Blue Alert – New Resource Provides Guidance on Reporting Coverage to IRS in 2016

Starting with the 2015 tax year, health coverage reporting will be required, and large underwritten and self-funded groups must be prepared to do this in 2016.

In a previous Blue Alert, we told you about the requirements for us to report on our underwritten group and individual (off-Marketplace) coverage information (IRS Section 6055). We also provided information about how large group employers and self-funded groups should report coverage information about their full-time employees (IRS Section 6056).

We’ve developed a one-page document that you can use when educating your groups that will help them understand the following:

   * Who is responsible for Section 6055 and Section 6056 reporting by market segment?
   * Which IRS form is used to report health plan coverage information?

Important reminder about self-funded groups
We are reminding you that self-funded groups are responsible for reporting member coverage to the IRS in 2016. These groups must remember to report tax identification numbers (most likely Social Security numbers) to the IRS on all members on a contract, including dependents.

We won’t be able to help these groups collect members’ taxpayer identification numbers (most likely Social Security numbers). We’re also unable to provide reports such as D1 reports for 6055 reporting purposes.

However, we’re working on a solution that would allow your groups to retrieve a membership file that would supply member counts. Self-funded groups could use that information to help with their reporting.

What you can do
If you are a sales representative or agent, explain the reporting requirements to your group.

For more information, refer to our frequently asked questions document.

Questions? Contact your Blues sales representative or managing agent.