To complete a 1095C form for each of your eligible employees, we need to collect information regarding their Employment History and Health Insurance Coverage History.
Employment History
In order to determine an employee’s eligibility for insurance under the Affordable Care Act, the federal government requires employers to track their employees’ Job Status during each month of the year.
As mentioned, ACA TRACK will handle the monthly reporting, but you will need to provide a baseline and any changes that occur during the year, such as moving from variable hour (part-time) to full-time.
Health Insurance Coverage History
The Health Insurance Coverage history describes the nature of eligibility and coverage type that an employee has throughout the year. Since these may change during the year, often as a result of changes in an employee’s Job Status, companies are required to track these changes for each employee. This is to ensure they are receiving an appropriate offer of health insurance as guaranteed under the Affordable Care Act.
Status Changes
Many of your employees will have consistent Job Status and Coverage over the course of the year. However, it is not uncommon for employees to change these statuses (sometimes multiple times).
For instance, a variable hour (part-time) employee may be promoted to a full-time position. Or an employee may experience a qualifying event, which results in a mid-year change to their health insurance coverage type.
Let’s look at an example: Larry Smith is an employee that was hired full-time on November 2, 2017 and then became variable hour on April 13, 2018. When Larry was hired he was immediately eligible for health insurance as a full-time employee and enrolled in coverage. When Larry switched to variable hour (part-time) he was no longer eligible for coverage and chose to enroll in COBRA effective May 1, 2018:
Since any status change can potentially impact an employee’s eligibility for health insurance under the Affordable Care Act, the federal government requires employers to document their employees’ status for every month of the year.
Fortunately, ACA TRACK makes this process much easier. Rather than tracking each employee’s month-by-month status, you simply record the date(s) of any change(s) that occurred during the year. Once that information is uploaded into the ACA TRACK system, we will assign the proper status to each employee for each month of the year.
Next Step: Understanding the Data Fields