- Posted by Jessica Waltman
- On March 16, 2018
By now, your employees should have received at least one tax form in the mail providing information about the employer-sponsored health insurance coverage they had and/or was offered to them during the 2017 tax year. To help your company proactively answer their questions, here is an overview of the Forms 1095 B and/or C and how they may be used by employees.
If you offer a fully-insured health plan, then your covered employees and their dependents should have received a Form 1095B from your health insurance carrier. If you offer a self-funded plan, and you are not a large enough employer required to comply with the Patient Protection and Affordable Care Act (ACA)’s employer mandate requirement, then your company should have sent the individuals who were covered by your health plan in 2017 a Form 1094B by March 2, 2018. This form documents that they had minimum essential health insurance coverage for all the applicable months of the 2017 tax year for the purposes of the individual shared responsibility requirements (individual mandate). Since the individual mandate is still in full force for both the 2017 and 2018 tax years, taxpayers still need to get this form. If for any reason a covered employee didn’t receive it and you have fully-insured coverage, then you need to contact your carrier.
If you are an applicable large employer and subject to the ACA’s employer mandate, then you should have sent all the employees you offered coverage to during the 2017 tax year a Form 1095C by March 2, 2017, regardless if they actually enrolled in your group coverage or not. Plans that offer self-funded coverage should have also used Part Three of Form 1095C to indicate who in each family had coverage under the plan during the 2017 tax year. Employees who were also offered coverage through a spouse’s employer group plan, or who were offered coverage through a different employer for part of the year may receive multiple Forms 1095 C. Employees may use their Forms 1095 C to document eligibility for an advance premium tax credit. If they were covered by your self-funded plan, then their Form 1095C shows if they satisfied the terms of the individual mandate for 2017 too.
Employees do not need their Forms 1095 B and/or C to file their personal income tax return, nor do they need to include copies of their forms in with their personal tax filings. However, they should keep any Forms 1095 B and/or C they receive with their tax records for the year. That way, they will have them on-hand should they be audited. Individuals should also save their Forms 1095 B and/or C with their tax records in case they otherwise need to verify their coverage status regarding either their satisfaction of the individual mandate or their eligibility for an advance premium tax credit.
If you need an additional resource to refer your employees to regarding Forms 1095 B & C, the IRS has an information page available for consumers with questions.
By Jessica Waltman, Special Contributor
Jessica Waltman is a health reform strategist, with more than 20 years of experience in health insurance markets and health policy. She is the former Senior Vice President, Government Affairs, for the National Association of Health Underwriters.