Electronic 1095-C Information and Instructions
Under the Affordable Care Act ("ACA" also known as Health Care Reform), CMU is required to file annual reports with the Internal Revenue Service (IRS) and provide a statement to full-time employees with information about the health coverage that was offered, if any, to the employee and their dependents, using IRS Form 1095-C. Additionally, regular faculty eligible for, and enrolled in, health coverage will receive Form 1095-B from MESSA.
1095-C instructions for form recipient
You are receiving this Form 1095-C because your employer is an Applicable Large Employer subject to the employer shared responsibility provision in the Affordable Care Act. This Form 1095-C includes information about the health insurance coverage offered to you by your employer. Form 1095-C, Part II, includes information about the coverage, if any, your employer offered to you and your spouse and dependent(s). If you purchased health insurance coverage through the Health Insurance Marketplace and wish to claim the premium tax credit, this information will assist you in determining whether you are eligible. For more information about the premium tax credit, see Pub. 974, Premium Tax Credit (PTC). You may receive multiple Forms 1095-C if you had multiple employers during the year that were Applicable Large Employers (for example, you left employment with one Applicable Large Employer and began a new position of employment with another Applicable Large Employer). In that situation, each Form 1095-C would have information only about the health insurance coverage offered to you by the employer identified on the form. If your employer is not an Applicable Large Employer, it is not required to furnish you a Form 1095-C providing information about the health coverage it offered.
In addition, if you, or any other individual who is offered health coverage because of their relationship to you (referred to here as family members), enrolled in your employer's health plan and that plan is a type of plan referred to as a "self-insured" plan, Form 1095-C, Part III provides information about you and your family members who had certain health coverage (referred to as "minimum essential coverage") for some or all months during the year. if you or your family members are eligible for certain types of minimum essential coverage, you may not be eligible for the premium tax credit."
If your employer-provided you or a family member health coverage through an insured health plan or in another manner, the issuer of the insurance or the sponsor of the plan providing the coverage will furnish you information about the coverage separately on Form 1095-B, Health Coverage. Similarly, if you or a family member obtained minimum essential coverage from another source, such as a government-sponsored program, an individual market plan, or miscellaneous coverage designated by the Department of Health and Human Services, the provider of that coverage will furnish you information about that coverage on Form 1095-B. If you or a family member enrolled in a qualified health plan through a Health Insurance Marketplace, the Health Insurance Marketplace will report information about that coverage on Form 1095-A, Health Insurance Marketplace Statement.
Part I. Employee
Lines 1-6. Part I, lines 1–6, reports information about you, the employee.
Line 2. This is your social security number (SSN). For your protection, this form may show only the last four digits of your SSN. However, the employer is required to report your complete SSN to the IRS.
Part I. Applicable Large Employer Member (Employer)
Lines 7–13. Part I, lines 7–13, reports information about your employer.
Line 10. This line includes a telephone number for the person whom you may call if you have questions about the information reported on the form or to report errors in the information on the form and ask that they be corrected.
Part II. Employer Offer of Coverage, Lines 14–16
Line 14. The codes listed below for line 14 describe the coverage that your employer offered to you and your spouse and dependent(s), if any. (If you received an offer of coverage through a multiemployer plan due to your membership in a union, that offer may not be shown on line 14.) The information on line 14 relates to eligibility for coverage subsidized by the premium tax credit for you, your spouse, and dependent(s). For more information about the premium tax credit, see Pub. 974.
1A. Minimum essential coverage providing minimum value offered to you with an employee-required contribution for self-only coverage equal to or less than 9.5% (as adjusted) of the 48 contiguous states single federal poverty line and minimum essential coverage offered to your spouse and dependent(s) (referred to here as a Qualifying Offer). This code may be used to report for specific months for which a Qualifying Offer was made, even if you did not receive a Qualifying Offer for all 12 months of the calendar year. For information on the adjustment of the 9.5%, see IRS.gov.
1B. Minimum essential coverage providing minimum value offered to you and minimum essential coverage NOT offered to your spouse or dependent(s).
1C. Minimum essential coverage providing minimum value offered to you and minimum essential coverage offered to your dependent(s) but NOT your spouse.
1D. Minimum essential coverage providing minimum value offered to you and minimum essential coverage offered to your spouse but NOT your dependent(s).
1E. Minimum essential coverage providing minimum value offered to you and minimum essential coverage offered to your dependent(s) and spouse.
1F. Minimum essential coverage NOT providing minimum value offered to you, or you and your spouse or dependent(s), or you, your spouse, and dependent(s).
1G. You were NOT a full-time employee for any month of the calendar year but were enrolled in self-insured employer-sponsored coverage for one or more months of the calendar year. This code will be entered in the All 12 Months box or in the separate monthly box for all 12 calendar months on line 14.
