The State of California requires most California residents to maintain health coverage or pay a state tax penalty. With limited exceptions, the California law imposes a tax assessment 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 employer-sponsors of self-funded health plans to notify individuals of their 2021 health coverage and offers of coverage by January 31, 2022. This reporting may be satisfied by providing IRS Federal ACA Tax Form 1095-B or C. While Form 1095-B/C for federal Affordable Care Act compliance purposes has to be furnished by March 2, 2022, if an employer is using this form to meet California state requirements, it must be delivered by the end of January. 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, 2022.
