Massachusetts State Reporting on the MA 1099-HC

Background:

The State of Massachusetts has an individual health insurance mandate that requires adult residents over the age of 18 to have health coverage that covers key health benefits including preventive health care. These standards protect individuals from severe financial losses as a result of serious illness or injury.  

Massachusetts residents are required to receive Form 1099-HC annually to provide proof of health insurance coverage.  While it is the employers responsibility to provide the form to employees regardless of plan funding, carriers generally provide the form to employees if the medical plan is fully insured. 

Check with your carrier to determine if they are mailing the forms to the employee and filing with the state of Massachusetts, or if the employer will need ACA Track to perform this service on their behalf.

Form 1099-HC shows the months that the employees and any dependents had Minimum Creditable Coverage (MCC) in the reporting year. They will use this form to complete their state income tax returns and determine if they owe a penalty for not having MCC.

How is the 1095-C/B different from the 1099-HC?

The forms are similar but different. Massachusetts requires the 1099-HC form include the employees subscriber number (not their SSN), as well as months the employee and their dependents were offered Minimum Creditable Coverage (MCC). It is required of all employers that offer coverage to employees, not just those that are considered Applicable Large Employers (ALE's).

What is the deadline to file the 1099-HC?

The deadline to distribute copies of the 1099-HC to employees is January 31st following the reporting year. 

The deadline to file the MA 1099-HC with the state is also January 31st following the reporting year. MA Form 1099-HC must be filed electronically, regardless of how many returns. Paper filing is not permitted.

What are the penalties for failure to file?

Employers who fail to supply employees with form 1099-HC or fail to report to the state of MA are subject to $50 penalty per individual, with a maximum of $50,000.

Can ACA Track provide the MA 1099-HC to employees and file with the State of Massachusetts?

Yes, effective August 1st, 2024, ACA Track can support the printing and mailing of the 1099-HC, as well as electronic filing with the state.

What is the cost to elect MA 1099-HC services?

Please contact your Reporting Specialist for pricing details.

If I already have a contract with ACA Track, is an addendum required to complete the filing?

Yes, if you already have an existing contract and a state reporting addendum, you'll need to complete an addendum to add Massachusetts reporting since it involves a different data set, deadlines and the printing and mailing of HC 1099 Forms. Additionally, the new addendum will require an Health Care Reform Attestation that confirms to ACA Track that your organization offer Minimum Creditable Coverage (MCC).

What information is required for ACA Track to complete my MA 1099 HC Filing?

Clients will need to submit data in this template by December 31st.

Need more information on the MA 1099-HC filing? Click here. 

Have additional questions? Please reach out to your designated ACA Track Reporting Specialist.

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