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What Employers Need to Know about Form 1095-B & 1095-C

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Large Employers

Form 1095-C is used by employers with 50 or more full-time (or full-time equivalent) employees to report Minimum Essential Coverage (MEC) under section 6055 and the offer of coverage under section 6056 to the IRS.

Form 1095-C reports whether employers offered coverage to their employees, if the coverage was affordable according to ACA standards, and provides a couple of details about the cost of coverage offered.

The 1095-C has 3 parts:

  • Part I identifies the employee and employerPart II indicates the period of coverage and states the lowest cost plan that was available at that time
  • Part III lists the individuals covered under the employee’s medical plan

Employers that are fully insured

  • The employer completes only parts I and II of Form 1095-C and sends the form to the employees.
  • Employers must submit Form 1095-C to the IRS using Form 1094-C (transmittal form).
  • The insurance company will send Form 1095-B to the IRS and enrolled employees to provide the information collected in part III of Form 1095-C.

Employers that are self-funded

  • Employers will complete parts I and III of Form 1095-C for all employees that are enrolled in health coverage, whether or not the employee is full-time.
  • Employers will complete parts I, II, and III of Form 1095-C for all full-time employees.
  • Employers must send Form 1095-C to the employees eligible for benefits.
  • Employers must submit Form 1095-C to the IRS using Form 1094-C (transmittal form).


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