What Is Form 1095-B: Health Coverage?

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DEFINITION
IRS Form 1095-B: Health Coverage is a form insurance providers furnish to taxpayers during tax season.

IRS Form 1095-B: Health Coverage is a form insurance providers furnish to taxpayers during tax season. Under the Affordable Care Act of 2010, Americans are required to confirm their health insurance coverage. So individuals who receive minimum qualifying health insurance coverage receive a Form 1095-B from their insurance company that has that information.

Learn about the purpose and function of Form 1095-B, the contents of the form, how the form is used, and what to do if you don’t receive it.

Definition and Examples of Form 1095-B

IRS Form 1095-B: Health Coverage is a form insurance carriers provide to insured individuals during tax season. Form 1095-B contains information such as the health insurance coverage, effective coverage dates, individuals covered, and the coverage provider. It’s used to confirm to the IRS that the taxpayer had health insurance coverage.

You don’t need to return Form 1095-B to the IRS. Instead, keep the form for your records and confirm your health care coverage to the IRS by checking a box on your tax return.

Here’s what Form 1095-B looks like:

Purpose of Form 1095-B

The Affordable Care Act (ACA) that passed in 2010 includes an Individual Shared Responsibility Provision, also known as the Individual Mandate, which fines individuals lacking insurance coverage.

The Individual Mandate required taxpayers, with some exceptions, to demonstrate health insurance coverage for each month of the previous year. Insurance providers therefore furnish taxpayers with Form 1095-B to confirm enrollment of minimum essential coverage through either an insurance provider or a self-insured employer.

The 2019 Tax Cuts and Jobs Act eliminated the Individual Mandate penalty. Nevertheless, insurance carriers continue to provide Form 1095-B to taxpayers.

Who Uses Form 1095-B?

Health insurance carriers provide Form 1095-B to taxpayers who were enrolled in a health insurance plan through either an insurance provider or a self-insured employer.

Types of Form 1095

Aside from form 1095-B, individuals who are insured through an insurance provider or self-insured employer may receive other types of Form 1095. Here are the three main 1095 forms:

Form What It’s Used For
Form 1095-A Sent by Marketplace providers to individuals enrolled in a qualified health plan via the health insurance Marketplace
Form 1095-B Sent by health insurance providers to individuals for whom they provide minimum essential coverage
Form 1095-C Sent by health insurance providers to individuals provided health care from an employer who has 50 or more employees

Form 1095-A

The ACA mandated the creation of state-based health insurance marketplace exchanges. Marketplace carriers provide Form 1095-A to individuals covered under one of their plans. You can use this form to fill out Form 8962 for a Premium Tax Credit, which is a refundable tax credit that lowers your monthly premiums.

Form 1095-B

Health insurance carriers provide Form 1095-B to individuals they insure to confirm you received minimum essential coverage under the Affordable Care Act (ACA).

Form 1095-C

Form 1095-C is provided to taxpayers who work for an organization with 50 or more employees. It may be provided instead of or in addition to Form 1095-B.

What To Do if You Don’t Receive Form 1095-B

You can file taxes even if you did not receive form 1095-B. Other documentation can be used instead of Form 1095-B to prepare your tax return.

Documents you can use in lieu of the form include insurance cards, explanation of benefits statements from your insurer, or W-2 or payroll statements reflecting health insurance deductions. You don’t need to return Form 1095-B to the IRS.

How To Fill Out and Read Form 1095-B

Form 1095-B is completed by your insurance provider. You do not need to fill it out yourself. You also need not return the form to the IRS, but you should retain the form for your personal records.

However, you should provide the information included on Form 1095-B, or acknowledge that you have received the form, on your federal tax return. You can do this by checking the appropriate box on your Form 1040 indicating how long you were covered throughout the tax year.

Key Takeaways

  • Individuals who receive minimum qualifying health insurance coverage are provided with Form 1095-B by their insurance company.
  • Form 1095-B contains information such as the health insurance coverage, effective coverage dates, individuals covered, and the coverage provider, and is used to confirm that the taxpayer had health insurance coverage.
  • Form 1095-B is not returned to the IRS; instead, taxpayers should retain the form for their personal records.
  • Insurance cards, explanation of benefits statements from your insurer, W-2 or payroll statements reflecting health insurance deductions can be used to fill out health care information on your tax form.

Article Sources

  1. IRS. “About Form 1095-B, Health Coverage.” Accessed Dec. 22, 2021.

  2. IRS. “Individual Shared Responsibility Provision.” Accessed Dec. 22, 2021.

  3. IRS. “Instructions for Forms 1094-B and 1095-B (2021).” Accessed Dec. 22, 2021.

  4. IRS. “1095-A.” Accessed Dec. 22, 2021.

  5. IRS. “Premium Tax Credit (PTC).” Accessed Dec. 22, 2021.

  6. IRS. “2021 Form 1095-C.” Accessed Dec. 22, 2021.

  7. IRS. “Questions and Answers About Health Care Information Forms for Individuals.” Accessed Dec. 22, 2021.