The Affordable Care Act (ACA), signed into law on March 23, 2010, is meant to provide affordable, quality health care for all Americans and reduce the growth in health care spending.
Use this information to understand how the ACA affects you:
The ACA makes three important changes to the health care system:
- Everyone can get coverage. All Americans can join any health plan without getting denied for pre-existing health issues.
- Everyone must get coverage. All Americans (with few exceptions) must have health insurance or pay a tax. As long as you stay on your Intuit medical plan, you’re covered.
- No more limits. Specifically, there are no annual or lifetime limits on essential health benefits.
The ACA imposes requirements on employers that affect Intuit in three key ways:
- Our plans are more heavily regulated. We now have many more rules to monitor. Unfortunately, this means that more resources are being directed toward compliance rather than toward you, our employees.
- We have new costs. Direct taxes on large employers, as well as indirect taxes on insurance companies and medical equipment providers, mean higher overall costs for our plans.
- The health care landscape will keep changing. Since the ACA was approved, new companies have emerged to help you interact with the health care system in a better way. We're monitoring them closely, looking for opportunities to provide you with more valuable benefits.
The health insurance exchanges, or marketplaces, are one-stop shops for people who can’t get affordable coverage. You’re welcome to shop in the marketplace. But employees have affordable coverage available through Intuit (with Intuit paying 90–95 percent of the cost of your coverage) so you won’t find a better deal through the marketplace.
Dependents whom you choose not to cover, or other family members, may be covered under the health care marketplace. Visit www.healthcare.gov for more information.
Much like Form W-2 and Form 1099, which include information about the income you received, the 1095 provides information that you may need when you file your individual income tax return. The 1095 is a required document under the health care reform law that you can use to show the government that you’ve met your obligation to have health insurance.
Our national health care law requires every American to have health insurance—and just like you have paperwork to prove you have auto insurance, the 1095 is a way to prove you have health insurance.
It’s a tax document, similar to your W-2, that gives the IRS information about your health insurance. It helps the government verify that your coverage meets the requirements under the Affordable Care Act (ACA).
The 1095 serves as proof that you’ve met your obligation to have health insurance. If the government requests proof that you have health insurance and you're not able to supply this form, you may have to pay a fine to the IRS (2% of your yearly household income or $695 per person for the year, whichever is higher).
The 1095 lists information about you, our company and your health insurance. It has three parts:
- Part 1 has your personal information (name, address and Social Security number) as well as our company information, including our Employer Identification Number (77-0034661).
- Part 2 includes information about your medical plan—specifically, you will see a 1A code, which means that the Intuit medical plans meet government requirements for the minimum coverage a company our size must provide. Read your W-2 to find the total costs of your specific coverage.
- Part 3 lists “Covered Individuals”—the names, dates of birth and Social Security numbers for those covered under our health insurance. This may include you, your spouse/domestic partner, children or other dependents.
It also lists the “Months of Coverage” that each person was covered by our health insurance. Say, for example, you were covered for all of 2016 but got married in August and added your spouse. Your “Months of Coverage” will be listed as all 12 months, but your spouse’s will be listed as August through December. Note: The "plan start month" on your form will be listed as "08." This represents the start of our plan year (August). It does not indicate the month that your or your family member's coverage started.
You’ll receive your 1095 Form in the mail at home. It will be marked as a tax document. When you get it, here are four important things to do:
- Verify your personal information in Part 1.
- Verify your family members’ information in Part 3—the names, dates of birth, Social Security numbers and “Months of Coverage” all of you had our health insurance in 2016. If you and your family got health insurance from another company, Part 3 should be blank.
- Report any errors to HR Connect. If you're covered under Kaiser, you'll need to contact them directly to report any errors.
- Keep it! Just like your W-2, you’ll need to save your 1095 Form with all of your tax records. You do not need to enter any data from your 1095 on your 2016 tax return. It is for documentation purposes only.
If you don’t receive your 1095 Form by the end of February—don’t panic! With millions of these forms going out at the same time, yours could be delayed a bit. However, contact HRConnect. They’ll help you confirm that the form is already on its way, or make sure it gets sent to you immediately.
The 1095 Form comes in three different versions—A, B and C. Since all Americans must have coverage, all Americans will receive at least one version of the 1095 Form.
The 1095-A gets sent to Americans who got their health insurance through one of the insurance marketplaces or exchanges.
The 1095-B goes to two groups:
- Americans who work at a company that offers a fully insured health insurance plan (one where the claims are paid by an insurance company) and has 50 or more full-time employees. This applies to the Kaiser HMO and HMO Blue plans. If you’re enrolled in one of these plans, you’ll receive a 1095-B Form.
- Americans who work at a company that offers health insurance and has fewer than 50 employees.
The 1095-B will arrive in the mail at home around the same time as your 1095-C. It will be in an envelope from Kaiser or BlueCross BlueShield and will be marked as a tax document. It’s a companion document that contains similar information about you, our company, our insurance carrier and your health insurance.
When you receive it, keep it and check it for accuracy just like with your 1095-C. Report any errors to Kaiser or BlueCross BlueShield.
The 1095-C goes to Americans who work at a company that offers a self-insured health insurance plan (one where the claims are paid by the company, not an insurer) and has 50 or more employees. Intuit meets these standards, so you will receive one—even if you didn’t get your health insurance through Intuit.
However, your spouse or another family member/dependent may get a 1095-C as well, and/or the A or B version, depending on where they work and where they got their health insurance in 2016. For recordkeeping purposes, save ALL 1095 Forms that you and your family members receive.
If you have questions, you can get help from a private tax adviser or the IRS at irs.gov.
Here are additional IRS resources for you:
- About the 1095-C
- About the 1095-B
- About your tax obligations under the Affordable Care Act (ACA)
- TurboTax Affordable Care Act Update
If you find errors on your 1095-C Form or if you don’t receive the form by the end of February, contact HRConnect. If you find errors on your 1095-B Form, contact your health plan carrier directly.
The IRS has issued an alert to taxpayers regarding an email scam. The scam involves fraudulent forms related to the Affordable Care Act (ACA). As part of the scam, fake CP2000 forms and requests for payment have been sent electronically to numerous individuals across the country.
CP2000, a tax notice related to the Affordable Care Act, is commonly sent to taxpayers through the U.S. Postal Service. The legitimate form is never sent by email. In fact, the IRS does not initiate contact with taxpayers by email.
If you receive a scam email, you should forward it to [email protected] and then delete it from your email.
You can also receive IRS scams by phone or through demanding letters. Go to Reporting Phishing and Online Scams for more information.