California ACA Reporting

Posted by BAS - 21 January, 2021

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The State of California requires residents to maintain health coverage or pay a tax penalty. This requirement is in addition to the federal Affordable Care Act mandate. Beginning with the 2020 tax year, most California residents (and their dependents) must have individual, Marketplace or employer-provided health coverage or pay a state tax assessment. With limited exceptions, the California law imposes a penalty tax on any resident who files a California income tax return and does not have coverage for themselves and their spouses, dependent children and resident domestic partners.

California requires insurers and sponsors of self-funded health plans to notify individuals of their 2020 coverage and offers of coverage by January 31, 2021. This reporting may be satisfied by providing Form 1095-B or C, but the form must be furnished by the end of the month. This timing differs from the timing for furnishing 1095 forms under the federal Affordable Care Act. Employers that sponsor self-funded health plans along with insurers and other providers of health coverage must also report offers of coverage to the California Franchise Tax Board by March 31 of the year following the coverage year.

If you are a self-funded applicable large employer or a coverage provider with California residents, you should make sure your 1095-B/C reporting requirement will be satisfied by January 31, 2021.

Topics: Health Care Reform (ACA), Affordable Care Act, HR & Benefit Plans, HR & Benefits News


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