Massachusetts has some additional health insurance filing requirements that aren’t covered by simply completing your federal ACA filing. All MA residents who has health coverage should receive a Form MA 1099-HC and these forms should also be filed with the state.
What is Form 1099-HC?
Form MA 1099-HC is a tax document that shows proof of health insurance coverage for Massachusetts residents. Every resident that has health insurance should receive a Form 1099-HC from the insurance provider.
It includes information about the insurance company, basic subscriber information, basic dependent information, and months in which the covered individuals were enrolled in a minimum creditable coverage plan.
Differences between 1099-HC and federal ACA filing
Purpose of Forms
One key difference between these forms is their purpose: federal ACA filings document compliance with the ACA Employer Mandate, whereas the MA 1099-HC is used to verifies residents’ coverage under the state’s individual mandate.
Coverage Details
Another key difference difference between MA 1099-HC and federal ACA filing are the requirements to determine whether an individual has appropriate coverage for the month.
For federal ACA filing, an individual is considered covered if they had Minimum Essential Coverage (MEC) for at least one day during a calendar month. However, an individual is considered covered if they Minimum Creditable Coverage (MCC) for at least fifteen days during a calendar month.
How can I file Form MA 1099-HC?
The state of Massachusetts requires that all Forms 1099-HC are filed electronically with the Department of Revenue.
Employers may satisfy the filing requirement by uploading an XML bulk file. This is the simplest way to file multiple Forms 1099-HC. However, employers also have the option to enter each 1099-HC one at a time, or by using an Excel template.
Penalties
Failure to provide statements to covered individuals and/or submit Form 1099-HC to Massachusetts may be subject to penalties of $50 per individual per failure, not to exceed $50,000 per year.
More Information
For more information, visit the Massachusetts 1099-HC FAQ or contact pages.
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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