I 
110TH CONGRESS 
1ST SESSION H. R. 2851 
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. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 25, 2007 
Mr. HODES (for himself, Mr. CASTLE, Ms. SHEA-PORTER, Mr. NADLER, Mrs. 
MCCARTHY of New York, Mr. DAVIS of Illinois, Ms. SUTTON, Mrs. 
BOYDA of Kansas, Mr. MCGOVERN, Mr. STARK, Ms. CASTOR, Ms. 
CLARKE, Mr. COHEN, Mr. JOHNSON of Georgia, Mrs. LOWEY, Mr. ED-
WARDS, Mr. EMANUEL, Ms. SOLIS, Ms. ZOE LOFGREN of California, Mr. 
LANTOS, Mr. SHERMAN, Mr. WU, Mr. LINCOLN DAVIS of Tennessee, Mr. 
KAGEN, Mr. LARSON of Connecticut, Mr. BERRY, Mr. MCDERMOTT, Mrs. 
TAUSCHER, Ms. HARMAN, Mr. GUTIERREZ, Mr. SCOTT of Virginia, Ms. 
SCHAKOWSKY, Mr. MITCHELL, Mr. SARBANES, Ms. KAPTUR, Mr. 
GILCHREST, Mr. BARROW, Mr. MCNULTY, Mr. WELCH of Vermont, Ms. 
SCHWARTZ, Mr. BRALEY of Iowa, Mr. ELLISON, Mr. REGULA, and Mr. 
BISHOP of New York) introduced the following bill; which was referred 
to the Committee on Energy and Commerce, and in addition to the Com-
mittees on Education and Labor and Ways and Means, for a period to 
be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
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. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Michelle’s Law’’. 
SEC. 2. COVERAGE OF DEPENDENT STUDENTS ON MEDI-
CALLY 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 MEDI-
CALLY NECESSARY LEAVE OF ABSENCE. 
‘‘(a) MEDICALLY NECESSARY LEAVE OF ABSENCE.— 
In this section, the term ‘medically necessary leave of ab-
sence’ means, with respect to a dependent child described 
in subsection (b)(2), a leave of absence of such child from 
a postsecondary educational institution (including an in-
stitution 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 severe illness or injury; 
‘‘(2) is medically necessary; and 
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‘‘(3) causes such child to lose full-time student 
status under the terms of the plan. 
‘‘(b) REQUIREMENT TO CONTINUE COVERAGE.— 
‘‘(1) IN GENERAL.—In the case of a dependent 
child described in paragraph (2), a group health 
plan (or health insurance coverage offered in connec-
tion with such a plan) shall not terminate coverage 
of such child 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 de-
pendent child described in this paragraph is a bene-
ficiary under the plan who— 
‘‘(A) is a dependent child, under the terms 
of the plan, of a participant or beneficiary of 
the plan; 
‘‘(B) was enrolled in the plan or coverage 
as of the first day of the medically necessary 
leave of absence involved; and 
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‘‘(C) was enrolled as a full-time student at 
a postsecondary educational institution (as de-
scribed in subsection (a)) until the first day of 
the medically necessary leave of absence in-
volved. 
‘‘(3) CERTIFICATION
BY
PHYSICIAN.—Para-
graph (1) shall not apply to a group health plan (or 
health insurance coverage offered in connection with 
such a plan) unless certification by the child’s at-
tending physician is submitted to the plan or issuer 
stating that the dependent child is suffering from a 
severe illness or injury and that the leave of absence 
is medically necessary. 
‘‘(c) NO LOSS
OF FULL-TIME STATUS DUE
TO 
BREAK IN SEMESTER.—Any breaks in the school semester 
shall not disqualify a dependent child described under sub-
section (b) from coverage under this section. 
‘‘(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 
full-time student at the institution of higher education and 
was not on a medically necessary leave of absence. 
‘‘(e) COVERAGE UNDER SUCCESSOR PLAN.—If a 
plan sponsor changes group health plans after the first 
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day of a medically necessary leave of absence of dependent 
child described in subsection (b) but before the date de-
scribed under subsection (b)(1), and such new group 
health plan offers coverage of beneficiaries as dependent 
children, such new group health plan shall be subject to 
this section in the same manner as the predecessor group 
health plan. 
‘‘(f) PRESUMPTION.—For purposes of administrative 
or judicial proceedings, upon certification under sub-
section (b)(3), there shall be a rebuttable presumption 
that the requirements of paragraphs (1) and (2) of sub-
section (a) have been met.’’. 
(2) CONFORMING AMENDMENT.—The table of 
contents in section 1 of such Act is amended by in-
serting after the item relating to section 713 the fol-
lowing new item: 
‘‘Sec. 714. Coverage of dependent students on medically necessary leave of ab-
sence.’’. 
