Affordable Care Act (ACA)
The Affordable Care Act (ACA) is the major healthcare reform enacted on March 23, 2010. ACA requires large employers like Louisiana State University to offer health insurance coverage to substantially all (at least 95%) of their full-time employees, which for this purpose is defined as an employee averaging 30 or more hours of work per week. Additionally, the ACA requires the University to complete complex annual IRS reporting. These requirements make it critically important for the University to be able to track hours for all employees.
The ACA requires employers to report the value of health insurance coverage on employees' W-2 forms. The purpose of the value of health coverage, as stated by the IRS, is to provide employees useful and comparable consumer information on the cost of health care coverage. This amount is not taxable and does not include the value of dental or life coverage.
The ACA requires employers to send an annual statement (on paper or electronically) to eligible employees describing the health insurance coverage that was offered to them. The IRS Form 1095-C serves as that statement. LSU makes this 1095-C form available each year.
Form 1095-C Frequently Asked Questions (FAQs)
Individuals will indicate on their Form 1040, 1040A, or 1040EZ if they have complied with the individual shared responsibility mandate.
LSU will send out all 1095-C Forms by January 31st of the year following the applicable tax year. While the information on these forms may assist in preparing your tax return, the Form 1095-C is not required. You can prepare and file your return using other information about your health insurance.
The IRS has stated that you do not have to wait for a Form 1095-C from your employer to file your individual income tax return. Other forms of documentation that would provide proof of your insurance coverage include:
- insurance cards,
- explanation of benefits
- statements from your insurer,
- W-2 or payroll statements reflecting health insurance deductions, records of advance payments of the premium tax credit and other statements indicating that you, or a member of your family, had health care coverage.
You will not need to send the IRS proof of your health coverage. However, you should keep any documentation with your other tax records. This includes records of your family’s employer-provided coverage, premiums paid, and type of coverage.
The IRS has several helpful publications:
- Q&As: www.irs.gov/Affordable-Care-Act/Individuals-and-Families
- Q&As: www.irs.gov/Affordable-Care-Act/Questions-and-Answers-about-Health-Care-Information-Forms-for-Individuals
- Form 1040 Instructions: www.irs.gov/instructions/i1040gi/
On this website the federal government offers a comparison tool, answers to frequently asked questions, and the opportunity to enroll in insurance though the exchanges.
The Kaiser Family Foundation site provides a calculator that estimates how a Marketplace plan could impact your family.