Title 26 — Internal Revenue Code
Chapter 47 — Certain Group Health Plans
§ 5000. Certain group health plans
Statutory text
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.
Group health plan and large group health plan
For purposes of this section—
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.
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—
all employers treated as a single employer under subsection (a) or (b) of section 52 shall be treated as a single employer,
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
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).
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.
Government entities
For purposes of this section, the term “employer” does not include a Federal or other governmental entity.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Omnibus Budget Reconciliation Act of 1986
Pub. L. 99–509 title IX § 9319(d)(1) · 100 Stat. 1874
Enacted · 26 U.S.C. § 5000
Added Pub. L. 99–509, title IX, § 9319(d)(1), Oct. 21, 1986, 100 Stat. 2012
Source evidence
Code source credit
Added Pub. L. 99–509, title IX, § 9319(d)(1), Oct. 21, 1986, 100 Stat. 2012Enacted provision · exact public law section
(1) Subtitle D of the Internal Revenue Code of 1954 (relating to miscellaneous excise taxes) is amended by adding at the end the following new chapter: “CHAPTER 47— CERTAIN LARGE GROUP HEALTH PLANS “Sec. 5000. Certain large group health plans. “SEC. 5000. CERTAIN LARGE GROUP HEALTH PLANS. “(a) Imposition of Tax.— There is hereby imposed on any employer or employee organization that contributes to a nonconforming large 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 large group health plan to which the employer or employee organization contributes. “(b) Large Group Health Plan.— 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. “(c) Nonconforming Large Group Health Plan.— 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 42 USC 1395y. 1862(b)(4)(A)(i) 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.”.Omnibus Budget Reconciliation Act of 1989
Pub. L. 101–239 § 6202(b)(2)(A) · 103 Stat. 2106
Struck · 26 U.S.C. § 5000
Pub. L. 101–239, § 6202(b)(2)(A), struck out “large” after “Certain” in section catchline
Source evidence
Code amendment note
Pub. L. 101–239, § 6202(b)(2)(A), struck out “large” after “Certain” in section catchline.Enacted provision · exact public law section
(A) by striking “LARGE” in the heading;Omnibus Budget Reconciliation Act of 1989
Pub. L. 101–239 § 6202(b)(2)(B) · 103 Stat. 2106
Substituted · 26 U.S.C. § 5000(a)
Pub. L. 101–239, § 6202(b)(2)(B), substituted “group health plan” for “large group health plan” in two places
Source evidence
Code amendment note
Subsec. (a). Pub. L. 101–239, § 6202(b)(2)(B), substituted “group health plan” for “large group health plan” in two places.Enacted provision · exact public law section
(B) in subsection (a), by striking “large” each place it appears; andOmnibus Budget Reconciliation Act of 1989
Pub. L. 101–239 § 6202(b)(2)(C) · 103 Stat. 2106
Substituted · 26 U.S.C. § 5000(b)
Pub. L. 101–239, § 6202(b)(2)(C), substituted “Group health plan and large” for “Large” in heading
Amended · 26 U.S.C. § 5000(b)
Pub. L. 101–239, § 6202(b)(2)(C), 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.”
Source evidence
Code amendment note
Subsec. (b). Pub. L. 101–239, § 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.”Enacted provision · exact public law section
(C) by amending subsections (b) and (c) to read as follows: “(b) Group Health Plan and Large Group Health Plan.— For purposes of this section— “(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. “(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. “(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 section 1862(b)(1) of the Social Security Act.”.Omnibus Budget Reconciliation Act of 1989
Pub. L. 101–239 § 6202(b)(2)(C) · 103 Stat. 2106
Substituted · 26 U.S.C. § 5000(c)
Pub. L. 101–239, § 6202(b)(2)(C), substituted “group” for “large group” in heading
Amended · 26 U.S.C. § 5000(c)
Pub. L. 101–239, § 6202(b)(2)(C), 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.”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 101–239, § 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.”Enacted provision · exact public law section
(C) by amending subsections (b) and (c) to read as follows: “(b) Group Health Plan and Large Group Health Plan.— For purposes of this section— “(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. “(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. “(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 section 1862(b)(1) of the Social Security Act.”.Omnibus Budget Reconciliation Act of 1993
Pub. L. 103–66 § 13561(e)(2)(A)(i) · 107 Stat. 312
Changed · 26 U.S.C. § 5000(a)
Pub. L. 103–66, § 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
Source evidence
Code amendment note
Subsec. (a). Pub. L. 103–66, § 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.Effective date note
Pub. L. 103–66, title XIII, § 13561(d)(3), Aug. 10, 1993, 107 Stat. 594, 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].”Omnibus Budget Reconciliation Act of 1993
Pub. L. 103–66 § 13561(e)(2)(A)(ii) · 107 Stat. 312
Amended · 26 U.S.C. § 5000(b)(1)
Pub. L. 103–66, § 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.”
