News & Updates
Internal Revenue Service (IRS) individual shared responsibility provisions, individuals who are not exempt must indicate on their tax returns that they had minimum essential coverage. In the case of fully insured groups, UnitedHealthcare is required to furnish Form 1095-B to responsible individuals insured with them and file reports with the IRS that are used to verify the accuracy of that information.
Form 1095-B Distribution
For an aggregate group such as a controlled group, association or Multiple Employer Welfare Arrangement (MEWA), IRS regulations require that UHC reports coverage of the actual employer using the employer’s name shown on the W-2 Form furnished to their employees. On the Form 1095-Bs that were issued by UnitedHealthcare for the 2015 tax year, the employer name, address, Employer Identification Number (EIN) was that of their parent company, association or MEWA.
For the 2016 tax year, it is important that the health coverage is reported under the name of the actual employer, i.e., the employer name shown on the employees’ W-2 Forms. IRS penalties may apply if UHC does not adhere to this reporting requirement.
How UnitedHealthcare is collecting employer data
To collect and validate this information, a letter was sent to Small Business fully insured employers beginning July 18, 2016 requesting them to confirm if they are a controlled group, association or MEWA. The letter included a unique link to an online survey where the employer indicates whether or not they are an aggregate group. Data collected will be used to begin the set-up of the employer EINs in UnitedHealthcare systems.
It is essential that UnitedHealthcare obtain this information now to begin the set-up and testing process and also to allow the employer to begin their own system preparation.
For questions, please contact a member of your b&p Sales Team - 888.722.3373.