Common 1095-C Coverage Scenarios with Great Examples

Completing 1095-C forms can be confusing, but we’re here to make it simple with this list of common 1095-C coverage scenarios and examples. We’ve even created an interactive code helper tool to help make ACA filing easier.

Common 1095-C Coverage Scenarios:

Full-Time Employee, Enrolled All 12 Months, qualifying offer

In this example, the employee (EE) was enrolled in a plan that provided Minimum Essential Coverage (MEC) at Minimum Value (MV). This plan was offered to the EE, the spouse and dependents.

  • Line 14 – All 12 Months – Code 1A – The ALE Member made a qualifying offer in which the EE was enrolled for all 12 months.
  • Line 15 – Should be left blank, because a qualifying offer was made. 
  • Line 16 – Should be left blank, because EE enrolled in a plan that was a qualifying offer. 
Example 1: Full-Time Employee: Enrolled All 12 Months, qualifying offer
Example 1: Full-Time Employee: Enrolled All 12 Months, qualifying offer

Full-Time Employee,Enrolled All 12 Months

In this example, the employee (EE) was enrolled in a plan that provided Minimum Essential Coverage (MEC) at Minimum Value (MV) and provided MEC to the spouse and dependents. The EE was enrolled for the entire year.

  • Line 14 – All 12 Months – Code 1E – MEC providing MV offered to EE and MEC was offered to the spouse and dependents. 
  • Line 15 – All 12 Months – The EEs’ monthly share of the lowest-cost, self-only coverage offered needs to be populated for the months that the EE elected coverage.
  • Line 16 –All 12 Months – Code 2C – EE elected coverage for all 12 months.
Common 1095-C Coverage Scenarios 2
Example 2: Full-Time Employee: Enrolled All 12 Months

Full-Time Employee, Waived Coverage All 12 Months

In this example, the employee (EE) was offered coverage that provided Minimum Essential Coverage (MEC) at Minimum Value (MV) and provided MEC to spouse and dependents. The EE waived coverage for the entire year. 

  • Line 14 –All 12 Months – Code 1E – MEC providing MV offered to EE, and MEC offered to spouse, children. EE waived coverage.
  • Line 15 – All 12 Months – The EEs’ monthly share of the lowest-cost, self-only coverage offered needs to be populated for the months that the EE was offered coverage.
    • Even though coverage was waived, this has to be listed, because 1A or 1H were not used on Line 14. 
  • Line 16 – Can be left blank, because coverage was waived.
    • This can be left blank unless another safe harbor applies (ie: 2G – The coverage that was offered is affordable based on the federal poverty line safe harbor).
Example 3 - Common 1095-C Coverage Scenarios
Example 3: Full-Time Employee: Waived Coverage All 12 Months

Full-Time Employee, Hired Midyear

In this example, the employee (EE) was hired as a full-time employee (FTE) on April 10th and is eligible for coverage on the first of the month after the Limited Non-Assessment Period (LNAP) of 30 days (June 1st). The coverage that is offered provides Minimum Essential Coverage (MEC) at Minimum Value (MV) to the EE and provides MEC to spouse and dependents.

  • Line 14
    • Jan-May – Code 1H – EE was not hired or was in a Limited Non-Assessment Period (LNAP); therefore, was not offered coverage. 
    • June-Dec – Code 1E –   MEC providing MV was offered to EE, and MEC offered to spouse and dependents. EE elected coverage for these months. 
  • Line 15
    • Jan-May – Should be left blank, because coverage was not offered during these months. 
    • June-Dec – The EEs’ monthly share of the lowest-cost, self-only coverage offered needs to be populated for the months that the EE elected coverage.
  • Line 16
    • Jan-Mar – Code 2A – EE was not yet hired.
    • Apr-May – Code 2D – EE was in LNAP.
    • June-Dec – Code 2C – EE was enrolled in the offered coverage.
Example 4 - Common 1095-C Coverage Scenarios 4
Example 4: Full-Time Employee: Hired Midyear

Full-Time Employee, Hired Midyear, Qualifying offer

In this example, the employee (EE) was hired as a full-time employee (FTE) on May 14th and is eligible and enrolled in coverage on the first of the month after the limited non assessment period of 60 days (August 1st). The coverage that is offered provides Minimum Essential Coverage (MEC) at Minimum Value (MV) to the EE, spouse, and dependents. 

