How to File Form 1095-B Electronically

Form 1095-B, Health Coverage, is an information return used by providers like insurance companies and certain employers to report that individuals have minimum essential health coverage under the Affordable Care Act (ACA). This form is sent to both the IRS and the covered individuals to verify health coverage. This guide focuses on the requirements and procedures for filing Form 1095-B electronically with the IRS.

Determining Your Electronic Filing Requirement

The obligation to file Form 1095-B rests with providers of minimum essential coverage. This group includes health insurance issuers, sponsors of self-insured group health plans, and government agencies that provide coverage under programs like Medicare or Medicaid. For example, a small business offering a self-insured health plan must report coverage for its employees on this form.

The IRS mandates electronic filing for any entity required to file 10 or more information returns in aggregate during a calendar year. This threshold is not limited to Form 1095-B and includes a wide range of other forms, such as the W-2 and 1099 series. For instance, if an employer files seven W-2s and three Forms 1095-B, they must file all 10 returns electronically.

Preparation for Electronic Filing via the AIR System

Filers must first gain access to the IRS’s Affordable Care Act Information Returns (AIR) system. This requires a specific credential known as a Transmitter Control Code (TCC), which is a unique, five-character alphanumeric code that identifies an authorized filer. To obtain a TCC, a responsible party for the entity must complete the online Information Returns (IR) Application for TCC.

The application requires business details like the legal name, Employer Identification Number (EIN), and contact information. Applicants must also create an ID.me account to verify their identity to access the IRS e-Services tools where the TCC application is hosted. Because processing times for a TCC can vary, it is best to apply well in advance of filing deadlines.

Each Form 1095-B requires specific details that are transmitted to the IRS using Form 1094-B, which serves as a summary. The required information includes:

• The filer’s name and EIN
• The name of the responsible individual (primary insured)
• The name of each covered person
• Each covered person’s Social Security Number (SSN) or date of birth if an SSN is unavailable
• The months each person had coverage

For electronic submission, this data must be compiled into a specific Extensible Markup Language (XML) file format. Due to the technical complexity, most filers use specialized, IRS-approved third-party software to correctly format their data into the required manifest and data files for upload.

The Electronic Filing Process Step-by-Step

To file, navigate to the IRS’s AIR Program User Interface (UI) Channel portal and log in using the credentials associated with your TCC application, which may require ID.me verification. Once logged in, select your organization and proceed to the upload section.

The system requires two files for a complete submission: the Form Data File, containing all 1095-B and 1094-B information, and the Manifest File, which describes the data file’s contents. After uploading these two XML files, the AIR system will issue a unique Receipt ID.

This Receipt ID confirms that the IRS has received the submission and is used to track its processing status. You should record this ID for your records. Filers can use this ID within the AIR portal to check the transmission status, which will update to “Accepted,” “Accepted with Errors,” or “Rejected.” An “Accepted” status indicates a successful filing, while the other statuses signal that further action is required.

Post-Filing Responsibilities

A filer’s responsibilities include monitoring the submission status and taking corrective action if needed. If a transmission returns as “Accepted with Errors” or “Rejected,” the filer must download the error data file from the AIR system. This file identifies the specific records that contain mistakes.

After correcting the errors in the source data, a new, corrected XML file must be generated and submitted through the AIR system using the same upload procedure. The IRS provides specific guidance on how to format corrected returns to distinguish them from original submissions. Addressing these errors promptly is necessary for compliance.

In addition to the IRS filing, providers must furnish a copy of Form 1095-B to the responsible individual named on the form. This statement must be delivered by the annual deadline, which is early in the year following the coverage year. The form can be sent via mail or furnished electronically if the recipient has affirmatively consented to receive it in that format.