Form 1095-B, Line 8 Codes identify the origin of health coverage using a single letter. This helps the IRS understand where the policy came from and how the rest of the form should be interpreted.

Contents hide

1 Who usually files Form 1095-B

2 What Line 8 is used for

3 Line 8 codes and what they mean

4 When to complete Part II (Employer information)

5 How employers can choose the correct line 8 code

6 Common mistakes to avoid

7 Where to verify details

Form 1095-B is used to report which individuals are enrolled in minimum essential coverage and is typically filed by health insurance issuers, certain plan sponsors of self-insured coverage, government agencies, and multiemployer plans.

Selecting the correct code is important to ensure the form is processed accurately.

Who usually files Form 1095-B

Health insurance issuers and carriers for most insured plans, including employer-sponsored insured plans and SHOP coverage.
Small employers that sponsor self-insured group health plans and are not applicable large employers.
Government agencies for government-sponsored programs such as Medicaid, Medicare, CHIP, TRICARE, and others designated as minimum essential coverage.
Plan sponsors of multiemployer plans when applicable.

Marketplace qualified health plans are generally reported by the Marketplace on Form 1095-A, while SHOP coverage is reported on Form 1095-B by issuers.

What Line 8 is used for

Line 8 is a single-letter code that states the origin of the health coverage. Think of it as the source indicator for the policy being reported. Choosing the correct line 8 code helps determine whether Part II of Form 1095-B must be completed and clarifies how the coverage was provided.

Line 8 codes and what they mean

Line 8 Code	Coverage Type (IRS Definition)	Typically Reported By	When to Use
A	Small Business Health Options Program (SHOP)	Insurance issuers	Used when reporting SHOP coverage. Complete Part II with employer information.
B	Employer-sponsored coverage, except for an individual coverage HRA	Insurance issuers (for insured coverage) or small employers with self-insured plans	Used for traditional employer-sponsored coverage that is not an ICHRA. Insurers complete Part II; small employers with self-insured plans skip Part II.
C	Government-sponsored program	Government agencies (e.g., CHIP, Medicaid, Medicare, TRICARE, VA, etc.)	Used when coverage is provided under a government-administered MEC program.
D	Individual market insurance	Insurance issuers	Used when reporting non-Marketplace individual policies. Marketplace coverage is reported on Form 1095-A, not Form 1095-B.
E	Multiemployer plan	Plan sponsors	Used when coverage is provided through a multiemployer arrangement, such as a union plan.
F	Other designated minimum essential coverage	Varies (programs designated by HHS)	Used for coverage types specifically designated by HHS as MEC when not covered by A–E.
G	Employer-sponsored coverage that is an individual coverage HRA (ICHRA)	Employers offering ICHRAs	Used when reporting an ICHRA that reimburses employees for individual market coverage.

When to complete Part II (Employer information)

If an insurer enters code A or B on Line 8, it completes Part II with the employer’s name, EIN, and address.
If an employer is reporting self-insured group health plan coverage on Form 1095-B and uses code B, it does not complete Part II. Skip to Part III and Part IV to report the issuer or plan sponsor and covered individuals.

These rules come directly from the IRS instructions for the 2024 tax year and help filers avoid unnecessary errors or rejects.

How employers can choose the correct line 8 code

Line 8 codes are based on the origin of the health coverage. Filers should review the source of the coverage to understand which category applies. For example, the code reflects whether the coverage comes from an employer plan, a government-sponsored program, an individual market policy, or another type of arrangement.

Coverage source: The code identifies whether the policy originated from an employer, a government program, a multiemployer plan, or the individual market.
Type of employer plan: Traditional employer-sponsored coverage is categorized differently than employer-sponsored ICHRAs.
Marketplace vs. SHOP: Marketplace coverage is reported on Form 1095-A by the Marketplace, while SHOP coverage is reported by issuers on Form 1095-B.
Government responsibility: Government agencies are responsible for filing forms when the coverage is through a government-administered program.

Filers should always consult the official IRS instructions for Forms 1094-B and 1095-B to determine the appropriate line 8 code for their situation.

Common mistakes to avoid

Mixing Marketplace and SHOP. Marketplace qualified health plans are reported on Form 1095-A by the Marketplace, not on 1095-B by the employer. SHOP is different and is reported by issuers on 1095-B.
Forgetting the ICHRA distinction. Employer-sponsored ICHRAs are specifically code G, not code B.
Completing Part II when not required. Employers that file 1095-B for self-insured coverage and use code B should skip Part II.

Where to verify details

Always confirm the current year’s IRS form and instructions before filing. These provide the authoritative list of line 8 codes, who must file, and when to complete Part II.

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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.