ACA-Track™

Employer ACA Compliance & Reporting Solution

  • Contact Us
  • |
  • Request Demo
  • About
    • FAQ
  • Businesses & Organizations
  • School Districts
  • Partners
  • Services
  • Resources
    • Blog
    • Full-time Equivalent (FTE) Employee Calculator
    • Vendor Assessment

November 12, 2020 By justntime

How an Individual Coverage HRA impacts reporting for the Affordable Care Act in 2020

As an employer, do you offer an Individual Coverage HRA? If so, this will impact the information required on the IRS on Form 1095-C.

The Individual Coverage Health Reimbursement Arrangement (HRA) was introduced in 2020 and is an alternative to a traditional group health plan. The HRA’s primary goals are to allow employers to control costs and provide greater flexibility than a conventional plan. The employer contributes money to the HRA, and employees can use the money to pay for qualifying medical expenses, while employers can define what qualifies as a medical expense. 

Commonly covered expenses often include: 

  • Insurance premiums for a health plan purchased through the Marketplace
  • Premiums for dental and vision insurance
  • Out-of-pocket costs for doctor visits and treatments

How does this impact your Affordable Care Act reporting?

Line 14 of the 1095-C now has codes related to the Individual Coverage HRA. Codes 1L through 1S indicate different scenarios and offers of coverage about the ICHRA. Listing the incorrect code on a 1095-C Form puts you at risk of receiving penalty assessments from the IRS. 

If you need assistance with ACA tracking and reporting, please contact us or request a demo. 

Filed Under: ACA Compliance

Contact Us To Become A Partner

1.800.488.7395

 

Latest from the blog

  • Preparing for 2020 ACA Reporting Starts Now!
  • How an Individual Coverage HRA impacts reporting for the Affordable Care Act in 2020
  • Case Study: Fort Worth Independent School District
  • IRS Updates Filing Status for ACA Information Returns
  • IRS Extends Form 1095 Distribution Deadline for 2019 ACA Reporting
  • Request A Demo
  • Support
  • Contact
  • Terms & Conditions

Address

303 N Hurstbourne Pkwy, Ste 110
Louisville KY 40222

Encouraging Words for the Day

A heart at peace gives life to the body, but envy rots the bones.
Proverbs 14:30
A gentle answer turns away wrath, but harsh words stir up anger
Proverbs 15:1
A cheerful heart is good medicine, but a crushed spirit dries up the bones.
Proverbs 17:22
Copyright © 2023 ACA-Track, Inc

Information provided by PSST, LLC concerning the Affordable Care Act is not legal advice and should not be treated as such. If you have questions about how the Affordable Care Act will affect you as an employer, please consult legal counsel.

Privacy Policy | Terms & Conditions

Website Design by The Content Squad