ACA
Elevate

The Affordable Care Act (ACA) is a significant healthcare reform law enacted in the United States in 2010. It aims to increase access to affordable health insurance, improve the quality of healthcare, and reduce overall healthcare costs. Key provisions include the establishment of health insurance marketplaces, expansion of Medicaid, protections for individuals with pre-existing conditions, coverage for young adults under their parents’ plans, and requirements for essential health benefits in insurance plans. Despite ongoing debates and changes, the ACA remains a significant piece of legislation shaping the American healthcare landscape. It also brought reporting and compliance requirements for certain employers.

ACA reporting refers to the requirement for applicable large employers (ALEs) under the Affordable Care Act (ACA) to report information about the health insurance coverage they offer to their employees. This reporting is typically done annually to the Internal Revenue Service (IRS) using Forms 1094-C and 1095-C. The purpose of ACA reporting is to ensure compliance with the ACA’s employer mandate and to provide the IRS with information to verify whether individuals have the minimum essential coverage. ACA reporting helps the IRS enforce penalties for non-compliance and allows individuals to claim premium tax credits if they purchase coverage through the Health Insurance Marketplace.

The ACA employer mandate, also known as the employer shared responsibility provision, requires applicable large employers (ALEs) to offer affordable health insurance coverage that meets minimum value standards to full-time employees and their dependents, or potentially face penalties. ALEs are generally those with 50 or more full-time employees, including full-time equivalent employees. Under this mandate, ALEs must offer minimum essential coverage to at least 95% of their full-time employees and their dependents, or they may face penalties if at least one full-time employee receives a premium tax credit for purchasing coverage through the Health Insurance Marketplace. Compliance with the ACA employer mandate involves careful tracking and reporting of employee hours and health insurance offerings to ensure adherence to the law’s requirements.