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Code 1A – Offered minimum value coverage to the full-time employee with an employee contribution for self-only coverage less than or equal to 9.5 percent of the federal poverty level (FPL) for the 48 contiguous states and offered at least minimum essential coverage to the spouse and dependent children (a “qualifying offer”). Instead, it must enter the Qualifying Offer code 1A on Form 1095-C, line 14, for any month for which the employee received a Qualifying Offer (or in the all 12 months box if the employee received a Qualifying Offer for all 12 months), and must leave line 15 blank for any month for which code 1A is entered on line 14. On July 13, 2020, the IRS released a Form 1095-C draft, which adds new 1095-C codes from 1L to 1S for employers to indicate the method used to determine their ICHRA plan’s affordability. Click here to learn more about ICHRA. The codes are mentioned here: On Form 1095-C, line 14, the ALE Member should enter code 1A, Qualifying Offer, for each employee receiving a Qualifying Offer for all 12 months of the year.

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1A: The 1A code communicates that the individual received a Qualifying Offer, which is an offer of Minimum Essential Coverage that provides Minimum Value, and is affordable under the mainland single federal poverty line, and the individual’s spouse and dependents received at least Minimum Essential Coverage. .

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MEC was offered to the employee, spouse and dependents with MV, and is considered affordable at the employee-only level. The type of coverage we report on Form 1095-C is employer-sponsored coverage. Below is a table explaining the different codes used on line 14. You can also find an explanation of the codes on the back of your Form 1095-C. Code Explanation 1A This code used is when an employer offered MEC providing minimum value to full-time employees All applicable large employers (ALE) must file Forms 1094-C and 1095-C with the IRS and furnish a copy of the 1095-C to all full-time employees. The insurance carrier for a fully insured plan must complete Forms 1094-B and 1095-B.
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Q: What are employees supposed to do with the 1095-B when they receive it? A: The 1095-B may be kept for record keeping purposes for that employee, their spouse, and/or dependents. Both the 1095-B and Part III of the 1095-C (if the plan is self-funded) are proof for the employee that they had minimum essential coverage under the individual mandate.

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