  • Line 14
    • Jan-July – Code 1H – EE was not hired or was in a LNAP; therefore, was not eligible for coverage. 
    • Aug-Dec – Code 1A – The ALE Member made a qualifying offer in which the EE was enrolled for these months. 
  • Line 15 – Should be left blank. 
  • Line 16
    • Jan-Apr – Code 2A – EE was not yet hired.
    • May-July – Code 2D – EE was in LNAP.
    • July-Dec – Should be left blank, because EE was enrolled in a plan that was a qualifying offer. 
Example 5 - Common 1095-C Coverage Scenarios
Example 5: Full-Time Employee: Hired Midyear, Qualifying offer

Part-Time Employee Becomes Full-Time Midyear 

In this example, the employee (EE) was part time then promoted to full-time on February 4th. The employee is eligible for coverage on the first of the month after the Limited Non-Assessment Period (LNAP) of 30 days (May 1st).  The coverage that is offered provides MEC at MV to the EE and provides MEC to spouse and dependents.

  • Line 14
    • Jan-Apr – Code 1H – EE was PT or was in a LNAP; therefore, was not eligible for coverage. 
    • May-Dec – Code 1E – MEC providing MV was offered to EE, and MEC offered to spouse and dependents. EE elected coverage for these months. 
  • Line 15
    • Jan-Apr– Should be left blank, because coverage was not offered during these months. 
    • May-Dec – The EEs’ monthly share of the lowest-cost, self-only coverage offered needs to be populated for the months that the EE elected coverage.
  • Line 16
    • Jan-Mar – Code 2B – EE was PT; therefore, not eligible for coverage. 
    • Apr – Code 2D – EE was in LNAP.
    • May-Dec – Code 2C – EE was enrolled in the offered coverage.
Example 6 - Common 1095-C Coverage Scenarios
Example 6: Part-Time Employee Becomes Full-Time Midyear

Eligible Employee Elects Coverage Midyear 

In this example, the employee (EE) waived coverage during the yearly enrollment period. This employee got married in July, which is a Qualifying Life Event (QLE), and chose to enroll herself and her husband in the plan effective August 1.  The coverage that is offered provides Minimum Essential Coverage (MEC) at Minimum Value (MV) to the EE, provides MEC to spouse and dependents, and is affordable based on the Federal Poverty Line (FPL) safe harbor. 

  • Line 14
    • Jan-June – Code 1H – EE waived coverage; therefore, was not offered coverage. 
    • July-Dec – Code 1E – MEC providing MV offered to EE and MEC was offered to the spouse and dependents. 
  • Line 15
    • Jan-June– Should be left blank, because coverage was not offered during these months. 
    • July-Dec – The EEs’ monthly share of the lowest-cost, self-only coverage offered needs to be populated for the months that the EE elected coverage.
  • Line 16
    • Jan-June – Code 2G – The coverage offered to the employee is affordable based on the FPL safe harbor.
    • July-Dec – Code 2C – EE was enrolled in the offered coverage.
Example 7 - Common 1095-C Coverage Scenarios
Example 7: Eligible Employee Elects Coverage Midyear 

Terminated Employee

In this example, the employee (EE) was enrolled starting at the beginning of the year, and was terminated from the company on April 10th. The coverage also ends on the date of termination. The coverage that was offered provides Minimum Essential Coverage (MEC) at Minimum Value (MV) to the EE and provides MEC to spouse and dependents. 

* * Please note: Since the employee was terminated in the middle of April, they will not have a coverage code on Line 14 or 16, because they were not covered for all of the days of the month. **

  • Line 14
    • Jan-Mar – Code 1E – MEC providing MV offered to EE and MEC was offered to the spouse and dependents.
    • Apr-Dec – Code 1H – EE was terminated which ended the offer of coverage. 
  • Line 15
    • Jan-Mar – The EEs’ monthly share of the lowest-cost, self-only coverage offered needs to be populated for the months that the EE elected coverage.
    • April – Should be left blank, because the employee was not offered coverage the entire month.
    • MayDec – Should be left blank, because coverage was not offered during these months.
  • Line 16
    • Jan-Mar – Code 2C – EE was enrolled in the offered coverage.
    • April – Code 2B – EE was terminated and coverage was terminated on the same day, therefore not offered the entire month.
    • MayDec – Code 2A – The employer did not employ this person during these months.
Example 8 - Common 1095-C Coverage Scenarios 8
Example 8: Terminated Employee

Common 1095-C Coverage Scenarios – COBRA

*Self-Insured Only* Employee Elects COBRA Upon Termination 

In this example, the employee (EE) was enrolled in employer-sponsored self-insured coverage that offered Minimum Essential Coverage (MEC) at Minimum Value (MV) to the EE and MEC to the spouse and dependents. The EE was terminated in October and was offered COBRA continuation coverage. The employee enrolled in this coverage in November and December.

