Title 26Internal Revenue CodeRelease 119-73not60

§9703 Plan Benefits

Title 26 › Subtitle Subtitle J— Coal Industry Health Benefits › Chapter 99— COAL INDUSTRY HEALTH BENEFITS › Subchapter B— Combined Benefit Fund › Part I— ESTABLISHMENT AND BENEFITS › § 9703

Last updated Apr 5, 2026|Official source

Summary

Trustees must enroll eligible people in prepaid health plans that give health care. They must use available plan money so coverage is, as much as possible, the same as the 1950 and 1974 UMWA Benefit Plans as of January 1, 1992. Each year trustees will negotiate payment rates that can differ by area so people everywhere get a similar level of benefits, but total payments from the Combined Fund for a year cannot be more than the total premiums required under section 9704(a) for that year. That cap is reduced by death benefit premiums under section 9704(c) and by the amount set aside for administration under subsection (d), and it can be increased by reductions from transfers under section 9705, by certain carryovers from earlier years under 9704(e)(3)(B)(i) if the trustees choose to use them, and by any interest the trustees choose to use. Trustees may not contract with providers who need Medicare certification under title XVIII unless the provider is certified. Health benefits begin on and after February 1, 1993. The trustees may hold back up to 5 percent of premiums each year for administration. The Combined Fund may only enroll people who were receiving benefits under the 1950 or 1974 UMWA Benefit Plans on July 20, 1992. For certain eligible people who were retirees receiving benefits on July 20, 1992, trustees must provide death benefits that match what the 1950 or 1974 UMWA Pension Plan (as appropriate) provided on July 20, 1992, starting on and after February 1, 1993. The 1950 and 1974 Pension Plans must be changed so they stop providing those death benefits on and after February 1, 1993. "Eligible beneficiary" means either a coal industry retiree who was eligible for and receiving benefits from the 1950 or 1974 plans on July 20, 1992, or someone receiving benefits on that date because of their relationship to such a retiree.

Full Legal Text

Title 26, §9703

Internal Revenue Code — Source: USLM XML via OLRC

(a)Each eligible beneficiary of the Combined Fund shall receive—
(1)health benefits described in subsection (b), and
(2)in the case of an eligible beneficiary described in subsection (f)(1), death benefits coverage described in subsection (c).
(b)(1)The trustees of the Combined Fund shall provide health care benefits to each eligible beneficiary by enrolling the beneficiary in a health care services plan which undertakes to provide such benefits on a prepaid risk basis. The trustees shall utilize all available plan resources to ensure that, consistent with paragraph (2), coverage under the managed care system shall to the maximum extent feasible be substantially the same as (and subject to the same limitations of) coverage provided under the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan as of January 1, 1992.
(2)(A)The trustees of the Combined Fund shall negotiate payment rates with the health care services plans described in paragraph (1) for each plan year which are in amounts which—
(i)vary as necessary to ensure that beneficiaries in different geographic areas have access to a uniform level of health benefits; and
(ii)result in aggregate payments for such plan year from the Combined Fund which do not exceed the total premium payments required to be paid to the Combined Fund under section 9704(a) for the plan year, adjusted as provided in subparagraphs (B) and (C).
(B)The amount determined under subparagraph (A)(ii) for any plan year shall be reduced—
(i)by the aggregate death benefit premiums determined under section 9704(c) for the plan year, and
(ii)by the amount reserved for plan administration under subsection (d).
(C)The amount determined under subparagraph (A)(ii) shall be increased—
(i)by any reduction in the total premium payments required to be paid under section 9704(a) by reason of transfers described in section 9705,
(ii)by any carryover to the plan year from any preceding plan year which—
(I)is derived from amounts described in section 9704(e)(3)(B)(i), and
(II)the trustees elect to use to pay benefits for the current plan year, and
(iii)any interest earned by the Combined Fund which the trustees elect to use to pay benefits for the current plan year.
(3)The trustees of the Combined Fund shall not enter into an agreement under paragraph (1) with any provider of services which is of a type which is required to be certified by the Secretary of Health and Human Services when providing services under title XVIII of the Social Security Act unless the provider is so certified.
(4)Benefits shall be provided under paragraph (1) on and after February 1, 1993.
(c)(1)The trustees of the Combined Fund shall provide death benefits coverage to each eligible beneficiary described in subsection (f)(1) which is identical to the benefits provided under the 1950 UMWA Pension Plan or 1974 UMWA Pension Plan, whichever is applicable, on July 20, 1992. Such coverage shall be provided on and after February 1, 1993.
(2)The 1950 UMWA Pension Plan and the 1974 UMWA Pension Plan shall each be amended to provide that death benefits coverage shall not be provided to eligible beneficiaries on and after February 1, 1993. This paragraph shall not prohibit such plans from subsequently providing death benefits not described in paragraph (1).
(d)The trustees of the Combined Fund may reserve for each plan year, for use in payment of the administrative costs of the Combined Fund, an amount not to exceed 5 percent of the premiums to be paid to the Combined Fund under section 9704(a) during the plan year.
(e)The Combined Fund shall not enroll any individual who is not receiving benefits under the 1950 UMWA Benefit Plan or the 1974 UMWA Benefit Plan as of July 20, 1992.
(f)For purposes of this subchapter, the term “eligible beneficiary” means an individual who—
(1)is a coal industry retiree who, on July 20, 1992, was eligible to receive, and receiving, benefits from the 1950 UMWA Benefit Plan or the 1974 UMWA Benefit Plan, or
(2)on such date was eligible to receive, and receiving, benefits in either such plan by reason of a relationship to such retiree.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Social Security Act, referred to in subsec. (b)(3), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Title XVIII of the Act is classified generally to subchapter XVIII (§ 1395 et seq.) of chapter 7 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.

Reference

Citations & Metadata

Citation

26 U.S.C. § 9703

Title 26Internal Revenue Code

Last Updated

Apr 5, 2026

Release point: 119-73not60