AICPA Suggests Changes to Draft Health Care Information Reporting Forms

December 18, 2014

The American Institute of CPAs (AICPA) sent recommendations to the Internal Revenue Service (IRS) on November 25 about how the Affordable Care Act draft information reporting forms – Form 1095-A, Health Insurance Marketplace Statement, and Form 1095-B, Health Coverage – could be modified in order to minimize confusion and provide greater clarity to taxpayers and tax practitioners.  Form 1095-A is mandatory for 2014 reporting; Form 1095-B is voluntary for 2014 reporting and mandatory for 2015 reporting.

The AICPA wrote in its letter that it applauds the IRS for issuing draft information reporting forms and instructions that “are both clear and concise,” but urged the IRS to make the recommended changes to the final versions of the forms and accompanying instructions.

For Form 1095-A, Health Insurance Marketplace Statement, the AICPA recommended changing the title of Part III Household Information, Column A from “Monthly Premium Amount” to “Monthly Premium Amount for Minimum Essential Coverage,” in which only insurance premiums paid for Minimum Essential Coverage would be reported.  In addition, another column titled “Monthly Premium Amounts – All Other Coverage,” should be inserted in order to report coverage such as stand-alone dental coverage purchased through the Marketplace.  The total of the two columns should equal the total of all monthly premiums paid by the household to the Marketplace.

Regarding Form 1095-B, Health Coverage, the AICPA recommended changing the language on the form in order to “alert recipients of Form 1095-B, as well as tax practitioners using the form to prepare a client’s tax return, that there is an exception to when Part II must be completed, even if there is a letter “A” or “B” on Part I, Line 8.”