Compliance: Form 6056, Minimum Essential Coverage Reporting

Compliance Update: Minimum Essential Coverage and Employer Mandate IRS Reporting – IRS Code Sections 6055 and 6056

To make sure people have Minimum Essential Coverage (MEC), the Internal Revenue Service (IRS) needs reports to be sent by those groups with more than 50 employees who offer MEC. This is called Minimum Essential Coverage Reporting, or IRS Code Section 6055 Reporting. This applies to fully-insured a well as self-funded (“Administrative Services Only” or ASO).

 

To check if employers are offering insurance that gives minimum value and is affordable to their full-time workers, the IRS needs reports to be sent by “applicable large employers” – those with 50 or more full-time workers. This is called Employer Mandate Reporting, or IRS Code Section 6056 Reporting, and applies to fully-insured and self-funded (ASO) employers with 50 or more full-time workers.

The first reports are due no later than March 31, 2016 for the 2015 coverage year (February 28if using a paper report) and will be due every year. Statements also have to be sent to workers by January 31, 2016 (like W-2s) who have their information reported, and by January 31 every year going forward.  BBD,Inc. will publish the actual form templates and work with our groups individually as soon as the final regulations and forms are issued.