in Case of Changed Coverage.--If--
            ``(1) a dependent child of a participant or beneficiary is 
        in a period of coverage under a group health plan, pursuant to 
        a medically necessary leave of absence of the child described 
        in subsection (b);
            ``(2) the manner in which the participant or beneficiary is 
        covered under the plan changes, whether through a change in 
        health insurance coverage or health insurance issuer, a change 
        between health insurance coverage and self-insured coverage, or 
        otherwise; and
            ``(3) the coverage as so changed continues to provide 
        coverage of beneficiaries as dependent children,
this section shall apply to coverage of the child under the changed 
coverage for the remainder of the period of the medically necessary 
leave of absence of the dependent child under the plan in the same 
manner as it would have applied if the changed coverage had been the 
previous coverage.''.
            (2) Conforming amendment.--The table of sections for 
        subchapter B of chapter 100 of such Code is amended by 
        inserting after the item relating to section 9812 the following 
        new item:

``Sec. 9813. Coverage of dependent students on medically necessary 
                            leave of absence.''.
    (d) Effective Date.--The amendments made by this Act shall apply 
with respect to plan years beginning on or after the date that is one 
year after the date of the enactment of this Act and to medically 
necessary leaves of absence beginning during such plan years.

            Passed the House of Representatives July 30, 2008.

            Attest:

                                                                 Clerk.
110th CONGRESS

  2d Session

                               H. R. 2851

_______________________________________________________________________

                                 AN ACT

   To amend the Employee Retirement Income Security Act 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 lose health insurance coverage, and for other purposes.