Home > Uncategorized > Forms 1095-B (Health Coverage) and 1094-B (Transmittal): To Verify Minimal Essential Coverage Under Obamacare

Forms 1095-B (Health Coverage) and 1094-B (Transmittal): To Verify Minimal Essential Coverage Under Obamacare

Another new tax form required for entities that provide health coverage for individuals under Obamacare is Form 1095-B.  This form is used to verify that an individual has ‘minimal essential coverage’ under the mandates of the Affordable Care Act (ACA).  This coverage is referred to as the individual responsibility requirement under ACA, which requires either purchasing or receiving health coverage, or face paying a penalty.  Although ACA is a health care directive, the penalty and coverage verification have been left to the IRS as the agency with the ability to both track and collect the penalty using tax returns.

The penalty aspect of ACA was controversial, but this is the way that Obamacare mandates that every individual have coverage.   The penalty is minimal the first year, but increases steadily each year to equal the cost of mid-level health plan in the Marketplace.  This form, submitted by the entity that provides the coverage, will demonstrate that a taxpayer had fulfilled the requirement and would avoid the penalty.  Therefore, anyone who receives a copy of this form should retain it to verify that they have complied with the mandate.

The types of coverage that could be reported on the form include:

  • Small Business Health Options Program
  • Employer sponsored coverage
  • Government-sponsored program
  • Individual market insurance
  • Multi-employer plans

 

The form is actually filed by the entity that provides the coverage, and then the Responsible Individual (Policy Holder) listed in Part I will receive a copy of the form for their records.

Part II is for Employer Sponsored Coverage, and Part III is for other Issuers or Coverage Partners.

Part IV has multiple spaces for Covered Individuals where there may be several family members under the same plan.

There are also boxes that indicate the number of months of coverage for the calendar year.  There is an additional form that must be filled out for employers that provide coverage, the 1095-C, which I will discuss in another article.

Form 1094-B

Form 1094-B is simply the transmittal form that will accompany all 1095-B forms that are filed by one employer or provider of coverage.  For instance, if an employer provides coverage they would send separate 1095-B forms for each employee, but only one 1094-B as the transmittal form.  It is simple to fill out and poses no real challenges for the filer.

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Erich J. Ruth

Erich J. Ruth provides technical support for National Software which is the parent company for 1099FIRE. 1099FIRE develops and markets a comprehensive range of products that enables any size of business or institution to effectively manage and comply with year-end filing requirements. 1099FIRE is an employee-owned company located in Phoenix, Arizona.

If you have any questions or comments about our software, feel free to contact us at any time.

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  1. Robin Smith
    February 17th, 2016 at 12:03 | #1

    Good morning,

    We are looking for a vendor where our clients can use the data extracted from our system and import to a software package. This software package should include the 1095B form print capability and then create the 1094B to be used for the IRS.

    For those clients that have over 250, they need the ability transmit the information to the IRS.

    Does your software meet our needs?

    Thank you,
    Robin Smith
    Byrne Software Technologies, Inc.
    636-534-6117

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  2. February 17th, 2016 at 12:14 | #2

    Yes. Our software can import, print and efile the 1095-B forms with the
    1094-B transmittal summary and/or the 1095-C forms with the 1094-C transmittal
    summary.

    The software can be downloaded here

    https://www.1099fire.com/try_now.htm

    Sample excel import files are here

    https://www.1099fire.com/support/import/index.htm

    Sample print is here

    https://www.1099fire.com/software/1095software.htm

    Call or email anytime. Our main office is 480-460-9311.

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