Proof of Insurance Tax Forms - (2/5/2016)
We have been receiving calls regarding Proof of Insurance Forms for tax filings produced by the NASI Health and Welfare Fund. There has been a delay in NASI sending out the forms, this is the first year for the requirement under the Affordable Care Act for the federal form for tax filing purposes. It is my understanding Massachusetts residents will be required to have the Massachusetts Form and the Federal form for the I.R.S. when filing your taxes. Non- Massachusetts residents will need the federal form for filing taxes for the first time this year. The Fund office has to send out 19,000 forms for the first time for the Federal requirement under the Affordable Care Act. The Business Managers received correspondence this week stating the forms may not be ready till next week or the week after. I know this may hold some of you up from filing your taxes longer than you would of like to have filed. My suggestion is to either delay in making appointments for filing, or ask your tax professional if you can file without the forms and present them at a later date. I apologize for any inconvenience this may cause, even though Local 550 does not produce the forms. Please see the information below presented from the fund office regarding this matter.
Business Manager/Secretary Treasurer
Sprinkler Fitters Local 550
46 Rockland Street
The following is a summary of the IRS Form 1095-B reporting requirements and the status of Funds efforts to produce the forms.
1095-B IRS REPORTING OF HEALTH COVERAGE IN 2016
Health insurance issuers (like the NASI Welfare Fund and NAS MT Welfare Fund) must file IRS Form 1095-B (“1095-B”) health insurance coverage for anyone that had coverage in 2015. The NASI Welfare Fund and NAS MT Welfare Fund will report 1095-B’s to all individual’s that had coverage which would include both active and retired participants that have not qualified for Medicare. 1095-B’s for Medicare eligible participants are reported by the government sponsor of that program. NASI expects to issue approximately 19,000 1095-B forms. The individual forms will show insurance coverage information for the participant and their dependents. If a participant was not covered for the entire year, the 1095-B will show the months that the participant and/or their dependents had coverage. Below are several scenarios and how they would be handled:
An active participant that was eligible for coverage the entire year. However, the participant got married in June 2015 and enrolled the spouse in the plan in July 2015. The 1095-B would show 12 months of coverage for the member, but only 6 months of coverage on the spouse.
An active participant that was eligible for coverage the entire year. This member has a spouse and three dependent children on the plan. In February 2015, his oldest child turned 26 and no longer was covered by the plan. The participant, his spouse, and two dependent children under the age of 26 would show 12 months of coverage. The child that turned 26 in February would only show two months of coverage.
A retired member with coverage that is under 65 and not yet on Medicare, but his spouse qualified for Medicare in November 2015. The 1095-B would show 12 months of coverage for the member, but his spouse would only show ten months of coverage. Medicare should be providing a 1095-B to show two months of coverage (November and December) for the spouse.
Originally the IRS required the 1095-B forms to be mailed to the participant by January 31, 2016. However, the IRS has extended the filing deadline to March 31, 2016. We are working through all the various scenarios to be sure the forms are correct. We hope to have the 1095-B forms mailed out in the next week or so. I have checked the IRS Form 1040 instructions and it states, in relevant part:
If you or someone in your family had health coverage in 2015, the provider of that coverage is required to send you a Form 1095-A, 1095-B, or 1095-C (with Part III completed), that lists individuals in your family who were enrolled in the coverage and shows their months of coverage. You may use this information to help complete line 61. However, you do not need to wait to receive these forms to file your return. You may have had health care coverage for some or all of 2015 even if you didn’t receive a form with this information, and you may rely on other in-formation about your coverage to complete line 61.
Since this is the first year that 1095-B forms have been provided, we expect a large number of questions. Keep in mind that eligibility of the participants and their dependents is protected health information under HIPPA and we will not be able to discuss the forms with the Business Manager/Agents without a privacy authorization form. Please have the participants contact the Fund Office directly with any questions.
If you have any questions or would like to discuss this matter, please let me know.
John P. Eger
Assistant Fund Administrator
NASI Welfare and Pension Funds
Phone (301) 429-4729
Fax (301) 429-4709
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