During Affordable Care Act (ACA) reporting season, some employers wonder whether reporting on 1095-C forms is required for retirees receiving employer-provided health coverage.

Internal Revenue Code Section 6055 requires every provider of minimum essential coverage to report coverage information to the Internal Revenue Service (IRS) and to furnish a statement to individuals receiving coverage. This includes all retirees receiving coverage. The information is used by the IRS to administer, and by individuals to show compliance with, the ACA individual shared responsibility provision. The coverage information is usually reported on Form 1095-C, Section III.

The IRS instructions provide specific details on reporting coverage for retirees that worked at least one month during the past year on page 11, and for retirees that have not worked in the past year on page 13. Retirees that did not work in the past year are categorized as non-employees.

Note:

The Tax Cuts and Jobs Act enacted in 2017 keeps the individual mandate in place for 2017 and 2018 before reducing the individual penalty dollar amount to zero in 2019.

Resources:

IRS Questions and Answers on Information Reporting by Health Coverage Providers (Section 6055)
(See Questions 5, 6, and 7)

IRS 2018 Instructions for Forms 1094-C and 1095-C
(See Post-employment (non-COBRA) coverage on page 11, and Coverage of Non-Employee on page 13)

Information Reporting of Minimum Essential Coverage, Internal Revenue Service; Final Rule, Federal Register, March 10, 2014

The Tax Bill And The Individual Mandate: What Happened, And What Does It Mean? Health Affairs

Developed by International Foundation Information Center staff. This does not constitute legal advice. Please consult your plan professionals for legal advice.

Lois Gleason, CEBS
Manager, Reference/Research Services at the International Foundation