Affordable Care Act
Overview
The Affordable Care Act was passed by Congress and signed into law by the President on March 23, 2010. On June 28, 2012 the Supreme Court rendered a final decision to uphold the health care law. The ACA was enacted to increase the quality and affordability of health insurance, lower the uninsured rate by expanding public and private insurance coverage, and reduce the costs of healthcare for individuals and the government. It introduced mechanisms like mandates, subsidies, and insurance exchanges. The law requires insurance companies to cover all applicants within new minimum standards and offer the same rates regardless of pre-existing conditions or gender.
The Individual Mandate
Beginning in 2014, the Affordable Care Act includes a mandate for most individuals to have health insurance or potentially pay a penalty for noncompliance. Individuals are required to maintain Minimum Essential Coverage (MEC) for themselves and their dependents. Some individuals will be exempt from the mandate or the penalty, while others may be given financial assistance to help them pay for the cost of health insurance.
Did You Meet the ACA Individual Mandate Requirement?
All of SMU’s medical plans meet the ACA Minimum Essential Coverage and affordability requirements and all regular employees scheduled to work 20 or more hours per week are offered medical coverage. If you and your dependents were covered for all of 2015 (and each year thereafter), the requirement to have health coverage is satisfied and no penalty will be assessed.
How Is This Information Reported?
Every employee who was eligible for health coverage in 2015 will receive a 1095-C no later than March 31, 2016. Even if you declined to sign up for SMU medical coverage, you will still receive a 1095-C. Information on this form will also be reported to the IRS.
If you and all of your dependents had MEC for each month of the tax year, you will indicate this on your tax return by checking a box on your Form 1040, 1040A or 1040EZ. You are not required to file your Form 1095-C with your 2015 tax return but you should provide a copy to your accountant or tax preparer and keep a copy with your tax records. You also need to provide a copy to your spouse or dependent children if they file a separate tax return. Visit the IRS.gov ACA website to review a comprehensive set of questions and answers regarding the Individual Mandate and reporting requirements.