July 24, 2014
IRS Releases Forms for PPACA Information Reporting
On July 24, the Internal Revenue Service (IRS) released draft forms to be used by applicable large employers and insurers for reporting information regarding health care coverage and “minimum essential coverage” as required under the Patient Protection and Affordable Care Act (PPACA):
- Form 1094-B: Transmittal of Health Coverage Information Returns
- Form 1095-B: Health Coverage
- Form 1094-C: Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Return
- Form 1095-C: Employer Provided Health Insurance Offer and Coverage
As we reported in the March 5 Benefits Byte, final regulations were issued earlier in the year implementing the reporting of minimum essential coverage (MEC) under Section 6055 of the Internal Revenue Code) and the reporting of health insurance coverage under Section 6056 of the Internal Revenue Code. These reporting requirements were delayed for 2014 under previously issued Notice 2013-45 transition relief and will not be effective until 2015 (first reporting is due in early 2016). As stated in prior regulatory guidance, the IRS is encouraging voluntary reporting for coverage in 2014.
Code Section 6055 requires every health insurance issuer, sponsor of a self-insured health plan, government agency that administers government-sponsored health insurance programs and other entities that provide minimum essential coverage to file annual returns reporting certain information for each individual for whom minimum essential coverage is provided and to provide a copy of the return to the individual. Form 1095-B is to be used to comply with Code Section 6055. Form 1094-B is to be used to transmit these returns to the IRS.
Code Section 6056 requires every applicable large employer (generally, an employer that employed on average at least 50 full-time employees or equivalents) to file a return with the IRS that reports the terms and conditions of the health care coverage provided to the employer's full-time employees during the year. Form 1095-C is to be used to satisfy this requirement. Form 1094-C is to be used to transmit these returns.
Applicable large employers that sponsor self-insured plans are required to report the information required under both Section 6055 and Section 6056 on a single combined form using Form 1095-C.
The IRS is accepting comments on the draft forms. Comments may be submitted on the Comment on Tax Forms and Publications page on IRS.gov. Although no comment deadline is identified, comments should be submitted as soon as possible as final forms are expected to be posted by the end of the year. Instructions were not released today, but it is anticipated that they will be issued in draft form sometime in August.
To provide input for possible Council comments on the draft forms, or for more information, contact Kathryn Wilber, senior counsel, health policy, at (202) 289-6700.