A bill to amend the Employee Retirement Income Security Act of 1974 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.

SECTION 1. SHORT TITLE.

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

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

    (a) Amendments of ERISA.--Subpart A of part 7 of title I of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1181 et 
seq.) is amended by adding at the end the following:

``SEC. 704. 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 a leave of absence 
from a postsecondary educational institution (including an institution 
of higher education as defined in section 102 of the Higher Education 
Act of 1965) that--
            ``(1) is due to a severe illness or injury, as certified by 
        the attending physician of the dependent child involved; and
            ``(2) causes the dependent child involved to lose full-time 
        student status.
    ``(b) Requirement To Continue Coverage.--
            ``(1) In general.--In the case of a dependent child 
        described under paragraph (2), a group health plan (or health 
        insurance coverage offered in connection 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) Child described.--A dependent child described in this 
        paragraph is a child who--
                    ``(A) is a dependent of a participant or 
                beneficiary of the plan or coverage;
                    ``(B) is 18 years of age or older;
                    ``(C) was enrolled in the plan or coverage as of 
                the first day of the medically necessary leave of 
                absence involved; and
                    ``(D) was enrolled as a full-time student at a 
                postsecondary educational institution (as described in 
                subsection (a)) until the first day of the medically 
                necessary leave of absence involved.
            ``(3) Certification by physician.--Paragraph (1) shall not 
        apply to a group health plan (or health insurance coverage 
        offered in connection with such a plan) unless the dependent 
        child submits to the plan or issuer and the postsecondary 
        educational institution involved, documentation and 
        certification by the child's attending physician stating that 
        the leave of absence involved is a medically necessary leave of 
        absence.
    ``(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 subsection (b) from coverage under this section.
    ``(d) No Additional Coverage.--A dependent child described under 
subsection (b) shall be entitled to an extension under this section of 
only those benefits to which the child was entitled under the terms of 
the plan or coverage as of the first day of the medically necessary 
leave of absence involved.
    ``(e) Coverage Under Successor Plan.--If an employer or health 
insurance issuer 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 described under subsection (b)(1), 
and such new group health plan offers coverage of dependent children, 
such new group health plan shall be subject to this section in the same 
manner as the group health plan coverage in effect on the first day of 
the medically necessary leave of absence of such dependent child.
    ``(f) Presumption.--For purposes of administrative or judicial 
proceedings, there shall be a rebuttable presumption that the 
documentation and certification under subsection (b)(3) entitles the 
dependent child involved to coverage as described under this 
section.''.
    (b) Amendments to the Internal Revenue Code.--Subchapter B of 
chapter 100 of the Internal Revenue Code of 1986 (26 U.S.C. 9811 et 
seq.) is amended--
            (1) in the table of sections, 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.'';
    and
            (2) by inserting after section 9813 the following:

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

    ``(a) Medically Necessary Leave of Absence.--The term `medically 
necessary leave of absence' means a leave of absence from a 
postsecondary educational institution (including an institution of 
higher education as defined in section 102 of the Higher Education Act 
of 1965) that--
            ``(1) is due to a severe illness or injury, as certified by 
        the attending physician of the dependent child involved; and
            ``(2) causes the dependent child involved to lose full-time 
        student status.
    ``(b) Requirement To Continue Coverage.--
            ``(1) In general.--In the case of a dependent child 
        described under paragraph (2), a group health plan (or health 
        insurance coverage offered in connection 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) Child described.--A dependent child described in this 
        paragraph is a child who--
                    ``(A) is a dependent of a participant or 
                beneficiary of the plan or coverage;
                    ``(B) is 18 years of age or older;
                    ``(C) was enrolled in the plan or coverage as of 
                the first day of the medically necessary leave of 
                absence involved; and
                    ``(D) was enrolled as a full-time student at a 
                postsecondary educational institution (as described in 
                subsection (a)) until the first day of the medically 
                necessary leave of absence involved.
            ``(3) Certification by physician.--Paragraph (1) shall not 
        apply to a group health plan (or health insurance coverage 
        offered in connection with such a plan) unless the dependent 
        child submits to the plan or issuer and the postsecondary 
        educational institution involved, documentation and 
        certification by the child's attending physician stating that 
        the leave of absence involved is a medically necessary leave of 
        absence.
    ``(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 subsection (b) from coverage under this section.
    ``(d) No Additional Coverage.--A dependent child described under 
subsection (b) shall be entitled to an extension under this section of 
only those benefits to which the child was entitled under the terms of 
the plan or coverage as of the first day of the medically necessary 
leave of absence involved.
    ``(e) Coverage Under Successor Plan.--If an employer or health 
insurance issuer 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 described under subsection (b)(1), 
and such new group health plan offers coverage of dependent children, 
such new group health plan shall be subject to this section in the same 
manner as the group health plan coverage in effect on the first day of 
the medically necessary leave of absence of such dependent child.
    ``(f) Presumption.--For purposes of administrative or judicial 
proceedings, there shall be a rebuttable presumption that the 
documentation and certification under subsection (b)(3) entitles the 
dependent child involved to coverage as described under this 
section.''.

Summary: Michelle's Law - Amends the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code of 1986 to prohibit a group health plan or health insurance coverage offered in connection with such a plan from terminating the coverage of a dependent child due to a medically necessary leave of absence from a postsecondary educational institution that causes the child to lose full-time status before the date that is the earlier of: (1) one year after the first day of the leave of absence; or (2) the date on which such coverage would otherwise terminate under the terms of the plan. Requires documentation and a certification by a physician.