Michelle's Law Significant impact in Company Benefits - Literature review Example

Michelles Law Significant impact in Company Benefits Michelle’s law might not be happily welcome by many group health plans especially because of its harsh measures that ensure the students are covered even while on medical leave. However, this law is of benefit to both the student and the group health plans. This paper is going to asses the significance of this law in regard to its impact to these companies. Michelles Law Significant impact in Company Benefits Introduction According to Michele’s law, college students are allowed to take up to 12 months medical leave (Olivia et al, 2003, p. 21). However, Michelle’s law applies to students who are covered under their parent’s health insurance plan. This means that the companies generate income from such students. Michelle’s law forbids a group health plan from terminating a student on under medical cover due to medically necessary leave from college (Dicken, 2008, p. 34). In one way or another, the health insurance companies may find it difficult to continue paying for medical services for such students (Congress, Joint Committee on Taxation 2008, p. 539). Nevertheless, it can be argued that this law may be seen to be tough on insurance companies but it is for the benefit of both the students and the company (Olivia et al, 2003, p. 51). According to (Congress, Joint Committee on Taxation 2008, p. 539), although insurance companies would base their dissatisfaction with this law on the basis that the students are supposed to be covered while in college, there is no loss that the company would be experiencing by the fact that the student is given a compulsory medical leave (Olivia et al, 2003, p 51). Therefore, I fully support Michelle’s law. However, according to the laws that governs the group health plans, it is against their spirit to have law that oppose their operations and discipline among their customers (Munn & Pruden, 2006, p. 27). In some instances, if such a case of student on compulsory medical leave happens to several students, the group health plans may find it hard to finance their health bills at a go (Dicken, 2008, p. 34). However, very few such incidences have been reported. It is therefore important for these companies to not only look at their losing side but also look into the welfare of their customers and their health (United States Congress, 2010, p. 1029). In most cases, the insurance companies rarely pay for medical services for their customers (Dicken, 2008, p. 34) since very few people fall ill with serious sicknesses. In this regard, it would be unjustified for these companies not to fulfill their duty of taking care of their customers just because students have to be compensated even when out of school (United States Congress, 2010, p. 1029). In fact, the companies should be in full support of this law since it creates a kind of confidence to their customers. Most parents would like to be covered by companies that would take care of their children even in conditions that require them to take a college leave (Shilling, 2009, p. 16). People would not wish to get sick just for their insurer to repay back the premiums they have been paying. Therefore, these companies should actually be in support of this law since they tend to gain much out of it. It can also be argued that Michelle’s law is of many benefits to both the parents and their students. Although the students are given a leave for their treatments, they benefit in other ways. Firstly, they have an opportunity to continue with their education even as they undergo their medication (United States Congress, 2010, p. 1029). So, this means that no school administrator can deny them the opportunity to learn at interval times depending on their medication timetable and recovery. The other thing is that the students benefit from continued support from their group health plans even when they are not in school. On the other hand, Michelle’s law help improve the health care of the whole nation at large (United States Congress, 2010, p. 1029). When students are put into a health care scheme that caters for their medication even when they are out of college, they are sure of the safety of their health all the time. A nation that is healthy will always develop in many of its social and economic sectors. On the side of the insurance companies that adhere to Michelle’s law, they benefit more in terms of creating a positive picture to the public (Dianne, 2011, p. 470). People builds up their trust on such companies and invest in them. This leads to improved capital which goes a long way in expanding their group health plans in many parts of the nation and probably in other nations (United States Congress, 2010, p. 1029). The more the company insures many people because of their trust and loyalty to it, the more it generates