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42 U.S. Code § 300e-9. Employees’ health benefits plans
(a) Regulations; membership optionIn accordance with regulations which the Secretary shall prescribe—
(1) each employer—
(A)
which is required during any calendar quarter to pay its employees the minimum wage prescribed by section 206 of title 29 (or would be required to pay its employees such wage but for section 213(a) of title 29), and
(B)
which during such calendar quarter employed an average number of employees of not less than 25, and
(2)
any State and each political subdivision thereof which during any calendar quarter employed an average number of employees of not less than 25, as a condition of payment to the State of funds under section 247b, 247c, or 300a of this title,
which offers to its employees in the calendar year beginning after such calendar quarter the option of membership in a qualified health maintenance organization which is engaged in the provision of basic health services in a health maintenance organization service area in which at least 25 of such employees reside shall meet the requirements of subsection (b) with respect to any qualified health maintenance organization offered by the employer or State or political subdivision.