I.R.C. § 5000(a) Imposition Of Tax —
There is hereby imposed on any employer (including a self-employed person) or employee
organization that contributes to a nonconforming group health plan a tax equal to
25 percent of the employer's or employee organization's expenses incurred during
the calendar year for each group health plan to which the employer
(including a self-employed person) or employee organization contributes.
I.R.C. § 5000(b) Group Health Plan And Large Group Health Plan —
For purposes of this section—
I.R.C. § 5000(b)(1) Group Health Plan —
The term “group health plan” means a plan
(including a self-insured plan) of, or contributed to by, an employer
(including a self-employed person) or employee organization to provide health care
(directly or otherwise) to the employees, former employees, the employer, others
associated or formerly associated with the employer in a business relationship, or
their families.
I.R.C. § 5000(b)(2) Large Group Health Plan —
The term “large group health plan” means a plan of, or contributed to by, an employer
or employee organization
(including a self-insured plan) to provide health care (directly or otherwise) to
the employees, former employees, the employer, others associated or formerly associated
with the employer in a business
relationship, or their families, that covers employees of at least one employer that
normally employed at least 100 employees on a typical
business day during the previous calendar year.
For purposes of the preceding sentence—
I.R.C. § 5000(b)(2)(A) —
all employers treated as a single employer under subsection (a) or (b) of section
52 shall be treated as a single
employer,
I.R.C. § 5000(b)(2)(B) —
all employees of the members of an affiliated service group (as defined in section
414(m)) shall be treated as employed by a single employer, and
I.R.C. § 5000(b)(2)(C) —
leased employees (as defined in section 414(n)(2))
shall be treated as employees of the person for whom they perform services to the
extent they are so treated under section 414(n).
I.R.C. § 5000(c) Nonconforming Group Health Plan —
For purposes of this section, the term “nonconforming group health plan” means a
group health plan or large group health plan that at any time during a calendar year
does not comply with the requirements of subparagraphs (A) and (C) or subparagraph
(B), respectively, of paragraph (1), or with the requirements of paragraph (2), of
section 1862(b)
of the Social Security Act.
I.R.C. § 5000(d) Government Entities —
For purposes of this section, the term “employer”
does not include a Federal or other governmental entity.
(Added Pub. L. 99-509, title IX, Sec. 9319(d)(1), Oct. 21, 1986, 100 Stat. 2012, and amended Pub. L. 101-239, title VI, Sec.
6202(b)(2), Dec. 19, 1989, 103 Stat. 2233; Pub. L. 103-66, title XIII, Sec. 13561(d)(2), (e)(2), Aug. 10, 1993, 107 Stat. 312.)
BACKGROUND NOTES
AMENDMENTS
1993 - Subsec. (a). Pub. L. 103-66, Sec. 13561(e)(2)(A)(i), amended subsec. (a) by inserting “(including a self-employed person)” after “employer”
each place it appears.
Subsec. (b)(1). Pub. L. 103-66, Sec. 13561(e)(2)(A)(ii), amended par. (1). Before amendment, it read as follows:
“(1) Group health plan.—The term ‘group health plan' means any plan of, or contributed
to by, an employer (including a self-insured plan)
to provide health care (directly or otherwise) to the employer's employees, former
employees, or the families of such employees or former employees.”
Subec. (b)(2). Pub. L. 103-66, Sec. 13561(d)(2), amended par. (2) by adding a new sentence at the end.
Subsec. (c). Pub. L. 103-66, Sec. 13561(e)(2)(A)(iii), amended subsec. (c) by substituting “of paragraph (1) or with the requirements of
paragraph (2) of section 1862(b)” for “of section 1862(b)(1)”.
1989 - Pub. L. 101-239, Sec. 6202(b)(2)(A), struck out ‘large’ after ‘Certain’ in section catchline.
Subsec. (a). Pub. L. 101-239, Sec. 6202(b)(2)(B), substituted ‘group health plan’ for ‘large group health plan’ in two places.
Subsec. (b). Pub. L. 101-239, Sec. 6202(b)(2)(C), substituted ‘Group health plan and large’ for ‘Large’ in heading and amended text
generally. Prior to amendment, text read as follows:
‘For purposes of this section, the term ‘large group health plan’
means a plan of, or contributed to by, an employer or employee organization
(including a self-insured plan) to provide health care (directly or otherwise) to
the employees, former employees, the employer, others associated or formerly associated
with the employer in a business relationship, or their families, that covers employees
of at least one employer that normally employed at least 100 employees on a typical
business day during the previous calendar year.'
Subsec. (c). Pub. L. 101-239, Sec. 6202(b)(2)(C), substituted ‘group’ for ‘large group’ in heading and amended text generally. Prior
to amendment, text read as follows: ‘For purposes of this section, the term ‘nonconforming
large group health plan’
means a large group health plan that at any time during a calendar year does not comply
with the requirements of section 1862(b)(4)(A)(i) of the Social Security Act.'
EFFECTIVE DATE OF 1993 AMENDMENTS
Amendment by Section 13561(d)(2) of Pub. L. 103-66 effective 90 days after the date of the enactment of this Act [Enacted: Aug. 10,
1993].
Amendments by Section 13561(e)(2)
of Pub. L. 103-66 effective on the date of the enactment of this Act [Enacted: Aug. 10, 1993].
EFFECTIVE DATE OF 1989 AMENDMENT
Amendment by Pub. L. 101-239 applicable to items and services furnished after Dec. 19, 1989, see section 6202(b)(5)
of Pub. L. 101-239, set out as a note under section 162 of this title.
EFFECTIVE DATE
Section applicable to items and services furnished on or after Jan. 1, 1987, see section
9319(f) of Pub. L. 99-509, set out as an Effective Date of 1986 Amendment note under section 1395y of Title
42, The Public Health and Welfare.
