ICHRA reporting requirements: what you need to know 2025

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Minimum Value (MV) A plan provides minimum value if it has an actuarial value of at least 60 percent, meaning the plan pays for at least 60 percent of covered benefits.
The potential downsides to ICHRAs depend on an employees medical needs, coverage preferences, the plans that are available to them in the individual market, the employees household income, and the size of the ICHRA allowance their employer provides.
Employers must report employee insurance information with the California Franchise Tax Board (FTB) once per year. Information should be submitted to the state using federal Forms 1094-C, 1095-C, and 1095-B. Organizations must also distribute copies to employees.
To be eligible for an ICHRA plan in California, all employees must have coverage through an individual health insurance plan. Plan options include: ON or OFF exchange coverage, Medicare Parts A and B, or Medicare Part C. There is a short enrollment window that opens and closes each year.
Key ACA Reporting Deadlines for 2025 March 3, 2025: Deadline for furnishing Form 1095-B and 1095-C to employees. Employers must provide their employees with a copy of Form 1095-B and 1095-C, which details the health coverage offered. February 28, 2025: Deadline for paper filing with the IRS.
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As per the Affordable Care Act (ACA), the 98% offer method is to docHub the following criteria in Form 1094-C. 98% of its full-time employees were provided with healthcare coverage for all months they were employed. Minimum Essential Coverage (MEC) provided for the employee, their spouse and children.
Regardless of size, all employers that provide self-insured health coverage to employees must file an annual return reporting certain information for each covered employee and provide the same information to covered individuals.
California employer reporting requirements Organizations who employ California residents must file, regardless of whether the organization is located in or out of state. Employers must report employee insurance information with the California Franchise Tax Board (FTB) once per year.

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