How do I report an employee who has waived or otherwise declined an offer of coverage?

The ACA regulations state an employer must offer minimum essential coverage to their eligible employees; however, it is not mandatory for the employee to accept the offered coverage.

In this case, the following is suggested:

  • Line 14: Use the appropriate offer of coverage code for this employee.
  • Line 15: This line is completed for months where certain codes are entered in Line 14 (1B, 1C, 1D, 1E, 1J, 1K, 1L, 1M, 1N, 1O, 1P, 1Q, 1T, or 1U).
    You will need to enter the lowest monthly cost the employee would have to pay for minimum essential coverage regardless of the plan the employee selected or if coverage was waived.
  • Line 16: This can be left blank, since there is no code for line 16 to indicate that an individual was offered coverage and either did not enroll in the coverage or waived the coverage. If applicable, codes 2F, 2G, or 2H can be used (affordability safe harbor codes).

For more information, please see the following:

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