
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[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.
