info from CIGNA’s Informed on Reform

The Internal Revenue Service (IRS) announced extended deadlines for 2015 Minimum Essential Coverage and Large Employer Shared Responsibility reporting required to be completed in early 2016.

The IRS is prepared to accept reports beginning in January 2016. Employers and insurers are encouraged to provide the forms to individuals and file the reports as soon as possible.

The IRS indicated that no additional extensions will be granted. Employers and insurers that do not meet these extended due dates may be subject to penalties.

For 2015 only, individuals who file their federal income tax returns before receiving their 1095-B and 1095-C forms will not be required to amend their income tax returns once they receive their forms. They should keep their forms, once received, with their tax records.

Minimum Essential Coverage (Section 6055) and Large Employer (Section 6056) reporting are required by the ACA to help the IRS administer compliance with the “individual mandate” and “employer mandate,” respectively. Reporting is completed on information from the previous calendar year.

Large employers are responsible for completing Forms 1094-C and 1095-C for Large Employer reporting on the group health coverage they offered full-time employees and dependents. If these employers self-fund their medical plans, they should also use the C forms for reporting MEC on individuals covered under their self-funded plans.

Employers with fewer than 50 full-time and/or full-time equivalent employees that self-fund their medical plans must only report the MEC on individuals covered under their self-funded plans using the B forms.

Insurers are responsible for completing Forms 1094-B and 1095-B for MEC reporting on individuals covered under insured medical plans.