Why isn’t severance coverage reported on employees’ 1095-C forms?
The IRS does not require companies to report an offer of coverage for non-employees. Offers of insurance beyond the termination date, such as provided through a severance package or retirement, should be reported by the insurance company. Therefore, the 1095-C we create for such employees only reports an offer of coverage through their term date.
Note: If the employee was covered under a self-funded plan, the covered months beyond their termination will be checked under the Covered Individuals section of their forms. For fully-insured plans, this information will be provided on the 1095-B sent by the insurance company.
Article Modified on: Thu, Jan 19, 2017 at 1:20 PM
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