Issue Brief | Oct 16, 2015

Building on Year One 1095-A Form Success: Marketplaces’ Recommendations for Future Tax Seasons

Elizabeth Osius, Jocelyn Guyer, and Joel Ario, Manatt Health Solutions

Tax year 2014 marked the first year during which all health insurance marketplaces were required to report information about Advance Premium Tax Credits (APTCs) to enrollees through Form 1095-A, which was developed by the Internal Revenue Service (IRS) and used by enrollees to fill out new tax forms.  In order to address potential concerns leading up to the execution of this process, the State Network convened a workgroup of states, led by Manatt Health Solutions, which enabled discussion of implementation challenges and solutions.  Many of the expected challenges associated with this process were addressed in advance, allowing the marketplaces to provide most forms in a timely fashion and develop solutions to challenges as they arose.  This issue brief, prepared by Manatt Health Solutions, builds on the workgroup discussions, as well as follow-up interviews with marketplace officials in several states, to examine practical strategies learned this year to ease implementation of 1095-A forms in the future, and also to assist carriers, government agencies, and employers facing new ACA tax reporting requirements for tax year 2015.