Regulatory Update: IRS Forms 1095-B No Longer Require Postal Mailing to Recipients
Employer-sponsored health plans that provide minimum essential coverage (MEC) are required to annually report health coverage information for each covered individual to the IRS by filing Forms 1095-B. The purpose of the form is to report whether individuals and dependents had minimum essential health coverage during the previous year, as required by ACA.
Change in 1095-B Requirements: Paperwork Burden Reduction Act
On December 23, 2024, President Biden signed into law the Paperwork Burden Reduction Act, providing relief from some administrative and reporting burdens for health plan sponsors under the Affordable Care Act (ACA). In particular, the Act removes the requirement of paper-based distribution of these forms to all covered individuals. Health plans are no longer required to automatically furnish Forms 1095-B to individuals, unless the forms are requested, so long as timely notice is provided. Forms 1095-B still must be filed with IRS by health plans, but individuals do not need to file a copy with their annual tax return. If a copy is requested by an individual, it must be provided within 30 days.
If a health plan opts not to automatically mail Forms 1095-B, there is still a requirement to provide notice in a clear, conspicuous and accessible manner on the plan’s website on how a copy of Form 1095-B can be obtained by all full-time employees and covered individuals. The IRS released Notice 2025-15, providing guidance on what the notice must include.
Harbour companies are complying with all changes in requirements related to Forms 1095-B in accordance with IRS rules on behalf of its clients.
Harbour & Zenith Highlight:
While federal rules no longer require mandatory postal mailing of Forms 1095-B, some states still have mandatory distribution requirements that plan sponsors may have to comply with if any covered individuals reside in those states. Currently, Rhode Island, Washington D.C., California and New Jersey require 1095-Bs to be postal mailed to its residents. Harbour companies will comply with any state mailing requirements that apply to its clients. Note: Massachusetts’s Form 1099-HC for reporting coverage of its residents is not impacted by the Paperwork Burden Reduction Act.
Staying Compliant with Evolving 1095-B Reporting Requirements
Staying compliant with IRS reporting requirements, especially amid regulatory changes like the Paperwork Burden Reduction Act—is essential to avoid penalties and ensure a smooth benefits process for your employees. While the distribution rules for Form 1095-B have been relaxed, the obligation to file with the IRS remains. Harbour is here to ensure your health plan remains fully compliant with all updated regulations. Contact us today to learn how we can support your compliance strategy and handle your reporting needs with confidence.