A business is responsible for filing IRS Form 1095-B only if two conditions apply: It offers health coverage to its employees, and it is “self-insured.” This means that the company itself pays its employees’ medical bills, rather than an insurance company. A company that doesn’t meet both conditions won’t have to deal with Form 1095-B. Its employees might still receive a 1095-B, but from their insurer, not the employer per a recent article in Turbo Tax/Tax Tips. READ MORE
Form 1095-B was created to fulfill the requirements of the Affordable Care Act, also known as Obamacare. That law requires Americans to have basic level of health insurance in place, referred to as minimum essential coverage. Those who don’t have such insurance may be required to pay a penalty.
Under federal regulations, it is the responsibility of insurance “providers” to send out 1095-B forms.
But there’s a vitally important distinction between “sponsors” of health coverage and “providers.” A sponsor is whoever arranges the health coverage. When people get health coverage through a job, the employer is the sponsor. A provider, on the other hand, is a company or organization that actually pays the bills. Often, that’s an insurance company, in which case the insurer must send out the 1095-B form. A self-insured employer is both the sponsor and the provider; in that case, the employer would send out the 1095-B.