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.
