Code Section 6055

Code Section Effective Date Name of Act Name of Provision 10yr Revenue Estimate ($millions)
6055 and 6724(d) 1/1/2014 Patient Protection and Affordable Care Act Reporting of Health Insurance Coverage  *See note below

*Note on Revenue Estimate

See table 3 of CBO estimate letter addressed to Speaker Pelosi on March 20, 2010,

Reporting of Health Insurance Coverage

Explanation of Provision

Under the provision, insurers (including employers who self-insure) that provide minimum essential coverage 767 to any individual during a calendar year must report certain health insurance coverage information to both the covered individual and to the IRS. In the case of coverage provided by a governmental unit, or any agency or instrumentality thereof, the reporting requirement applies to the person or employee who enters into the agreement to provide the health insurance coverage (or their designee).

The information required to be reported includes: (1) the name, address, and taxpayer identification number of the primary insured, and the name and taxpayer identification number of each other individual obtaining coverage under the policy; (2) the dates during which the individual was covered under the policy during the calendar year; (3) whether the coverage is a qualified health plan offered through an exchange; (4) the amount of any premium tax credit or cost-sharing reduction received by the individual with respect to such coverage; and (5) such other information as the Secretary may require.

To the extent health insurance coverage is provided through an employer-sponsored group health plan, the insurer is also required to report the name, address and employer identification number of the employer, the portion of the premium, if any, required to be paid by the employer, and any other information the Secretary may require to administer the new tax credit for eligible small employers.

The insurer is required to report the above information, along with the name, address and contact information of the reporting insurer, to the covered individual on or before January 31 of the year following the calendar year for which the information is required to be reported to the IRS.

The provision amends the information reporting provisions of the Code to provide that an insurer who fails to comply with these new reporting requirements is subject to the penalties for failure to file an information return and failure to furnish payee statements, respectively.

The IRS is required, not later than June 30 of each year, in consultation with the Secretary of HHS, to provide annual notice to each individual who files an income tax return and who fails to enroll in minimum essential coverage. The notice is required to include information on the services available through the exchange operating in the individual’s State of residence.

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767- As defined in section 5000A of the Patient Protection and Affordable Care Act, Pub. L. No. 111–148, as amended by section 10106, as further amended by section 1002 of the Health Care and Education Reconciliation Act of 2010, Pub. L. No. 111–152.
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