more income, and this means that the government generates more income from them. It would be unfair for the insurance companies not to pay for the medical services of a student diagnosed with a serious sickness, just because they have been given a compulsory medical leave (United States Congress, 2010, p. 1029). On the other hand, group health plans benefit more when they pay for medication of students even when they are outside the school. Many parents would like health plans that cater for such situations to their children (Munn & Pruden, 2006, p. 27). Consequently, the group health plans receive more customers something that help them make profits and most importantly because not all customers have such cases of illnesses (Dianne, 2011, p. 470). Moreover, Michelle’s law only applies to few specific provisions and not to all types of insurances covers in these companies (Dianne, 2011, p. 470). Therefore, Michelle’s law is just a fraction of their products which should actually act as selling factor for them. Conclusion Although Michelle’s law is seen to somehow benefit the students more than the insurance companies do, it is apparent that at the end of it, the companies benefits in the long-term goals. In fact, only a few cases may arise within a long period of time. Moreover, this law applies to students who have already enrolled in group health plans, meaning that the companies generate income from the students. It is important the law be reviewed a bit critically in order to ensure that the companies are not taken advantage of by students who would sometimes exaggerate their medical situation. Nonetheless, since the law provides that the medical leave be approved by a medical doctor, it is also important to focus on alternative means of treating the students, perhaps while in college. In order to ensure that the law balances its benefits to both the students and the group health plans, the government should maybe consider regulating the payments of the medications of students on college leave so that both the group health plans and the students would equally benefit. References: Congress, Joint Committee on Taxation (2008). General Explanation of Tax Legislation Enacted in the 110th Congress. Government Printing Office (539). Retrieved on Jan 31st 2012 from http://books.google.co.ke/books?id=lv-yGOz9pGMC&pg=PA539&dq=michelle%27s+law&hl=en&sa=X&ei=0msoT4DjGc6q-gbH-fzFBQ&ved=0CDcQ6AEwAQ#v=onepage&q=michelle%27s%20law&f=false Olivia S Mitchell; et al (2003). Benefits for the workplace of the future. Philadelphia [Pa.]: University of Pennsylvania Press. (51). retrieved on 31st Jan 2012 from http://books.google.co.ke/books?id=k0WV3doBbcsC&pg=PA55&dq=Michelle%27s+La w+Significant+impact+in+Company+Benefits&hl=en&sa=X&ei=_mcoT_jnDsar- QaipPTMBQ&ved=0CGUQ6AEwCTgK#v=onepage&q=Michelle%27s%20Law%20Sig nificant%20impact%20in%20Company%20Benefits&f=false U.S congress (2009). United States of America Congressional Record Proceedings and Debates of the 110th Congress Second Session Volume 154-Part 12: Government Printing Office. (1029). Retrieved on 31st Jan 2012 from http://books.google.co.ke/books?id=vLiPUicb9gAC&pg=PA1029&dq=michelle%27s+la w&hl=en&sa=X&ei=0msoT4DjGc6q-gbH- fzFBQ&ved=0CDwQ6AEwAg#v=onepage&q=michelle%27s%20law&f=false Dianne H. R (2011). An invitation to health: choosing to change. [14th Ed.] Belmont, CA: Wadsworth/Cengage Learning. (470. Retrieved on 31st Jan 2012 from http://books.google.co.ke/books?id=yPa0LZXizO4C&pg=PA470&dq=importance+of+m ichelle%27s+law&hl=en&sa=X&ei=aXAoT7vHLoWq-gbY- NHEBQ&ved=0CDgQ6AEwAg#v=onepage&q=importance%20of%20michelle%27s%2 0law&f=false Dicken, E. J. (2008). Health Insurance: Most College Students are Covered Through Employer- Sponsored Plans, and Some Colleges and States are Taking Steps to Increase Coverage. DIANE Publishing. Retrieved on 31st Jan 2012 from http://books.google.co.ke/books?id=VN- w0ZbKoNwC&pg=PA34&dq=Michelle%27s+Law+and+College+Health+Insurance&hl =en&sa=X&ei=d3MoT9nwFMOkgb1_LHCDQ&ved=0CD8Q6AEwAQ#v=onepage&q=Michelle%27s%20Law%20and%20College%20Health%20Insurance&f=false (34) Shilling, D. (2009). The complete guide to human resources and the law. Austin: Wolters Kluwer Law & Business. Retrieved on 31st Jan 2012 from http://books.google.co.ke/books?id=ZL7HLHRjkrAC&pg=SA18- PA16&dq=Michelle%27s+Law+and+College+Health+Insurance&hl=en&sa=X&ei=d3 MoT9nwFMOkgb1_LHCDQ&ved=0CEkQ6AEwAw#v=onepage&q=Michelle%27s%20 Law%20and%20College%20Health%20Insurance&f=false(16) Munn, J. & Pruden, P (2006). Children with Cancer: A Comprehensive Reference Guide for Parents. Oxford: Oxford Univ Press. (27) Retrieved on 31st Jan 2012 from http://books.google.co.ke/books?id=m9ERaEl6xwC&pg=PT308&dq=Michelle%27s+Law+and+College+Health+Insurance&hl=en&sa=X&ei=d3MoT9nwFMOk-gb1_LHCDQ&ved=0CGUQ6AEwCA#v=onepage&q=Michelle%27s%20Law%20and%20College%20Health%20Insurance&f=false Read More