IRS Notice: ACA May Require Coverage Providers to List Social Security Numbers

  • Posted by: J. Kent Gervasini |
  • 9/27/15 |
  • 10:44 PM
IRS Notice: ACA May Require Coverage Providers to List Social Security Numbers

Health insurance companies may request that members (employers sponsoring coverage) provide them with the social security numbers of those covered by their policies (employees, spouses and children).

This is because the Affordable Care Act (ACA) requires every provider of minimum essential coverage (MEC) to report that coverage by filing an information return (Form 1095-B, Health Coverage) with the IRS and furnishing a statement to covered individuals.
The information is used by the IRS to administer – and individuals to show compliance with – the health care law.

In 2016 Employers Are Required to File, Form 1095-B, Health Coverage, with the IRS
In 2016 employers will file with the IRS Form 1095-B and will also furnish a statement to its employees to report coverage information from calendar year 2015. The information received by the IRS will be used to verify information on employee’s individual income tax return.

Why Does the ACA Require Coverage Providers to List SSN on Form 1095-B?
The law requires coverage providers (employers) to list social security numbers of all covered individuals on Form 1095-B. Why?

If SSN of all employees and the SSNs of all covered individuals are not provided to the sponsor of coverage (employers), the IRS may not be able to match the Form 1095-B with the individuals to determine that they have complied with the individual shared responsibility provision.

Form 1095-B Shows the IRS that in 2015 Individuals Had Qualifying Health Coverage
The Form 1095-B will provide information for your employee’s income tax return that shows employee, their spouse, and individuals your employee claims as dependents had qualifying health coverage for some or all months during the year. Anyone on employee’s return who does not have minimum essential coverage (MEC), and who does not qualify for an exemption, may be liable for the individual shared responsibility payment. For more information, see Questions and Answers, Reporting Social Secuirty Numbers to Health Insurance Companies,

The information above does not constitute legal advice.  Employers, individuals, Denver staffing and temporary agencies should consult a Colorado labor or employment attorney with questions, or for guidance and more information

Source: U.S. Internal Revenue Service (08/27/15) Issue Number: HCTT-2015-53

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