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Michelle's Law

COBRA Update

Quick Poll – Review

May Quick Poll – Vote

Further Reading

Contact Information

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Michelle's Law

The passage last year of "Michelle’s Law" means that families with college-age children covered by health insurance won’t have to choose between continued coverage and their child’s health.

Named for Michelle Morse, a Plymouth State University student who died in 2005 from colon cancer, the law allows students to take up to a year of medical leave and remain covered by their parents’ (or the college’s) health insurance.

According to the Congressional Budget Office, fewer than 1 percent of students go on medical leaves of absence each year. The costs for those who do need a medical leave, however, can be significant. The most common causes for medical leaves of absence from college include mental disorders, drug and alcohol related problems, major illnesses and serious trauma.

The law applies to plans that cover dependent children based on student status at a post-secondary institution, and requires group health plans and insurers to provide up to one year of extended coverage to college students who would otherwise lose healthcare coverage. The law is effective for plan years that begin on or after October 9, 2009.

Some of the stipulations of the law include:

• The student must have been enrolled in the group health plan before the first day of the leave.
• The student’s healthcare provider must provide a written certification indicating that the student is suffering from a serious illness or injury that requires the leave or change in enrollment status.
• The student is eligible for COBRA status after the appropriate leave period.

As businesses prepare for upcoming open enrollment periods, it’s important to review the terms of eligibility in plan documents and prepare to communicate these changes with employees.

If you have questions about how Michelle’s Law will affect you or your employees, please call NIHP toll-free at 800-723-0202.

COBRA Update

The economic stimulus plan signed into law earlier this year had good news for those who have been laid off: help with COBRA payments.

With COBRA, laid-off workers could continue their health coverage under their former employer for up to 18 months, but they had to pay the entire premium plus a 2 percent administrative fee. Those payments averaged about $400 a month for individuals and more than $1,000 for family coverage.

The stimulus package will cover 65 percent of COBRA premiums for employees laid off between Sept. 1, 2008 and December 31, 2009. If you’d like help communicating this to former employees or as part of upcoming severance packages, contact NIHP toll-free at 800-723-0202.

A Quick Review of Last Issue's "Quick Poll"

May Quick Poll – Vote

Further Reading

Michelle's Law creates health plan costs
HR Magazine, February 2009

A new federal law protects the health benefits of seriously ill or injured college students, and provides up to one year of extended coverage to college students who would otherwise lose health coverage when they take medically necessary leaves of absence.

Michelle's Law guarantees continued coverage for dependent college students
Employee Benefit News, January 1, 2009

Whether students remain on their parents' plans, which are typically employer-subsidized, or transfer to the institutional plan, Michelle's Law permits students to retain coverage if they take a reduced schedule or leave from school due to a serious illness.

A maze of options on health insurance for college students
Ocala Star-Banner, May 2, 2009

The main goal for insurance coverage of college students is to make sure that a student has enough coverage to pay for a serious injury or sudden illness. When the federal Michelle’s Law goes into effect this fall, group insurance plans must cover students on medical leave for up to one year.

Stimulus will help laid-off workers with COBRA costs
USA Today, March 2, 2009

The economic stimulus package included a section to subsidize COBRA premiums for unemployed workers at 65% for employees who were laid off between September 1, 2008 and the end of this year. This article covers the basic points of the COBRA subsidy.