How do I report waived or declined 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.

If an employee has waived coverage, 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:

• IRS Form 1094-C / 1095-C Instructions
• Questions and Answers about information Reporting by Employers on Form 1094-C and 1095-C