The COBRA Blog

Employers: The Individual Mandate Impacts You Too!

Posted by Robert Meyers on Tue, Nov 04, 2014 @ 11:11 AM

individual mandateNow that the Affordable Care Act’s “shared responsibility” provisions are in place, it’s time to get ready for the reporting requirements that go into effect in 2015.

When it comes to the individual mandate, you might be thinking it’s just for individuals and not for employers, but the usual domino effect applies here. The government has to verify the information employees report – and that’s where the ball gets thrown into your court.

The ABC’s of reporting requirements

As an employer, you’re required to report employees covered by Minimal Essential Coverage (MEC) and/or any exemptions. Employer-sponsored coverage, including self-insured plans, COBRA coverage, and retiree coverage, falls under the scope of MEC and has to be reported.

To administer the individual mandate and determine if an employer is liable for a shared responsibility penalty, the IRS has created three new 1095 forms: 

  • FORM 1095-A (Health Insurance Marketplace Statement). This form is sent by the Health Insurance Marketplace to individuals and dependent family members who are enrolled in the marketplace. Form 1095-A provides the necessary information for Form 8962, Premium Tax Credit, which has to be filed with an individual’s tax return to claim a premium tax credit. For more information, see the draft of this form at

Visit regularly to stay up to date on changes to these forms.

Have part-time, low wage workers?

Many large organizations have low-wage workers who may be classified as part-time, but technically meet the threshold for needing healthcare under the employer mandate. If you’re in that situation, you need to be able to prove that you offered affordable healthcare to those workers. When those workers fill out their taxes, many of them could easily forget and claim that healthcare insurance was not available through their employer – especially if offering a healthcare plan to part-time workers is a new practice for your company. If that happens, you’ll have to prove that the workers received adequate communication about, and notification of, the availability of healthcare coverage. And that means extra time and expense for you.

Don’t forget – COBRA coverage qualifies as Minimal Essential Coverage and has to be reported. Need help sorting it out? In addition to COBRA administration, COBRAGuard offers enrollment and eligibility services that include all necessary legal documentation of plan offers and notifications. Contact us to learn more.

Tags: cobra coverage, individual mandate, affordable care act, minimal essential coverage, share responsibility penalty, ACA reporting requirements

describe the imagedescribe the image

Subscribe to the COBRAGuard Blog

Latest Posts

Posts by category

Follow Us