What is the purpose of the 1095-C form?

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Multiple Choice

What is the purpose of the 1095-C form?

The form 1095-C is all about reporting employer-provided health insurance for ACA purposes. It is sent by the plan sponsor to both the employee and the IRS and shows that coverage was offered, and, for self-funded plans, details about how coverage was offered and enrolled (including which months coverage was available). This information helps the IRS verify compliance with employer mandate rules and lets the employee confirm their coverage status for tax purposes. It's not about listing deductibles or used to apply for a health savings account, and it's not something issued only to retirees. Those aspects are handled by other forms or processes, so the statement that describes offering and enrollment details—and its use for tax reporting—best captures the purpose of the 1095-C.

The form 1095-C is all about reporting employer-provided health insurance for ACA purposes. It is sent by the plan sponsor to both the employee and the IRS and shows that coverage was offered, and, for self-funded plans, details about how coverage was offered and enrolled (including which months coverage was available). This information helps the IRS verify compliance with employer mandate rules and lets the employee confirm their coverage status for tax purposes.

It's not about listing deductibles or used to apply for a health savings account, and it's not something issued only to retirees. Those aspects are handled by other forms or processes, so the statement that describes offering and enrollment details—and its use for tax reporting—best captures the purpose of the 1095-C.

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