Affordable Care Act (ACA) New Requirement: 1095-C

The Affordable Care Act, or Obamacare, requires certain employers to offer health insurance coverage to full-time employees and their dependents.  Those employers must send an annual statement to all employees eligible for coverage describing the insurance available to them. As a result, the Internal Revenue Service (IRS) created Form 1095-C to serve as that statement.

What is the Affordable Care Act (ACA)?
The Patient Protection and Affordable Care Act (PPACA) 2010 HR3590, or Affordable Care Act (ACA) for short, is the new health care reform law in America and is often called by its nickname Obamacare. The ACA is a long, complex piece of legislation that attempts to reform the healthcare system by providing more Americans with Affordable Quality Health Insurance and by curbing the growth in healthcare spending in the U.S.. Reforms include new benefits, rights and protections, rules for Insurance Companies, taxes, tax breaks, funding, spending, the creation of committees, education, new job creation and more.  More information can be found here.


How does ACA impact Gallaudet University?
Employers with at least 50 full-time employees are considered an Applicable Large Employer, or ALE, according to the ACA.  Thus, ALEs must offer full-time employees ACA compliant health care coverage or pay a penalty.  Gallaudet University has always provided health care coverage to all regular-status employees.  However, effective January 1, 2015, the University began providing health care coverage for all temporary employees who 1) are expected to work at least 90 days and 2) work at least 30 hours per week or 130 hour per month. 


What is Form 1095-C?
Gallaudet University is required to report information to the IRS about the health care coverage that is offered to our eligible employees.  Gallaudet University must also distribute Form 1095-C to employees.  The Form 1095-C contains health care coverage information the employees needs to report to the IRS as part of their annual income tax filing.


When will I receive the Form 1095-C?
Employees will see this form by February each year.  The Form helps the IRS administer premium tax credits, if applicable, for any employees who qualified and enrolled for coverage at a Health Insurance Marketplace rather than enrolling in their employer plan. 


What does the Form 1095-C look like?
You can view the Form 1095-C here.  The form will contain your personal information as well Gallaudet's information under Part I.  Under Part II, please note that the employee share of lowest cost monthly premium is not the amount you are currently paying for health insurance (if you have one).  It contains the monthly premium of the lowest-priced self-only health insurance plan offered to you under the Federal Employees Health Benefits Program (FEHB).  The lowest-priced self-only FEHB plan is currently NALC Value Option.   


What do I do when I receive the 1095-C? 
It is important not to discard the Form 1095-C once you receive it.  Although you will not need the 1095-C to file your income taxes, it may be needed for future reference. You can view this video (with captions) to help you understand the purpose of 1095-C: https://www.tangohealth.com/media/1095-C/st.


What if I have more questions?
If you are still have questions regarding the Form 1095-C, please feel free to contact Anthony Balogh or Marylynn Boswell.  Their contact information can be found here