Details of Public Law 118-168, Section 3 , Employer Reporting Improvement Act

Under the Patient Protection and Affordable Care Act (also called the Affordable Care Act, or ACA, Public Law 111-148), individuals, including their dependents, must be covered by a health plan that provides at least minimum essential coverage (commonly referred to as the “individual mandate”) or be subject to a tax (also referred to as the individual shared responsibility (ISR) penalty) for failure to maintain the coverage.

An individual who has the minimum essential coverage will receive a copy of Form 1095-B – Health Coverage from government-sponsored programs, eligible employer-sponsored plans, individual market plans, and other coverage the Department of Health and Human Services designates. An employer with 50 or more employees (also known as an applicable large employer (ALE)) who offered enrollment in health care coverage will provide a copy of Form 1095-C – Employer Provided Health Insurance Offer and Coverage to their employees. Both forms are required to be filed with the IRS.

This provision allows employers or other health care plans or programs to provide an electronic copy of Form 1095-B and Form 1095-C to those individuals or employees who consent to receive copies electronically at any prior time during the calendar year. This provision also allows the individual or employee to revoke that consent in writing.

California has standalone sections (RTC sections 61000-61050) related to the ISR penalty which applies for California purposes. Under RTC sections 61005 (d) and (g), a return that satisfies IRC section 6055 as in effect on December 15, 2017, meets the California reporting requirements. As a result, electronic notification requirements as added under this provision would not be applicable for California purposes.

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