What Is Form 1095-B?

Any employer worth their salt knows that offering minimum essential coverage (MEC) under the Affordable Care Act (ACA), is part of their duty as an employer. And the IRS expects the coverage to be reported using ACA forms. But which ACA form should you file? What is Form 1095-B? And 1095-C?

In this blog, we will discuss everything about the ACA Form 1095-B that every filer should know.

What Is Form 1095-B?

To know what is Form 1095-B, you first need to understand minimum essential coverage (MEC). MEC is a type of health insurance coverage that meets the Affordable Care Act (ACA) requirements. Which means the health coverage provided by the employer meets the basic level of coverage that needs to be provided under the law. Having MEC is important because it can directly affect an individual’s eligibility for the premium tax credit (PTC).

Form 1095-B reports to the IRS that an individual is covered under the minimum essential coverage (MEC) during the year. It is basically proof that the individual had health insurance for the year. It is filed by health insurance issuers and government agencies. Even smaller self-insured employers are required to report MEC coverage using this form.

For example, any person who provides minimum essential healthcare coverage to an individual must file an information return reporting the individual’s coverage.

Who Must File Form 1095-B?

The general rule for who must file Form 1095-B is that anyone who provides MEC to individuals during a year must file the form and report the coverage details to the IRS.

• Health Insurance Issuers/Carriers: Health insurance issuers or carriers need to file Form 1095-B for most insured coverage, like individual health insurance policies, employer-sponsored insured coverage, and coverage purchased through Small Business Health Options Program (SHOP).

• Government Agencies: Government agencies such as Medicaid, CHIP, Medicare Part A, Basic Health Program sponsors, as well as federal programs like TRICARE and VA, issue Form 1095-B to covered individuals.

• Self-Insured Small Employers (non-ALE): Self-insured small employers with fewer than 50 full-time employees or equivalents also need to file Form 1095-B to report health coverage for their covered employees and dependents.

Exclusions for ALEs:

Applicable Large Employees or ALEs with 50+ full time employees or equivalents do not use Form 1095-B, instead they report health coverage on 1095-C. They may use Form 1095-B only to report MEC for non-employees who are covered.

Types of Information Reported on Form 1095-B

Understanding the 1095-B filing requirements is essential for ensuring compliance with ACA health coverage mandates. Here is the essential information required as per Form 1095-B instructions 2025.

Four Parts of 1095-B

Form 1095-B has four distinct parts. Each part corresponds to specific information that the IRS requires as part of the ACA reporting requirements.

• Part I identifies the policyholder for the insurance policy. For an employer-sponsored plan, this would be the name of the employee.
• Part II identifies the employer, if the insurance is employee-sponsored.
• Part III identifies the insurance company providing the coverage.
• Part IV lists the people covered under the policyholder’s policy, by year or by month.

Part I- Responsible Individual

This part covers the name, SSN/TIN, and address of the recipient or individual. It also reports what type or kind of health coverage is being provided using specific codes. For example, Code B is used for employer-sponsored coverage while Code C is for a government-sponsored program.

Part II- Information About Certain Employer-Sponsored Coverage (Optional)

Part II of 1095-C is an optional section that reports the details of the coverage if provided by an employer-sponsored health insurance. It includes the employer’s name, address, and EIN.

Part III- Issuer or Other Coverage Provider

This section reports details on the entity providing the health insurance. It includes details like name, EIN, address, and contact information.

Part IV- Covered Individuals

Part IV covers all the individuals who are covered under the health coverage. It reports their name, SSN or other TIN (if this is not available, DOB will do). This section also includes checkboxes for reporting the months that the MEC covered.

For example, if all 12 months were covered, Part IV, Checkbox D, has to be marked. If the coverage was only for a few months, mark only the covered months in Checkbox E.

Tip: If an SSN is missing and still not provided even after following the ACA TIN solicitation procedure, you can use the Date of Birth (DOB).

When You Need to File 1095-B

• If you provide minimum essential coverage to an individual during a calendar year
• Filers will use Form 1094-B (transmittal) to submit Form 1095-B (returns).
• Employers (including governmental employers) subject to the shared responsibility provisions sponsoring self-insured group health plans generally will report information about the coverage in Part III of Form 1095-C instead of on Form 1095-B.

1095-B Filing Deadlines For 2025 TY

(To be filed in 2026)

Forms must be transmitted to the IRS before the deadline. The due dates for Form 1095-B:

• Recipient copy > March 2, 2026 (Original Due Date: Feb 28 is a weekend)
• IRS Paper Filing (only for less than 10 filings) > March 2, 2026 (Original Due Date: Feb 28 is a weekend)
• IRS eFile > March 31, 2026

If the due date falls on a weekend or holiday, it will be due the next business day.

