On July 3, 2018, the IRS released draft versions of the 2018 informational reporting forms that insurers and self-insured employers will use to satisfy their obligations under IRC Section 6055. In addition, on July 11, 2018 the IRS released 2018 draft versions of the forms that large employer plan sponsors and health plans will use to satisfy their obligations under IRC Section 6056. These forms, once finalized, will be filed in early 2019 relating to 2018 information. The IRS is currently accepting comments on the draft forms. A 2018 draft version of Form 1095‐B and draft instructions for these forms have not yet been released.
As a reminder, Forms 1094-B and 1095-B (6055 reporting) are required of insurers and small self-insured employers that provide minimum essential coverage. These reports will help the IRS to administer and enforce the individual mandate. Form 1095-B, the form distributed to the covered employee, will identify the employee, any covered family members, the group health plan and the months in 2018 for which the employee and family members had minimum essential coverage under the employer's plan. Form 1094-B identifies the insurer or small self-insured employer and is used to transmit the corresponding Form 1095-B to the IRS.
Forms 1094-C and 1095-C (6056 reporting) are to be filed by applicable large employers that are subject to the employer mandate (as they will help the IRS administer and enforce the employer mandate). Employers will use Form 1095-C to identify the employer, the employee, whether the employer offered minimum value coverage meeting the affordability standard to the employee and dependents, the cost of the lowest plan option and the months for which the employee enrolled in coverage under the employer's plan. Further, if the plan is self-insured, the employer will use the form to fulfill its Section 6055 reporting obligations by indicating which months the employee and family members had minimum essential coverage under the employer’s plan.
Whereas Form 1095-C reports coverage information at the participant level, Form 1094-C reports employer-level information to the IRS. The applicable large employer will use this form to identify the employer, number of employees, whether the employer is related to other entities under the employer aggregation rules and whether minimum essential coverage was offered.
The 2018 draft forms appear to have only a few minor changes compared to the 2017 forms. Highlights of the changes are as follows:
1094-B – Appears unchanged.
1094-C – Appears unchanged. However, this could change upon the release of the draft instructions.
1095-B – No draft form released at this time.
1095-C – Line 1 in Part I and Column (a) in Part III provide dividers for the entry of the individual’s first name, middle initial and last name. This new layout will likely ensure all Forms 1095-C are completed with an identical name structure, thus leading to more uniformity and fewer TIN issues.
Employers should become familiar with these forms in preparation for filing information returns for the 2018 calendar year. However, these forms are only draft versions, and they shouldn’t be filed with the IRS or relied upon for filing. In addition, despite the repeal of the individual mandate penalty in 2019, large employers will still need to continue to offer affordable, minimum value coverage to all full-time employees and prepare to comply with employer reporting requirements as to 2018 coverage.
2018 Draft Form 1094-C
2018 Draft Form 1094-B
2018 Draft Form 1095-C