1H. No offer of coverage (you were NOT offered any health coverage or you were offered coverage that is NOT minimum essential coverage).
1J. Minimum essential coverage providing minimum value offered to you; minimum essential coverage conditionally offered to your spouse; and minimum essential coverage NOT offered to your dependent(s).
1K. Minimum essential coverage providing minimum value offered to you; minimum essential coverage conditionally offered to your spouse; and minimum essential coverage offered to your dependent(s).
Line 15. This line reports the employee-required contribution, which is the monthly cost to you for the lowest-cost self-only minimum essential coverage providing minimum value that your employer offered you. The amount reported on line 15 may not be the amount you paid for coverage if, for example, you chose to enroll in more expensive coverage such as family coverage. Line 15 will show an amount only if code 1B, 1C, 1D, 1E, 1J or 1k is entered on line 14. If you were offered coverage but there is no cost you for the coverage, this line will report a "0.00" for the amount. For more information, including on how your eligibility for other healthcare arrangements might affect the amount reported on line 15, see IRS.gov.
Line 16. This code provides the IRS information to administer the employer-shared responsibility provisions. Other than a code 2C which reflects your enrollment in your employer's coverage, none of this information affects your eligibility for the premium tax credit. For more information about the employer-shared responsibility provisions, see IRS.gov.
Part III. Covered Individuals, Lines 17–22
Part III reports the name, SSN (or TIN for covered individuals other than the employee listed in Part I), and coverage information about each individual (including any full-time employee and non-full-time employee, and any employee's family members) covered under the employer's health plan, if the plan is "self-insured." A date of birth will be entered in column (c) only if an SSN (or TIN for covered individuals other than the employee listed in Part I) is not entered in column (b). Column (d) will be checked if the individual was covered for at least one day in every month of the year. For individuals who were covered for some but not all months, information will be entered in column (e) indicating the months for which these individuals were covered. If there are more than 6 covered individuals, see the additional covered individuals on Part III, Continuation Sheet(s).
Frequently asked questions about Form 1095-C
What is a Form 1095-C?
The Affordable Care Act requires that certain employers provide you with an IRS tax form called Form 1095-C Employer-Provided Health Insurance Offer and Coverage. This form is required to be provided to all full-time employees (working over 30 hours on average) and any person enrolled in CMU's medical plan during the calendar year. Form 1095-C includes information about the medical coverage offered to you by CMU and that information will also be reported to the Internal Revenue Service. Think of this form as your "proof of insurance" for the IRS.
What information is on the 1095-C Form?
There are three parts to the form:
• Part I includes information about you and your employer.
• Part II includes information about the coverage your employer offered to you and your dependent(s).
• Part III includes information about the individuals enrolled in healthcare coverage, including dependents.
Why was Part III of my Form 1095-C left blank?
Part III of the 1095-C is only populated for each month you and your dependents (if any) were enrolled in CMU's self-funded medical coverage, such as BCBSM PPO1, PPO2 or HDHP. Employees enrolled in the fully insured MESSA medical plans, such as Choices 10/20, Choices Saver or ABC HSA, will also receive a 1095-B form from MESSA. The 1095-B form provides details about your actual insurance coverage, including any dependents coverage by your insurance. For questions about your 1095-B form, contact MESSA at 800-336-0013.
Who receives a Form 1095-C?
All benefit-eligible faculty and staff, as well as any employees who were enrolled in health coverage through CMU at any time in the calendar year, will receive a Form 1095-C.
How do I get my 1095-C Form?
The Form 1095-C will be available electronically on or before mid-January. If you do not electronically consent, the Form 1095-C will be mailed to your home address on file by January 31.
I received my Form 1095-C electronically last year. Do I need to consent again?
No. Your paperless consent remains in force unless you change it.
Why didn't I get a Form 1095-C?
If you were not a benefit-eligible employee (e.g. student employees, temporary staff, graduate assistants, Global Campus adjunct faculty, less-than-half-time fixed-term faculty) at any point during the prior calendar year then you should not receive a Form 1095-C. You also may not receive a 1095-C if you were not the primary insured.
Will my covered dependents receive their own Form 1095-C in the event that they file separate tax returns?
Under the final IRS rules, CMU is not required to provide statements to persons other than the employee. The IRS indicates that the employee should provide a copy to any covered dependents if requested for their records.
Do CMU's medical plans provide the required level of coverage for me to avoid tax penalties?
Yes. CMU's health plans meet the minimum essential coverage (MEC) and are considered affordable under ACA so you will meet the individual mandate requirement if you were covered by CMU's medical plan for all 12 months of the prior calendar year.
What if I have questions?
Contact a tax advisor for questions about how the tax form may impact you. You may also visit the IRS website about the 1095-C form.