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Title 26 — Internal Revenue CodeRelease 119-73not60

§9803 Guaranteed Renewability in Multi­employer Plans and Certain Multiple Employer Welfare Arrangements

Title 26 › Subtitle Subtitle K— Group Health Plan Requirements › Chapter 100— GROUP HEALTH PLAN REQUIREMENTS › Subchapter A— Requirements Relating to Portability, Access, and Renewability › § 9803

Last updated Apr 5, 2026|Official source

Summary

A group health plan that is a multiemployer plan (see section 414(f)) or a multiple employer welfare arrangement must not stop an employer from getting the same or different coverage, except for six reasons: (1) not paying required contributions; (2) fraud or knowingly lying about important facts; (3) breaking key plan rules; (4) the plan stops offering any coverage in the area; (5) for network plans, no one from the employer lives, resides, or works in the network’s service area and the rule is applied to everyone the same way and not based on claims experience or the factor in section 9802(a)(1); or (6) failing to meet terms of a collective bargaining agreement, to renew such an agreement, or to employ workers covered by it. Terms: multiemployer plan = defined in section 414(f). multiple employer welfare arrangement = defined in section 3(40) of ERISA as in effect on the date this was enacted.

Full Legal Text

Title 26, §9803

Internal Revenue Code — Source: USLM XML via OLRC

(a)A group health plan which is a multiemployer plan (as defined in section 414(f)) or which is a multiple employer welfare arrangement may not deny an employer continued access to the same or different coverage under such plan, other than—
(1)for nonpayment of contributions;
(2)for fraud or other intentional misrepresentation of material fact by the employer;
(3)for noncompliance with material plan provisions;
(4)because the plan is ceasing to offer any coverage in a geographic area;
(5)in the case of a plan that offers benefits through a network plan, because there is no longer any individual enrolled through the employer who lives, resides, or works in the service area of the network plan and the plan applies this paragraph uniformly without regard to the claims experience of employers or a factor described in section 9802(a)(1) in relation to such individuals or their dependents; or
(6)for failure to meet the terms of an applicable collective bargaining agreement, to renew a collective bargaining or other agreement requiring or authorizing contributions to the plan, or to employ employees covered by such an agreement.
(b)For purposes of subsection (a), the term “multiple employer welfare arrangement” has the meaning given such term by section 3(40) of the Employee Retirement Income Security Act of 1974, as in effect on the date of the enactment of this section.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 3(40) of the Employee Retirement Income Security Act of 1974, referred to in subsec. (b), is classified to section 1002(40) of Title 29, Labor. The date of the enactment of this section, referred to in subsec. (b), is the date of enactment of Pub. L. 104–191, which was approved Aug. 21, 1996.

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable to plan years beginning after June 30, 1997, see section 401(c) of Pub. L. 104–191, set out as a note under section 9801 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 9803

Title 26 — Internal Revenue Code

Last Updated

Apr 5, 2026

Release point: 119-73not60