New Alternative Furnishing Method for Forms 1095-B and 1095-C Comes with Complexities

The online notice must be posted by the due date for furnishing the statement (e.g., January 31, plus the automatic 30-day extension). It must remain in that location on the website through October 15 of the year following the calendar year in which the statement relates (or the first business day after October 15 if it falls on a Saturday, Sunday, or legal holiday).

“The employer or provider must provide a clear and conspicuous notice, in a location on its website that is reasonably accessible to all responsible individuals, stating that responsible individuals may receive a copy of their statement upon request,” said Habermeyer. “The notice must include an email address, a physical address to which a request for a statement may be sent, and a telephone number that the responsible individuals may use to contact the reporting entity with any questions. A notice posted on a reporting entity's website must be written in plain, non-technical terms and with letters of a font size large enough, including any visual clues or graphical figures, to call to a viewer's attention that the information pertains to tax statements reporting that individuals had health coverage.”

Aside from ensuring accurate and timely online notification, employers and providers must also be ready to respond promptly to any requests for the forms.

“The ability to only provide recipient statements upon request may seem like a win-win for employers and providers, but with that comes the burden of managing requests for statements,” said Habermeyer. “Employers and providers will need to ensure that any individual who requests a statement receives that statement within 30 days. They will also need to keep records of the individuals who requested a statement, the date of that request, and when it was furnished. Employers
and providers will want to find a solution that makes this process easier and captures affirmative consent for electronic delivery when necessary.”

It is important to be aware that the change does not automatically override state-level mandates that require direct distribution of Forms 1095 under their individual mandate or state health law.

Said Habermeyer, “States with individual mandates still require the furnishing of recipient statements. These states include California, the District of Columbia, Massachusetts, New Jersey, and Rhode Island.”

The new alternative furnishing method may create new complexities for employers and providers; however, with the right tools and resources in place, they can ease the burdens and ensure compliance.

Consider, for example, a complete federal, state, and recipient W-2, 1099, and 1095 filing program like Yearli.com by Greatland. Through Yearli.com, employers and providers can choose whether to use print and mail or electronic delivery.