1. Short title This Act may be cited as the Flexibility Through Lower Expenses Health Care Act or the FLEX Act . 2. Short-term limited duration insurance defined (a) In general Section 2791(b) of the Public Health Service Act ( 42 U.S.C. 300gg–91(b) ) is amended by adding at the end the following: (6) Short-term limited duration insurance The term short-term limited duration insurance means health insurance coverage provided pursuant to a contract with a health insurance issuer that has an expiration date specified in the contract (not taking into account any extensions that may be elected by the policyholder with or without the issuer’s consent) that is less than 12 months after the original effective date of the contract. . (b) Applicability The amendments made by this subsection shall apply with respect to contracts for short-term limited duration insurance that take effect on or after January 1, 2020. 3. Definition of employer under ERISA with respect to group health plans (a) Definition of employer Section 3(5) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1002(5) ) is amended by striking the period and inserting (which, with respect to a group health plan, shall be determined in accordance with criteria that includes the criteria under section 735). . (b) Group health plans (1) In general Part 7 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1181 et seq.) is amended by adding at the end the following: 735. Definition of employer with respect to group health plans (a) In general A group or association of employers that meets the criteria under subsection (b) shall be considered an employer under section 3(5) for purposes of sponsoring a group health plan. (b) Requirements The requirements under this subsection are each of the following: (1) The primary purpose of the group or association may be to offer and provide health coverage to its employer members and their employees, if such group or association has at least 1 substantial business