HealthPartners + ACAPrime - ACA Compliance
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Simplified ACA Compliance for Level-Funded Plans

✓ Included with Your HealthPartners Plan

Complete ACA compliance support at no additional cost

Through its partnership with HealthPartners, ACAPrime handles two key ACA obligations for employers with level-funded health plans:

📋 1094-B / 1095-B Filing

Annual production and IRS filings for covered individuals

💰 PCORI Fee Calculation

Completed Form 720 preparation and fee calculation

📅 Annual ACA Compliance Timeline

JANUARY
Submit enrollment data to ACAPrime
FEB-MARCH
Forms ready for download & review
MARCH 2
Website notice deadline (if using Alternative Manner)
MARCH 31
IRS filing deadline (ACAPrime handles)
JUNE 30
PCORI Form 720 ready
JULY 31
PCORI filing deadline (employer files)

Annual 1094-B & 1095-B ACA Reporting

Under the Affordable Care Act (ACA), small group employers that sponsor level-funded health plans are required to electronically file forms 1094-B (employer level transmittal) and 1095-B (for each covered individual) with the IRS each year. These filings ensure compliance with IRS Section 6055, which requires reporting of individuals who had Minimum Essential Coverage (MEC) during the year. Form 1095-B should be made available to recipients upon request.

Through HealthPartners' partnership with ACAPrime, the Forms 1094-B and 1095-B production and filing process is handled for applicable employers that have opted in. ACAPrime files the required forms with the IRS and provides employers with access to forms for download.

Forms Filed on Your Behalf

  • Form 1094-B: Transmittal of Health Coverage Information Returns. This form is filed in conjunction with employers' forms 1095-B and acts like a cover sheet for the IRS.
  • Form 1095-B: Health Coverage statements for individuals enrolled in their employer's level-funded health plan.

These forms serve two purposes:

  1. IRS Compliance: To demonstrate that individuals had minimum essential coverage.
  2. Covered Individual Information: To provide individuals with documentation of their coverage. The 1095-B form is informational only and is not required to be filed with individual federal income tax returns.

Accessing Forms

  • Employers will receive a notification from ACAPrime once their forms are ready.
  • Forms 1094-B and 1095-B will be available for secure download and review.
  • Employers must then make Forms 1095-B available upon request to any applicable recipients.

Timeline & Deadlines

  • February–March: Employers will be notified by ACAPrime once forms are available.
  • IRS Filing Deadline: March 31 of each year for electronic filing.
Requirement Responsible Party Deadline
IRS Filing (1094-B & 1095-B) ACAPrime on behalf of employers March 31
State Filings (where required) ACAPrime Varies by state
Furnishing Forms 1095-B upon request Employer The latter of March 2 of the given year or within 30 days of a given request
Posting "Alternative Manner" Notice Employer March 2 each year
Retaining Notice on Website Employer Through October 15 each year

Form Distribution Options for Employers

Choose Your Distribution Method:

Option 1: Traditional Distribution

Mail or email forms directly to all employees by March 2

Option 2: Alternative Manner (Upon Request)

Post a website notice by March 2 and provide forms only when requested

Standard Distribution Requirements (Option 1)

Employers must provide a process for covered individuals (employees, former employees, and dependents) to request copies of their ACA forms.

  • Employers may mail forms out, physically distribute forms, or, upon recipient opt-in, email forms.
  • Forms must be distributed by March 2.

Alternative Manner - Providing Forms Upon Request (Option 2)

Under this method, ALEs and small employers may disregard the standard mailing requirement and instead provide Forms 1095-B only upon request, provided that the following conditions are met:

Click to view detailed Alternative Manner requirements →
  1. Website Posting
    • By March 2 of the given year, employers must post a clear and conspicuous notice on their website.
    • The notice must be reasonably accessible to all employees, written in plain language, and use font size/graphics that clearly indicate it pertains to ACA reporting forms.
  2. Notice Content
    • The website notice must include:
      • An email address for requests.
      • A physical address where written requests can be mailed.
      • A telephone number for questions and instructions on how to request a copy of Form 1095-B.
  3. Retention Period
    • The notice must remain posted at least through October 15 (or the next business day if October 15 falls on a weekend/holiday).
  4. Furnishing the Form
    • Upon request, employers must provide Form 1095-B within 30 days of the request OR by March 2 of the year following the applicable calendar year, whichever is later.
    • Forms may be provided electronically if the employee consents to electronic delivery.
  5. Safe Harbor Example
    As a best practice, ALEs and small employers may rely on the "safe harbor" outlined in IRS 2022 final regulations by:
    • Including a statement or link on their main website page with the words "Tax Information."
    • If using a link, directing employees to a secondary page titled "IMPORTANT HEALTH COVERAGE TAX DOCUMENTS" (in capital letters).
    • Providing clear instructions on how employees may request Form 1095-B, along with the required contact information (email, mailing address, and phone number).

💡 Note: The Alternative Manner is optional and can reduce administrative costs, but requires careful compliance with website posting and retention rules. Employers may continue to rely on traditional mailing or electronic disclosure (with consent) to distribute Forms 1095-B.

State Filing Requirements

Certain states have established their own ACA filing obligations, in addition to federal requirements. ACAPrime handles electronic filing for the following states:

  • California (CA)
  • District of Columbia (DC)
  • New Jersey (NJ)
  • Massachusetts (MA)
  • Rhode Island (RI)

Employers are responsible for ensuring that any additional distribution obligations are met. For details, see: ACAPrime State ACA Filing.

Printing & Mailing Forms

Employers may opt to have ACAPrime handle form printing and mailing.

  • Cost: $100 for up to 50 forms.
  • Additional charges may apply for larger volumes.
  • Service can be requested at the time forms are released for download.

