Employers should be aware of two recently enacted federal laws which relate to to employee health care. First, the new federal Mental Health Parity Act (the “Act”) was passed by Congress as part of the economic bail-out plan on October 3, 2008. The law seeks to bring parity to insurance coverage for treatment of mental health and mental illness (including substance abuse), as compared to that of physical aliments. The Act applies only to those enrolled in a group health plan of 50 of more employees that already provides benefits for both physical and mental health disorders. Under the new law, such insurance plans are prohibited from providing different deductibles, copayments, or limiting frequency of treatment and days of coverage for mental health care, as compared to physical ailment care. Mental health or substance use benefit coverage is not required, but if such coverage is offered it must be provided at parity. For most employers affected by the Act, the new law took effect on January 1, 2009.
Second, Congress has finally closed a health insurance loophole on whether dependent college students can lose medical coverage for taking time off from school for medical reasons. While most employee health plans only cover dependents over age 18 if they are full-time students (and under a certain age), a new federal law will protect dependent college students from losing their health insurance in the event of serious medical illness. “Michelle’s Law,” signed by President Bush on October 9, 2008, amends the Employee Retirement Income Security Act of 1974, the Public Health Service Act and the Internal Revenue Code of 1986 to allow full-time college students to take a year of medical leave without the risk of losing their insurance. The law will become effective in October 2009. The law does not compel insurance companies to cover any new individuals, but prevents them from dropping coverage under these circumstances.
Second, Congress has finally closed a health insurance loophole on whether dependent college students can lose medical coverage for taking time off from school for medical reasons. While most employee health plans only cover dependents over age 18 if they are full-time students (and under a certain age), a new federal law will protect dependent college students from losing their health insurance in the event of serious medical illness. “Michelle’s Law,” signed by President Bush on October 9, 2008, amends the Employee Retirement Income Security Act of 1974, the Public Health Service Act and the Internal Revenue Code of 1986 to allow full-time college students to take a year of medical leave without the risk of losing their insurance. The law will become effective in October 2009. The law does not compel insurance companies to cover any new individuals, but prevents them from dropping coverage under these circumstances.
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