Source evidence
Code amendment note
Subsec. (b)(1). Pub. L. 103–66, § 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.”Effective date note
Pub. L. 103–66, title XIII, § 13561(d)(3), Aug. 10, 1993, 107 Stat. 594, 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].”Omnibus Budget Reconciliation Act of 1993
Pub. L. 103–66 § 13561(d)(2) · 107 Stat. 312
Inserted · 26 U.S.C. § 5000(b)(2)
Pub. L. 103–66, § 13561(d)(2), inserted at end “For purposes of the preceding sentence—”
Added · 26 U.S.C. § 5000(b)(2)
Pub. L. 103–66, § 13561(d)(2), added subpars. (A) to (C)
Source evidence
Code amendment note
Subsec. (b)(2). Pub. L. 103–66, § 13561(d)(2), inserted at end “For purposes of the preceding sentence—” and added subpars. (A) to (C).Effective date note
Pub. L. 103–66, title XIII, § 13561(d)(3), Aug. 10, 1993, 107 Stat. 594, 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].”Omnibus Budget Reconciliation Act of 1993
Pub. L. 103–66 § 13561(e)(2)(A)(iii) · 107 Stat. 312
Substituted · 26 U.S.C. § 5000(c)
Pub. L. 103–66, § 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)”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 103–66, § 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)”.Effective date note
Pub. L. 103–66, title XIII, § 13561(d)(3), Aug. 10, 1993, 107 Stat. 594, 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].”
7 of 12 references resolved to an enrolled provision · 5 partial
Editorial Notes
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.
Amendments1989–1993 · 2 rounds
1993
Subsec. (a). Pub. L. 103–66, § 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, § 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, § 13561(d)(2), inserted at end “For purposes of the preceding sentence—” and added subpars. (A) to (C).
Subsec. (c). Pub. L. 103–66, § 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, § 6202(b)(2)(A), struck out “large” after “Certain” in section catchline.
Subsec. (a). Pub. L. 101–239, § 6202(b)(2)(B), substituted “group health plan” for “large group health plan” in two places.
Subsec. (b). Pub. L. 101–239, § 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, § 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.”
Statutory Notes and Related Subsidiaries
Effective Date of 1993 Amendment
Pub. L. 103–66, title XIII, § 13561(d)(3), , 107 Stat. 594, 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 [].”
Effective Date of 1989 Amendment
Amendment by Pub. L. 101–239 applicable to items and services furnished after , 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 , 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.
Credits
1986–1993 · 3 acts
- 1986Added Pub. L. 99–509, title IX, § 9319(d)(1), , 100 Stat. 2012
- 1989amended Pub. L. 101–239, title VI, § 6202(b)(2), , 103 Stat. 2233
- 1993Pub. L. 103–66, title XIII, § 13561(d)(2), (e)(2)(A), , 107 Stat. 594, 595.
Show as published
(Added Pub. L. 99–509, title IX, § 9319(d)(1), , 100 Stat. 2012; amended Pub. L. 101–239, title VI, § 6202(b)(2), , 103 Stat. 2233; Pub. L. 103–66, title XIII, § 13561(d)(2), (e)(2)(A), , 107 Stat. 594, 595.)