Do You Know Your Responsibilities for 1099-HC?
By Kyle Pardo
Director, Employer's Resource Group
All residents of Massachusetts age 18 and older must have creditable
health insurance coverage unless granted a waiver by the state.
Verification of coverage is distributed to individuals annually on a
1099-HC form. The state enforces compliance by requiring residents to
report the 1099-HC information on state income tax forms. It is
important for HR professionals to understand their role in preparing
these forms and also for answering employee questions.
Who prepares the 1099-HC?
Insurers in the state of Massachusetts have agreed to take on
the responsibility of preparing 1099-HC forms for residents covered
under their plan during 2008. Companies with self-insured plans or
plans written out of state must assume this responsibility. In
addition, insurers or employers with self-funded or out-of-state plans
must send the 1099-HC information in electronic format to the Department
of Revenue. The 1099-HC form and Electronic Filing Instructions
for the DOR are available on the AIM Online Resource Center under the letter H for
Health Care Reform.
When must the 1099-HC forms be distributed?
The 1099-HC forms are used by individuals when completing Schedule HC of
their state tax returns, therefore, the 1099-HC forms must be mailed to
residents by January 31, 2009.
Who will receive a 1099-HC form?
Massachusetts residents age 18 or older who are primary health insurance
subscribers will receive a 1099-HC form. Forms need not be
distributed to individuals under age 18 who are not subject to the
individual mandate. Individuals enrolled in Medicare or any other state
program, such as Commonwealth Choice or MassHealth, will not receive a
1099-HC form. These individuals will check a specific box on the
Schedule HC form included in their Massachusetts tax return. Employers
preparing the 1099-HCs are reminded that these forms must be prepared
for every employee who had coverage in the employer's group health
insurance plan(s) at any time during 2008, including current and
former employees, including COBRA participants.
What information will be included on the
1099-HC?
The 1099-HC includes the insured’s name, address, date of birth,
policy number, subscriber number, and dates of coverage. The form
also includes the name, date of birth, subscriber number, and dates of
birth of dependents covered under the plan. If an individual was
covered under more than one health plan during the year, he/she will
receive more than one 1099-HC.
AIM has followed the health care reform law since the beginning and
has prepared 1099-HC forms for Massachusetts companies. Contact
Karen Choi at 800-470-6277 or info@aimnet.org to find out how AIM
can help you with virtually any Health Care reform compliance issue.
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