SEC. 705. SPECIAL RULES RELATING TO GROUP HEALTH PLANS.
Title[ Title I\Subtitle A\Sec. 101 Contents
<<NOTE: 29 USC 1185.>>
``(a) General Exception for Certain Small Group Health Plans.--The
requirements of this part shall not apply to any group health plan (and
group 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) Exception for Certain 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 706(c)(1).
``(c) Exception for Certain Benefits if Certain Conditions Met.--
``(1) Limited, excepted benefits.--The requirements of this
part 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 706(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 this part 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 706(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 706(c)(4) if the benefits
are provided under a separate policy, certificate, or contract
of insurance.
``(d) 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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