SEC. 2721. EXCLUSION OF CERTAIN PLANS.
Title[ Title I\Subtitle A\Sec. 102 Contents
<<NOTE: 42 USC 300gg-21.>>
``(a) Exception for Certain Small Group Health Plans.--The
requirements of subparts 1 and 2 shall not apply to any group health
plan (and health insurance coverage offered in connection with a group
health plan) for any plan year if, on the first day of such plan year,
such plan has less than 2 participants who are current employees.
``(b) Limitation on Application of Provisions Relating to Group
Health Plans.--
``(1) In general.--The requirements of subparts 1 and 2
shall apply with respect to group health plans only--
``(A) subject to paragraph (2), in the case of a
plan that is a nonfederal governmental plan, and
``(B) with respect to health insurance coverage
offered in connection with a group health plan
(including such a plan that is a church plan or a
governmental plan).
``(2) Treatment of nonfederal governmental plans.--
``(A) Election to be excluded.--If the plan sponsor
of a nonfederal governmental plan which is a group
health plan to which the provisions of subparts 1 and 2
otherwise apply makes an election under this
subparagraph (in such form and manner as the Secretary
may by regulations prescribe), then the requirements of
such subparts insofar as they apply directly to group
health plans (and not merely to group health insurance
coverage) shall not apply to such governmental plans for
such period except as provided in this paragraph.
``(B) Period of election.--An election under
subparagraph (A) shall apply--
``(i) for a single specified plan year, or
``(ii) in the case of a plan provided pursuant
to a collective bargaining agreement, for the term
of such agreement.
An election under clause (i) may be extended through
subsequent elections under this paragraph.
``(C) Notice to enrollees.--Under such an election,
the plan shall provide for--
``(i) notice to enrollees (on an annual basis
and at the time of enrollment under the plan) of
the fact and consequences of such election, and
``(ii) certification and disclosure of
creditable coverage under the plan with respect to
enrollees in accordance with section 2701(e).
``(c) Exception for Certain Benefits.--The requirements of subparts
1 and 2 shall not apply to any group health plan (or group health
insurance coverage) in relation to its provision of excepted benefits
described in section 2791(c)(1).
``(d) Exception for Certain Benefits If Certain Conditions Met.--
``(1) Limited, excepted benefits.--The requirements of
subparts 1 and 2 shall not apply to any group health plan (and
group health insurance coverage offered in connection with a
group health plan) in relation to its provision of excepted
benefits described in section 2791(c)(2) if the benefits--
``(A) are provided under a separate policy,
certificate, or contract of insurance; or
``(B) are otherwise not an integral part of the
plan.
``(2) Noncoordinated, excepted benefits.--The requirements
of subparts 1 and 2 shall not apply to any group health plan
(and group health insurance coverage offered in connection with
a group health plan) in relation to its provision of excepted
benefits described in section 2791(c)(3) if all of the following
conditions are met:
``(A) The benefits are provided under a separate
policy, certificate, or contract of insurance.
``(B) There is no coordination between the provision
of such benefits and any exclusion of benefits under any
group health plan maintained by the same plan sponsor.
``(C) Such benefits are paid with respect to an
event without regard to whether benefits are provided
with respect to such an event under any group health
plan maintained by the same plan sponsor.
``(3) Supplemental excepted benefits.--The requirements of
this part shall not apply to any group health plan (and group
health insurance coverage) in relation to its provision of
excepted benefits described in section 27971(c)(4) if the
benefits are provided under a separate policy, certificate, or
contract of insurance.
``(e) Treatment of Partnerships.--For purposes of this part--
``(1) Treatment as a group health plan.--Any plan, fund, or
program which would not be (but for this subsection) an employee
welfare benefit plan and which is established or maintained by a
partnership, to the extent that such plan, fund, or program
provides medical care (including items and services paid for as
medical care) to present or former partners in the partnership
or to their dependents (as defined under the terms of the plan,
fund, or program), directly or through insurance, reimbursement,
or otherwise, shall be treated (subject to paragraph (2)) as an
employee welfare benefit plan which is a group health plan.
``(2) Employer.--In the case of a group health plan, the
term `employer' also includes the partnership in relation to any
partner.
``(3) Participants of group health plans.--In the case of a
group health plan, the term `participant' also includes--
``(A) in connection with a group health plan
maintained by a partnership, an individual who is a
partner in relation to the partnership, or
``(B) in connection with a group health plan
maintained by a self-employed individual (under which
one or more employees are participants), the self-
employed individual, if such individual is, or may become, eligible to receive a
benefit under the plan or such individual's beneficiaries may be
eligible to receive any such benefit.
``
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