  • Part II, Lines 14-16 – This example will be the same as the one used for example #8: Terminated Employee.
  • Part III – Complete for each covered individual that was enrolled in coverage for at least one month.
    • Part III is where to indicate the months that the employee and/or spouse and dependents are enrolled in coverage. Since the EE was enrolled in the employer sponsored plan for Jan-Oct and elected COBRA for Nov-Dec, the EE was covered for all 12 months. 
Example 9 - Common 1095-C Coverage Scenarios
Example 9: *Self-Insured Only* Employee Elects COBRA Upon Termination

*Self-Insured Only* Employee Terminated in Prior Year (Non-Employee), Enrolled in COBRA All Year 

In this example, the employee was terminated in the last tax year and elected COBRA. This employee has chosen to remain enrolled in COBRA for this entire tax year, for himself and 2 dependents.

  • Line 14 – All 12 Months – Code 1G – The employer offered self-insured coverage to an employee who was not full time at any point in the year.
    • Please Note: When Code 1G is used, it must be specified for all 12 months or not at all. 
  • Line 15 – Should be left blank.   
  • Line 16 – Should be left blank.
  • Part III – Complete for each covered individual that was enrolled in coverage for at least one month.
Example 10 - Common 1095-C Coverage Scenarios
Example 10: *Self-Insured Only* Employee Terminated in Prior Year, Enrolled in COBRA All Year 

Employee Receives COBRA Offer Due to Reduction in Hours

In this example, the employee (EE) was full-time from January 1 through October 31. They were enrolled in coverage that offered Minimum Essential Coverage (MEC) at Minimum Value (MV) to the EE and MEC to the spouse and dependents, with an employee-required contribution (ERC) of $150 monthly.

The EE transferred to a part-time position starting November 1, and they were no longer eligible for coverage under the terms of their employer’s health plan. They received a COBRA offer with an employee-required contribution of $250 monthly for self-only coverage providing minimum value. The employee elected to enroll in the offered coverage.

  • Line 14
    • Jan-Oct – Code 1E – MEC providing MV offered to EE and MEC was offered to the spouse and dependents.
    • Nov-Dec – Code 1B – MEC providing MV offered to EE only.
  • Line 15
    • Jan-Oct – $150
    • Nov-Dec – $250
  • Line 16
    • Jan-Oct – 2C — EE enrolled in coverage offered
    • Nov-Dec –2C

*Self-Insured* Spouses and Dependents of Employees Separately Elect COBRA

In some situations, such as if the employee is deceased or chooses not to enroll in COBRA, a current or former employee’s spouse and/or dependents may be offered COBRA.

If the enrolled is a spouse or dependent and separately elects COBRA, then this offer should be reported separately from the employee’s coverage.

In this example, the COBRA enrollee is a former spouse of an employee who lost coverage due to divorce.

  • Line 14 – All 12 months – 1G – Not an employee for all 12 months
  • Line 15 – Blank (Must be blank when using code 1G)
  • Line 16 – Blank (Must be blank whenusing code 1G)
  • Part III – Coverage information for only the months in which the former spouse was enrolled in COBRA

Please note: The IRS has stated that the employer may use Form 1095-B instead. This is a good alternative if the employer does not have the former spouses SSN.


Important Note: For non-self-insured plans, these examples still apply. However, only self-insured plans need to complete Part III for covered individuals.


Common 1095-C Coverage Scenarios – Union

Employee was Enrolled in a Union-Sponsored Plan All Year 

In this example, the employee (EE) was enrolled in a union-sponsored medical plan for all 12 months of the year.

  • Line 14 – All 12 Months – Code 1H – The employee was eligible for a multi-employer (union) plan; therefore, no coverage was offered from the employer. 
  • Line 15 – Should be left blank.
  • Line 16 – All 12 Months – Code 2E – The EE was enrolled in a union-sponsored plan, so the employer is eligible for the multi-employer interim relief rule. 
Example 11 - Common 1095-C Coverage Scenarios
Example 13: Employee was Enrolled in a Union-Sponsored Plan All Year

BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.

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