Requesting an Extension

If you need more time to file 1095-B, you can request an extension by filing Form 8809 on or before the original deadline. This will give you an automatic 30-day extension to file 1095-B.

Common 1095-B Filing Errors (and How to Fix Them)

How to eFile 1095-B for 2025 TY?

Accurate health coverage reporting on 1095-B starts with using the correct platform. By using Tax1099 to file Form 1095-B, you can automate the e-filing process from data collection to form submission.

Collect Coverage Data

Form 1095-B filing starts with collecting data (names, SSNs, coverage months, etc.) from the individual and covered dependents. You can make this process simpler and faster by using Tax1099. We offer support for over 12+ no-code integrations with popular accounting software. You can also import Excel and CSV files directly onto the platform.

Solicit SSNs Properly

SSNs or TINs are an important part of 1095-B filing requirements. You can collect this data by following IRS’s initial and annual solicitation requirements for SSNs and retaining proof of your requests. Or better yet, use our eSolicitation feature, which allows you to electronically request and collect SSNs, TINs, and other recipient information directly from the source.

Verify Coverage Months and Prepare the Form

Verify the data that you collected, especially the coverage months. You can do that by using our validation check to check the accuracy of the data provided. We also provide a built-in Action Tracking feature which makes it easy to monitor the progress of your filing in real-time after submission, with status updates and notifications.

Furnish Recipient Statement

Sending copies of 1095-B to recipients is a requirement that you cannot miss out on. And Tax1099 simplifies the process of furnishing recipient copies through its secure eDelivery portal. We manage recipient permissions for electronic delivery, track consent, and ensure that the recipients receive their forms in compliance with IRS rules.

File with the IRS

E-filing is mandatory if you are filing for more than ten (10) 1095-B forms. Once all the data is prepared and verified, you can file with the IRS directly through Tax1099’s e-file system.

Retain Records

Submission is not the end of the line when it comes to 1095-B filing. You still need to keep a record of your forms, data, and transmittals for up to four years in the event of an audit. This can be done using Tax1099’s storage feature that stores your tax data for up to 4 years.

Tip:If you are filing 1000+ forms, you can use bulk import (CSV/Excel/API) in Tax1099 to make 1095-B preparation, validation, and corrections easier, faster, and more seamless.

Form 1095-B Used in Real-Life Scenarios

• If a small employer offers a self-insured health plan to its employees, the employer is responsible for issuing Form 1095-B to every employee and their dependents who were covered under the plan.
• If an individual is covered under Medicaid, the state Medicaid agency becomes the responsible party for filing Form 1095-B and issuing it to the beneficiaries.
• If an individual purchases health coverage through the Marketplace, the individual will not receive Form 1095-B. Instead, they will receive a different form, 1095-A, which was made for reporting marketplace health coverage purchases.
• If you are an ALE or an Applicable Large Employer with 60 FTEs, you’ll need to use 1095-C (Part III if self-insured) to report coverage. However, even ALEs can file 1095-B but only for certain non-employees who are covered under a self-insured plan.
• If an employer offers coverage only for a couple of months, they still need to report it on 1095-B. The form should report only the months the coverage was in effect.

FAQs

Q1: Does the payer need to instruct individuals to file 1095-B with their tax return?

Ans: No, individuals do not file 1095-B with their tax return, though some states may require proof of coverage. They are sent a copy from the payer for informational purposes only.

Q2: What happens if the payer misses the 1095-B deadline?

Ans: If the payer misses the 1095-B deadline, they may face penalties depending on how late the filing is made:

• $60 per form if filed within 30 days after the due date
• $130 per form if filed after 30 days but by August 1
• $340 per form if filed after August 1
• $680 per form for intentional disregard of filing requirements

Q3: Is Form 1095-B still required now that the federal individual mandate penalty is $0?

Ans: Yes, even though the federal individual mandate penalty is $0, payers are still required to file 1095-B and provide copies to the recipients for informational purposes.

Q4: What if the payer cannot obtain an SSN?

Ans: If the payer cannot obtain an SSN even after multiple attempts (initial + annual solicitation), they may use the recipient’s Date of Birth (DOB) on Form 1095-B instead.

Q5: Can a payer e-file multiple 1095-B forms at once?

Ans: Yes, e-filing is recommended if you are filing multiple 1095-B forms (typically more than 10). It ensures faster submission and reduces the risk of errors.

Q6: Do large employers file 1095-B?

Ans: No, Applicable Large Employers (ALEs) with 50 or more full-time employees (or equivalents) do not file Form 1095-B. Instead, they file Form 1095-C to report coverage offered to their employees.

You can eFile Form 1095-B Online for the year 2025 using Tax1099.

Don’t wait for the deadline eFile Now!