As 2016 Affordable Care Act reporting is approaching, many insurance companies are contacting members to obtain demographic data.
Insurers are required to report information to the IRS and employees about their coverage. On these reports, insurers must provide information including members’ names, tax-identification (social security) numbers, and months of coverage. Information must be reported for members and their covered dependents.
Insurers may not have social security numbers for all members and for their covered dependents. In order to report using a birthdate instead of a social security number, the insurer must reach out to the individual requesting the social security number at least 3 times. Insurers are making their outreach to members asking them to provide the requested information.
If an insurer is not able to accurately report health coverage status because a proper social security number is not available, the member may have difficulty providing coverage. If an individual cannot prove that he or she has proper coverage, the person may face a penalty.
Employers should be aware of insurers’ outreach in case employees raise questions about the social security number request.