§ 5000. — Certain group health plans.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 26USC5000]
TITLE 26--INTERNAL REVENUE CODE
Subtitle D--Miscellaneous Excise Taxes
CHAPTER 47--CERTAIN GROUP HEALTH PLANS
Sec. 5000. Certain group health plans
(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 or employee organization
contributes.
(b) Group health plan and large group health plan
For purposes of this section--
(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.
(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--
(A) all employers treated as a single employer under
subsection (a) or (b) of section 52 shall be treated as a single
employer,
(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
(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).
(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.
(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; 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)(A), Aug. 10, 1993, 107 Stat. 594, 595.)
References in Text
Section 1862(b) of the Social Security Act, referred to in subsec.
(c), is classified to section 1395y(b) of Title 42, The Public Health
and Welfare.
Amendments
1993--Subsec. (a). Pub. L. 103-66, Sec. 13561(e)(2)(A)(i), which
directed insertion of ``(including a self-employed person)'' after
``employer'', was executed by making the insertion after ``employer''
the first time it appeared, to reflect the probable intent of Congress.
Subsec. (b)(1). Pub. L. 103-66, Sec. 13561(e)(2)(A)(ii), amended
heading and text of par. (1) generally. Prior to amendment, text read as
follows: ``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.''
Subsec. (b)(2). Pub. L. 103-66, Sec. 13561(d)(2), inserted at end
``For purposes of the preceding sentence--'' and added subpars. (A) to
(C).
Subsec. (c). Pub. L. 103-66, Sec. 13561(e)(2)(A)(iii), substituted
``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 Amendment
Section 13561(d)(3) of Pub. L. 103-66 provided that: ``The
amendments made by this subsection [amending this section and section
1395y of Title 42, The Public Health and Welfare] shall take effect 90
days after the date of the enactment of this Act [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.
Section Referred to in Other Sections
This section is referred to in sections 4980B, 6103, 9832 of this
title; title 29 section 2614; title 42 sections 300bb-8, 1395y, 1396e.