(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: 
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‘‘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 ab-
sence’ means, with respect to a dependent child, 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 severe illness or injury; 
‘‘(2) is medically necessary; and 
‘‘(3) causes such child to lose full-time student 
status under the terms of the plan. 
‘‘(b) REQUIREMENT TO CONTINUE COVERAGE.— 
‘‘(1) IN GENERAL.—In the case of a dependent 
child described in paragraph (2), a group health 
plan (or health insurance coverage offered in connec-
tion with such a plan) shall not terminate coverage 
of such child 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 
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‘‘(B) the date on which such coverage 
would otherwise terminate under the terms of 
the plan. 
‘‘(2) CHILD
DESCRIBED.—A dependent child 
described in this paragraph is a beneficiary under 
the plan who— 
‘‘(A) is a dependent child, under the terms 
of the plan, of a participant or beneficiary of 
the plan; 
‘‘(B) was enrolled in the plan or coverage 
as of the first day of the medically necessary 
leave of absence involved; and 
‘‘(C) was enrolled as a full-time student at 
a postsecondary educational institution (as de-
scribed in subsection (a)) until the first day of 
the medically necessary leave of absence in-
volved. 
‘‘(3) CERTIFICATION
BY
PHYSICIAN.—Para-
graph (1) shall not apply to a group health plan (or 
health insurance coverage offered in connection with 
such a plan) unless certification by the child’s at-
tending physician is submitted to the plan or issuer 
stating that the dependent child is suffering from a 
severe illness or injury and that the leave of absence 
is medically necessary. 
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‘‘(c) NO LOSS
OF FULL-TIME STATUS DUE
TO 
BREAK IN SEMESTER.—Any breaks in the school semester 
shall not disqualify a dependent child described under sub-
section (b) from coverage under this section. 
‘‘(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 
full-time student at the institution of higher education and 
was not on a medically necessary leave of absence. 
‘‘(e) COVERAGE UNDER SUCCESSOR PLAN.—If a 
plan sponsor changes group health plans after the first 
day of a medically necessary leave of absence of dependent 
child described in subsection (b) but before the date de-
scribed under subsection (b)(1), and such new group 
health plan offers coverage of beneficiaries as dependent 
children, such new group health plan shall be subject to 
this section in the same manner as the predecessor group 
health plan. 
‘‘(f) PRESUMPTION.—For purposes of administrative 
or judicial proceedings, upon certification under sub-
section (b)(3), there shall be a rebuttable presumption 
that the requirements of paragraphs (1) and (2) of sub-
section (a) have been met.’’. 
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(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 ab-
sence’ means, with respect to a dependent child, a leave 
of absence of such child from a postsecondary educational 
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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 severe illness or injury; 
‘‘(2) is medically necessary; and 
‘‘(3) causes such child to lose full-time student 
status under the terms of the plan. 
‘‘(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 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) CHILD
DESCRIBED.—A dependent child 
described in this paragraph is a beneficiary under 
the plan who— 
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‘‘(A) is a dependent child, under the terms 
of the plan, of a participant or beneficiary of 
the plan; 
‘‘(B) was enrolled in the plan or coverage 
as of the first day of the medically necessary 
leave of absence involved; and 
‘‘(C) was enrolled as a full-time student at 
a postsecondary educational institution (as de-
scribed in subsection (a)) until the first day of 
the medically necessary leave of absence in-
volved. 
‘‘(3) CERTIFICATION
BY
PHYSICIAN.—Para-
graph (1) shall not apply to a group health plan (or 
health insurance coverage offered in connection with 
such a plan) unless certification by the child’s at-
tending physician is submitted to the plan (or the 
issuer health insurance coverage in connection with 
the plan) stating that the dependent child is suf-
fering from a severe illness or injury and that the 
leave of absence is medically necessary. 
‘‘(c) NO LOSS
OF FULL-TIME STATUS DUE
TO 
BREAK IN SEMESTER.—Any breaks in the school semester 
shall not disqualify a dependent child described under sub-
section (b) from coverage under this section. 
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‘‘(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 
full-time student at the institution of higher education and 
was not on a medically necessary leave of absence. 
‘‘(e) COVERAGE UNDER SUCCESSOR PLAN.—If a 
plan sponsor changes group health plans after the first 
day of a medically necessary leave of absence of a depend-
ent child described in subsection (b) but before the date 
described under subsection (b)(1), and such new group 
health plan offers coverage of beneficiaries as dependent 
children, such new group health plan shall be subject to 
this section in the same manner as the predecessor group 
health plan. 
‘‘(f) PRESUMPTION.—For purposes of administrative 
or judicial proceedings, upon certification under sub-
section (b)(3), there shall be a rebuttable presumption 
that the requirements of paragraphs (1) and (2) of sub-
section (a) have been met.’’. 
(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 ab-
sence.’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
this Act shall apply with respect to plan years beginning 
on or after the date of the enactment of this Act and to 
medically necessary leaves of absence beginning during 
such plan years. 
Æ 
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