Michael Browning January 26, 2009

Up to this point, much of the legal consideration that was needed when implementing a dependent audit depended on whether or not your plan was governed by ERISA or state law. Many states have specific legislation on what dependents need to be covered in the plan. A great resource for information on each state’s specific laws is a webpage maintained by the National Conference of State Legislatures.
However, a recently signed piece of federal legislation will have impact on your dependent audits regardless of whether or not your plan is governed by ERISA. “Michelle’s Law” will go into effect in October of 2009. This law prevents a group health plan from removing coverage from a “dependent child” due to a “medically necessary leave of absence” before the earlier of: (1) one year after the first day of the medically necessary leave of absence; or (2) the date on which the coverage under the plan would otherwise terminate.
The law also requires that a notice of new law be included with any communications that ask for documentation of student status. As always, seeking the advice of qualified council will help to ensure that your dependent audit will comply with all applicable laws.