Line 16 on the 1095-C form is used to report on an individual’s eligibility for health insurance coverage and his or her coverage status for the given month.


Line 16 addresses the following:

  • Whether the individual was employed, and whether that employment was full-time or not.
  • Whether the employee was enrolled in health insurance coverage.
  • Whether the employer was eligible for any form of relief because of contributions to a union health plan or because the employee was in a limited non-assessment period.  The most common limited non-assessment period is a new hire waiting period.
  • Whether or not the offered coverage was affordable, and which IRS safe harbor was used to determine affordability.

 

Line 16 Codes

A Line 16 response is reported for each month of the year, and may contain one of the following codes:


2A – Not Employed

This response indicates that the individual was not employed during the reported month.


2B – Employed but Not Full Time for the Entire Month

This response indicates that the individual was employed during the month but not on a full-time basis; therefore, they were not eligible for health insurance benefits through their employer for the entire month.


2C - Enrolled

This response indicates the individual was employed during the reported month and covered under a health insurance plan.


2D – Waiting Period

This response indicates the employee was in a measurement or waiting period, prior to becoming eligible for health insurance coverage. This is sometimes referred to as a limited non-assessment period.


2E – Union Sponsored Plan

This response indicates the employee was covered under a multi-employer plan, such as a Union Sponsored Plan, for which the employer paid a fee based on a collective bargaining agreement.


2F – Waived Coverage

This response indicates the employee waived coverage for the reported month, and the employer used Form W-2 Safe Harbor to determine affordability.


2G – Waived Coverage

This response indicates the employee waived coverage for the reported month, and the employer used Federal Poverty Line Safe Harbor to determine affordability.


2H – Waived Coverage

This response indicates the employee waived coverage for the reported month, and the employer used Rate of Pay Safe Harbor to determine affordability.



See Also: Understanding Your Line 14 Codes