The IRS has released finalized versions of two important tax forms that employers and all health insurance providers will need to file for the 2015 calendar year.
Under IRC Code Sec. 6055, health insurance providers offering "minimum essential coverage" (MEC) must file annual returns that report to each individual that receives health care coverage. This allows the IRS to verify the individuals maintained health coverage and also reconcile the months in which they were covered. Typically, the health insurance companies will provide form 1095 to its covered individuals, but those employers with self-funded plans will be also required to complete the form and filing requirement.
The IRS also requires all "applicable large employers" (ALEs) to report the cost of their offered health insurance to each employee, under Code Sec. 6056. An "ALE" is defined as those employers who had an average employment level of 50 full-time employees in the immediate preceding calendar year.
Employers and insurance providers alike will use Form 1095 Employer-Provided Health Insurance Offer and Coverage and Form 1094 Transmittal of Coverage Information to report the costs to those covered individuals under the plan, as well as their months of coverage.
The health care law requires applicable employers and insurance providers to submit the 2015 Form 1095 to individuals by Feb. 1, 2016, the same timing as their W-2 forms. The respective transmittal submitted to the IRS, Form 1094, will be due at the same time as employers W-3, typically Feb. 28, 2016.