The Affordable Care Act (ACA) introduced new reporting requirements to ensure individuals maintain minimum essential coverage. Two key forms involved in this process are Form 1095-B and Form 1094-B. These forms help both taxpayers and the IRS confirm that coverage requirements were met and determine whether penalties apply.
What Is Form 1095-B?
IRS Form 1095-B is issued by entities that provide health coverage, such as:
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Small Business Health Options Program (SHOP)
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Employer-sponsored health plans
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Government programs like Medicare or Medicaid
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Individual marketplace insurance
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Multi-employer plans
The form verifies that you (and any dependents) had qualifying health coverage during the year. If you did not have adequate coverage, you may have been subject to the Shared Responsibility Payment (the ACA penalty under Obamacare).
What’s on Form 1095-B?
The form is filed by the coverage provider and includes:
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Part I: Responsible Individual (policyholder) details
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Part II: Employer-sponsored coverage information
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Part III: Other issuers or coverage providers
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Part IV: Covered individuals (including dependents), with months of coverage listed
This record ensures taxpayers can verify compliance if the IRS questions their health coverage.
What Is Form 1094-B?
Form 1094-B is the transmittal form that accompanies all 1095-B filings. While each individual receives their own 1095-B, the 1094-B is filed once by the employer or coverage provider as a summary.
For example, if an employer provides coverage for 50 employees:
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Each employee receives a Form 1095-B.
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The employer files a single Form 1094-B to transmit the batch to the IRS.
Why These Forms Matter
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They ensure compliance with ACA minimum coverage standards.
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They provide documentation for both taxpayers and the IRS.
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They help individuals avoid penalties by proving coverage.
Employers and coverage providers should carefully file these forms each year to remain compliant.
Summary
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Form 1095-B verifies that an individual and their dependents had minimum essential health coverage.
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Form 1094-B serves as the transmittal form for all 1095-B filings submitted by a coverage provider.
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Together, these forms help enforce ACA requirements and ensure accurate reporting.
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