US · guidance
CMS Pub. 100-16, ch. mc86c18b, § 210
Excise Tax Penalties for Contributors to Nonconforming Group
Health Plans
(Rev. 30, 09-05-03)
Section 5000 of the IRC of 1986, imposes an excise tax penalty on employers and
employee organizations that contribute to nonconforming group health plans. They are
taxed 25 percent of the employer's or employee organization's expenses incurred during
the calendar year for each group health plan (conforming as well as nonconforming) to
which they contribute. This tax penalty does not apply to Federal and other
governmental employers.
The term "nonconforming group health plan" means a group health plan or LGHP that at
any time during a calendar year, fails to comply with any of the following provisions of
the working aged, disability, or ESRD Medicare secondary laws.
History
(Rev. 30, 09-05-03)
Provenance
- Source
- cms.gov
- Retrieved
- 2026-08-25
- Edition
- iom-2026-08-25
- Content hash
aca733af31010daff14e3c38a13089cf10b0238615e2c7c94865e26621b2bca3
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