Important Changes to ACA Form 1095 Reporting

Hey, Compliance Warriors and Bosses!

On December 23, 2024, President Biden signed two new laws that impact how applicable large employers report their health coverage offerings via Form 1095. These changes aim to enhance clarity and accuracy in reporting, ensuring that employees are well informed about their healthcare options.

Here are the important changes and what they mean for your business:

• If you have 50 or more full-time equivalent employees, you are classified as an ALE. This means you are required to file Form 1095 to report health insurance coverage offered to your employees.
• The new laws introduce more detailed requirements for reporting health coverage. This includes providing specific information about the type of coverage offered and any changes that may affect employees’ eligibility.
• Employers must now ensure that employees receive timely notifications regarding their coverage. This is to help them understand their options and any actions they need to take.

These changes are significant for several reasons:

• Non-compliance with these new reporting requirements can lead to fines and legal issues. It’s vital to understand your responsibilities as an employer.
• Keeping employees informed about their healthcare options not only helps them make better decisions but also builds trust in your organization.
• By updating your reporting practices, you can mitigate risks associated with incorrect filings and potential penalties.

To ensure your organization complies with the new Form 1095 reporting requirements, consider the following action items:

• Review your employee data to confirm the number of full-time equivalents.
• Update your reporting process to include new details required by the recent laws.
• Implement a system for notifying employees about their health coverage options promptly.
• Consult with a legal or compliance expert to ensure your understanding of the new requirements is accurate.

Be Audit-Secure™!

Lisa Smith, SPHR, SCP