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.

Summary: Michelle's Law - Amends the Employee Retirement Income Security Act of 1974 (ERISA), the Public Health Service Act, and the Internal Revenue Code to prohibit a group health plan from terminating coverage of a dependent child due to a medically necessary leave of absence from, or any other change in enrollment at, a postsecondary education institution that commences while such child is suffering from a serious illness or injury and that causes such child to lose student status for purposes of coverage under the plan, before the earlier of: (1) one year after the first day of the medically necessary leave of absence; or (2) the date on which such coverage would otherwise terminate under the terms of the plan. Requires written certification by the child's treating physician. Directs group health plans to include notice of the terms of this Act with any notice regarding a requirement for certification of student status for coverage under the plan.

Provides that coverage under this Act continues in the manner in which the participant or beneficiary is covered under the plan changes so long as the change of coverage continues to provide coverage of beneficiaries as dependent children.

Applies such requirement to coverage offered in the individual market.

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.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.