Most Common 2018 Coverage Codes You Need to Know for ACA Compliance
Form 1095-C: Line 14 Codes
The code used in line 14 will indicate to the IRS and recipients certain details about the healthcare coverage offered to that specific recipient. You will need a code for each month, and the code will indicate whether your business offered coverage that met minimum essential coverage (MEC), the minimum value (MV), and dependent coverage guidelines.Most Common Series 1 Codes - Offer of Coverage
- Code 1A. Qualifying Offer made to the employee, their spouse, and dependent(s), if any.
- Qualifying Offers provide MEC at MV with the Employee Required Contribution being no more than 9.5% of the mainland single federal poverty line, as adjusted.
- Code 1B. MEC offered at MV to the employee only.
- Code 1C. MEC offered at MV to the employee and their dependent(s).
- Code 1H. Coverage was not offered to the employee.
Form 1095-C: Line 16 Codes
In this section, you will explain in more detail what you have entered on line 14. Unlike line 14, line 16 can be left blank if one of the codes in series 2 apply to your employee's situations.
Most Common Series 2 Codes - Section 4980H Safe Harbor Codes and Other Relief for ALE Members
- Code 2A.
- The employee was not employed during this month.
- Do not use code 2A if the employee worked even one day during the month.
- Do not use code 2A if the employee was fired.
- Code 2B.
- The employee was not working full-time during this month.
- The employee was not full-time and did not enroll in coverage.
- The employee was full-time but coverage ended only because the employee resigned.
- Code 2C.
- The employee enrolled in the coverage offered.
- Do not use code 2C if code 1G is in line 14.
- Do not use code 2C if the coverage did not meet MEC.
- Do not use code 2C for months a terminated employee is enrolled in COBRA continuation coverage.