26 U.S.C. § 5000 : US Code - Section 5000: Certain group health plans

Search 26 U.S.C. § 5000 : US Code - Section 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.