United States Code/Title 26/Chapter 47/Section 5000

Title 26—Internal Revenue Code

Subtitle D—Miscellaneous Excise Taxes

Chapter 47—Certain Group Health Plans

Section 5000—Certain group health plans

. 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—


 * (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.