The IRS has recently released the draft versions of the 2016 1094B, 1095B, 1094C and 1095C forms.
- Form 1094-B: Transmittal of Health Coverage Information Returns
- Form 1095-B: Health Coverage
- Form 1094-C: Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Return
- Form 1095-C: Employer Provided Health Insurance Offer and Coverage
These are currently draft reports that aren't to be used for filing. They're almost identical to the 2015 forms – with a few tweaks.
- On the 1094-C, Line 22 (B) has been changed from “Qualifying Offer Transitional Relief” to “Reserved.”
- On the 1095-C, “Plan Start Month” will continue to be an option on the 2016 reporting.
Most importantly, two new Series 1 Codes to be used on Line 14 have been added:
- 1J: Minimum essential coverage providing minimum value offered to the employee, minimum essential coverage conditionally offered to spouse; and minimum essential coverage NOT offered to dependent(s).
- 1K: Minimum essential coverage providing minimum value offered to the employee; minimum essential coverage conditionally offered to spouse; and minimum essential coverage offered to dependent(s).
At this point, the IRS hasn't defined what a “conditional” offer of coverage is; additional clarification will come with future instructions. For now, employers with a spousal “carve-out” or who impose any sort of conditions on spouses in order for them to be covered under the plan should be prepared to report the months where conditional spousal coverage was offered.
At this time, we're still awaiting the draft instructions for the 2016 forms. We anticipate that those will provide more information about the additional items that are being added.
What to do next?
Employers need to go back and make sure they're able to account for any conditional offers made to each employee’s spouse. Also, employers should continue making sure that they have the proper systems in place to easily access the information required of them to complete the reports applicable to them. Small, self-funded plans will need to fill out Forms 1094B and 1095B. Applicable large employers with a self-funded plan may also choose to fill out Forms 1094B and 1095B for non-employees, such as retirees or COBRA beneficiaries instead of completing Forms 1094C and 1095C for those individuals. Applicable large employers sponsoring self-funded plans will need to complete Forms 1094C and 1095C, including Part III of Form 1095C. For fully-insured plans, employers will need to make sure they have the data to complete Forms 1094C and 1095C (minus Part III of Form 1095C).
We'll keep everyone up-to-date as draft instructions are released.