What is the Purpose of Form 1095-B?
Form 1095-B acts as proof that you had health insurance. Think of it like a receipt from your health insurance company. It details the months of the year you had coverage. This form isn’t typically used to directly file your taxes, but it confirms that you fulfilled the individual mandate for health insurance under the Affordable Care Act (ACA). Though the individual mandate penalty is no longer in effect at the federal level, some states still require you to have health coverage, and may use this form to confirm that.
Who Sends and Receives Form 1095-B?
Typically, the following entities send out Form 1095-B:
- Health Insurance Companies: If you have a health insurance plan through a private insurer (like Blue Cross or Aetna), they are responsible for sending you this form.
- Government Agencies: Government-sponsored health programs, like Medicaid or Medicare, also issue this form to individuals they cover.
- Employers: If your employer offers a self-insured health plan, they’ll be the ones sending you a Form 1095-B. This is important to note since many employers send Form 1095-C to show what coverage options are available, but they aren’t always the ones issuing the B form.
You will receive Form 1095-B if you (or a family member) are covered by any of the above plans. If you’re not sure if you should expect one, ask your insurer or human resources department.
What Information is on Form 1095-B?
Form 1095-B doesn’t have to be scary. Let’s break down what you’ll see:
- Your Information: This includes your name, address, and Social Security number (or other taxpayer identification number).
- Insurer Information: The name and address of the insurance provider sending you the form.
- Coverage Information: This part shows the names of each individual covered by the health plan and for which months they had coverage. It’s the most important part because it serves as proof of coverage for the year.
- Employer Information In some cases, the employer’s name and contact information may be listed.
How is Form 1095-B Different from Form 1095-A and 1095-C?
It’s easy to get these “1095” forms mixed up! Here’s a breakdown:
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Form 1095-A: This form is for people who bought health insurance through the Health Insurance Marketplace (aka the exchange). You’ll need this form to reconcile any premium tax credit. If you receive this form and have an additional Form 1095-B, it is likely that you have two insurance plans.
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Form 1095-B: This is the form we’re discussing, which comes from your health insurance provider.
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Form 1095-C: This form is provided by large employers to show employees what healthcare options they had available. It provides an overview of the coverage the employer offered, not necessarily your participation in the plan. If your employer provides a self-insured plan, however, they may also be responsible for sending out a Form 1095-B as previously mentioned.
The key difference is the source and use of each form.
How Do I Use Form 1095-B?
For most taxpayers, Form 1095-B is mainly for informational purposes. You generally don’t need it to file your federal tax return, but you should keep it with your tax documents. Here’s why:
- Proof of Coverage: Keep it as proof if you ever need to confirm that you had health coverage for a specific time period.
- State Tax Purposes: Certain states might require you to report if you had health insurance and Form 1095-B might be useful in this process.
- Accuracy Check: Review it carefully to make sure the information is correct. If something looks wrong, contact your insurance provider to fix it. You want to make sure your coverage was reported accurately.
What If I Didn’t Receive a Form 1095-B?
If you had health insurance and didn’t get a Form 1095-B by the beginning of March of the following year, take these steps:
- Contact Your Insurance Provider: Call or email them directly and request a copy.
- Check Online: Many insurers have online portals where you can download your tax documents.
- Keep Records: Keep other documentation proving you had health coverage (like insurance cards, payment statements, etc.). This way, if you are ever audited, you have all the documentation needed.
Common Misconceptions about Form 1095-B
- It’s for filing taxes: Most people don’t directly use it to fill out their federal return. Keep the form for reference and as a proof of insurance.
- Everyone Gets One: You only get a Form 1095-B if you had coverage through an insurer, government program, or a self-insured employer plan. If you have an employer-sponsored plan or health insurance from the marketplace, you may have to seek other tax forms.
Final Thoughts on Form 1095-B
While Form 1095-B may seem like just another piece of tax paperwork, it’s a crucial record of your health insurance coverage. Keep a copy with your tax documents, just in case you need it. And most importantly, don’t panic if you do not receive one. Contact your insurance company or HR department and they will be able to help you. Understanding these kinds of details helps you stay on top of your taxes and healthcare matters!