Row 1: The first series of codes relate to offers of coverage, and indicate whether coverage is offered to the employee, the employee's spouse and dependents during each month in the year and the type of coverage offered. Code 1A, for example, identifies employees that receive a qualified offer, which is minimum essential coverage (MEC) providing minimum value with employee contribution for self-only coverage equal to or less than 9.5% of the mainland single federal poverty line, as well as MEC offered to spouse and dependent(s). Other codes denote whether MEC providing minimum value was offered to the employee only; the employee and dependent(s); the employee and spouse, or to all. Additional codes identify whether MEC offered did not provide minimum value; whether coverage was offered to an employee who was not a full-time employee, or whether a full-time employee was not offered coverage.
Row 2: Provides for monthly reporting of the employee's share of the lowest-cost monthly premium for self-only minimum value coverage.
Row 3: Used to report whether the employer is exempt from the employer shared responsibility mandate for a particular month because the employer qualified for safe harbor relief provided by the IRS in regulations. Examples of "safe harbor" codes include:
* Not employed during the month
* Not a full-time employee
* Employee enrolled in coverage offered
* Section 4980H(b) limited non-assessment period
* Affordability Form W-2 safe harbor
* Affordability federal poverty line safe harbor
* Affordability rate-of-pay safe harbor
Section 6055 requires every health insurance issuer, sponsor of a self-insured health plan, and other entities that provide minimum essential coverage to file annual returns reporting each covered individual and dependents and their respective months of coverage. Form 1095-B is to be used to comply with Section 6055 and goes to employees by January 31st of the year following the coverage. Form 1094-B is to be used to transmit these returns to the IRS.