🏢 Applicable Large Employers (ALEs) - We Handle C Forms

✓ ACAPrime Specializes in 1094-C & 1095-C Filings

If your company averaged 50 or more full-time employees (including full-time equivalents) in the previous calendar year, you're an Applicable Large Employer (ALE) subject to additional ACA reporting requirements under IRS Section 6056.

ACAPrime handles the complete C form filing process — from data collection and form production to IRS electronic filing and employee distribution.

What Makes C Forms Different?

Forms 1094-C and 1095-C are more complex than B forms because they report:

  • Offer of coverage details for each employee
  • Affordability calculations and safe harbor codes
  • Monthly employment status and hours worked
  • Plan details including employee premium contributions

These filings require detailed payroll and benefits data that goes beyond basic enrollment information.

Our Comprehensive C Form Services Include:

  • ✓ Data collection and validation from your payroll and benefits systems
  • ✓ Complete form production for all employees (including those not enrolled)
  • ✓ IRS electronic filing by the March 31 deadline
  • ✓ State filing for applicable jurisdictions (CA, DC, NJ, MA, RI)
  • ✓ Employee distribution support and alternative manner compliance
  • ✓ Correction filings if needed
  • ✓ Multi-year support for amended returns

⚠️ Important: HealthPartners Does NOT File C Forms

HealthPartners' standard partnership covers B form filings only. If you're an ALE, you must arrange C form filing separately through ACAPrime or another provider. Missing ALE filing requirements can result in significant IRS penalties.

Not sure if you're an ALE? We can help you determine your status. For more information, see: IRS ALE Determination Guide

Frequently Asked Questions

❓ Do employees still need Form 1095-B or 1095-C to file their federal taxes?

No. Individuals do not need these forms to file federal income taxes. However, some may request the form for personal records or for state filing purposes.

❓ What happens if we miss the March 31 IRS deadline?

Late or non-filing may result in IRS penalties. ACAPrime ensures timely submission when employers comply with data submission deadlines. That said, if you do miss a filing deadline, it is truly better late than never. Fines ratchet up the later they are filed.

❓ Does ACAPrime handle both federal and state filings?

Yes. Federal filings are included, and state filings for CA, DC, NJ, MA, and RI are handled automatically.

Action Items for Employers

  • ✓ Ensure employee communication includes instructions on how to request a 1095-B or 1095-C
  • ✓ Review forms once notified and confirm accuracy
  • ✓ Be prepared to address state-specific obligations, if applicable
  • ✓ Determine if you qualify as an ALE and contact ACAPrime to arrange for 1094-C/1095-C filings if required
  • ✓ ALEs and small employers considering the Alternative Manner should prepare website notices before the annual March 2 deadline

PCORI Fee Calculation & Form 720 Preparation

The ACA imposes a fee on plan sponsors of applicable level-funded health plans to help fund the Patient-Centered Outcomes Research Institute (PCORI). The institute's research helps patients, clinicians, and policymakers make better-informed healthcare decisions to increase clinical effectiveness.

The PCORI fee is required to be reported to the Internal Revenue Service (IRS) only once a year, on the second quarter Form 720. The fee is based on the average number of lives covered under the policy for the plan year. Annually, plan sponsors are required to report their covered lives data to the IRS and pay any applicable PCORI fees.

ACAPrime PCORI Services

✓ Included at no additional cost: ACAPrime calculates your PCORI fee and prepares Form 720 annually using enrollment data already gathered as part of the ACA reporting process.

Timing and Deadlines

The PCORI fee payment and Form 720 are due on July 31 of the year following the last day of the applicable plan year. Starting in late spring, ACAPrime will begin reviewing enrollment data gathered as part of ACA reporting. Using the available data and calculation methods prescribed by the IRS, ACAPrime will calculate the appropriate PCORI fee for the plan year in question. After the calculations are prepared, ACAPrime's team finalizes the Form 720.

The final calculation and Form 720 generally are completed by June 30th, provided all necessary data has been provided in a timely manner. The completed form will be provided in PDF format via email. Both the mailing of the form and fee payment are to be completed by the employer and must be sent to the IRS by July 31.

Frequently Asked Questions

❓ Won't an employer's health insurance carrier complete the PCORI fee filing and payment on the employer's behalf?

Health insurance carriers administering employer fully-insured plans file the Form 720 and pay any applicable PCORI fees. However, for level-funded plans, as the plan sponsor, the employer is responsible for the PCORI fee and filing.

❓ Can ACAPrime file the Form 720 and pay the PCORI fee on the employer's behalf?

As part of ACAPrime's services, only the preparation of the form and the calculation of the fee is completed. The filing of the form and payment of any required PCORI fees are the responsibility of the employer / plan sponsor.

Action Items for Employers

  • ✓ Provide company's basic information level-funded enrollee data to ACAPrime as part of ACA reporting in January
  • ✓ Review Form 720 for accuracy once the completed version is available
  • ✓ File Form 720 with the IRS by July 31
  • ✓ Pay any applicable PCORI fees to the IRS by July 31
  • ✓ Retain for your records the Form 720, plus proof of filing and payment

Contact Information

ACAPrime is available to help with any questions or concerns about ACA reporting, including Forms 1095-B, PCORI filing, or whether your company must file Forms 1095-C.

Get Help with Your ACA Compliance

General Support (ACA and PCORI filings):
[email protected]

Disclaimer

This webpage is for informational purposes only and does not constitute legal or tax advice. Employers should consult their own legal or tax advisors regarding ACA Forms 1095-B and PCORI filing obligations.

Note: All guidance also applies to self-insured health plans and ICHRAs as well - but this guidance was created for those employers with level-funded health plans.

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