Massachusetts Health Care Reform law requires state residents to report on their health care coverage when filing their Massachusetts income tax return. The 1099-HC form provides information to help prepare the required Schedule HC reporting form. The following Q&A provides details on the 1099-HC form and its use.
- What is a 1099-HC form?
The 1099-HC form is a Massachusetts documentation requirement that serves as proof of Minimum Creditable Coverage health insurance for Massachusetts (MA) adult residents.
- Who will receive a 1099-HC form?
MA adult subscribers who had Minimum Creditable Coverage during 2015 will receive a 1099-HC form from Harvard Pilgrim. As Medicare recipients automatically meet the requirements for qualifying health insurance, Harvard Pilgrim subscribers in Medicare Supplement and Medicare Enhance will not receive a 1099-HC form.
- What is Minimum Creditable Coverage?
As part of Massachusetts Health Care Reform, the Commonwealth Health Connector has set standards for required health care coverage. These standards, called Minimum Creditable Coverage, represent the "floor" of benefits that adult tax filers need to be considered insured and avoid tax penalties. The benefit standards pertain to several different plan provisions including covered services, prescription drug coverage, deductibles and out-of-pocket maximums.
- Will federal health care reform affect the Minimum Creditable Coverage status of my plan?
The changes stemming from federal health care reform will not affect the Minimum Creditable Coverage status of your plan.
- I didn’t receive a 1099-HC form. Instead, I received a letter saying I was not compliant with Minimum Creditable Coverage standards. If I’m enrolled in a health plan through my employer, why didn't I get a 1099-HC form?
There could be several reasons why your health care coverage was considered non-compliant with Minimum Creditable Coverage standards, and therefore you didn’t receive a 1099-HC form from Harvard Pilgrim. By checking with your employer, you can determine if a feature of your overall plan design may not have been compliant with Minimum Creditable Coverage standards.
- If I’m a Massachusetts resident but I work in New Hampshire, will I get a 1099-HC form?
Yes. If you’re a Massachusetts resident, you’ll receive a 1099-HC regardless of whether you work in Massachusetts or another state. For example, if your company is located in New Hampshire, as a Massachusetts resident, you’ll receive a 1099-HC. A coworker residing in New Hampshire will not.
- Why will I receive a 1099-HC form?
Using a Schedule HC form, Massachusetts residents need to report on their health care coverage when filing their 2015 Massachusetts income tax return. Details on the 1099-HC form provide the information needed to fill out the Schedule HC form. If you had insurance with three or more insurance carriers in 2015, you should fill out the Schedule HC-CS.
- When will I receive a 1099-HC form?
Forms will be postmarked by January 31, 2015, and will be mailed in an envelope marked “Important Tax Document Enclosed.”
- Should I attach the 1099-HC form to my Massachusetts state income tax forms?
If you are filing a hard copy (paper) income tax return, you should include the 1099-HC form in your tax return mailing. You should also keep a copy of the 1099-HC form for your records.
- If I lose the original 1099-HC form or I didn’t receive one, can I get another?
Yes. Beginning February 1, 2016, if you misplace your 1099-HC form or need an additional copy, you can easily and securely print your most recent 1099-HC using our self-service 1099-HC print tool. To ensure security, you’ll be asked to enter your name, date of birth and your subscriber ID from your Harvard Pilgrim card. You will also need to enter names and dates of birth for other covered members (spouses, dependents, etc.) you wish to include on the form.
- Will my spouse and I receive separate 1099-HC forms?
It depends. If you and your spouse are on a single Harvard Pilgrim contract meeting Minimum Creditable Coverage standards, you will receive only one 1099-HC form from Harvard Pilgrim. If you are on separate contracts with either Harvard Pilgrim or another insurance carrier's plan, you will receive a 1099-HC form for each contract you have with an insurance carrier, as long as the contract was active for at least 15 days in 2015 and compliant with Minimum Creditable Coverage standards.
- What address will the form be mailed to?
The 1099-HC form will be mailed to the subscriber address on file with Harvard Pilgrim. Please be sure that Harvard Pilgrim has your up-to-date mailing information.
- Does the 1099-HC form contain my Social Security Number (SSN)?
- What information will be printed on 1099-HC for tax year 2015?
- Name of health insurance company
- Federal tax ID for Harvard Pilgrim
- Subscriber name
- Subscriber date of birth
- Subscriber member ID
- Subscriber’s address
- Full-year coverage or monthly coverage designation
- Dependent/s name (if applicable on the plan)
- Dependent/s date of birth
- Dependent/s member ID
- Full-year coverage or monthly coverage designation for each listed subscriber and dependent
- What exactly do the full-year coverage and monthly coverage checkboxes mean?
If you and any dependents had Minimum Creditable Coverage for the full year in 2015, the “Full-year Minimum Creditable Coverage” box will be checked on the 1099-HC form. If you and any dependents didn’t have Minimum Creditable Coverage for the full year, a checkmark will appear for each month you and any dependents had Minimum Creditable Coverage for 15 days or more in that month. There is a grace period of 63 consecutive days in which you or any adult dependents can be uninsured without incurring tax penalties set by the Massachusetts Department of Revenue.
- What if the information on my 1099-HC form is incorrect?
If you obtained coverage through your employer, your employer generally has up to 60 days to notify us of enrollment changes. As a result, we may not have current enrollment information on members enrolled through employer groups. If a change affects your monthly coverage as noted on your 1099-HC form, we will send you a corrected form.
- Does my tax advisor need the actual 1099-HC form in order to complete Schedule HC? What information on the Schedule HC will come from the 1099-HC?
If a tax advisor is preparing your Massachusetts income tax return, he or she should be provided with the 1099-HC form along with your other records. In any event, your tax preparer will need the following information from the 1099-HC form:
- Name of insurance company
- Federal tax ID number for insurance company
- Subscriber ID number
As noted earlier, if you are filing a hard copy (paper) return, the 1099-HC form should be included with your tax return mailing.
- When and where can I get a copy of the Schedule HC tax form?
The Schedule HC should be included in the resident tax form package mailed to you. If you need an additional copy, the Massachusetts Department of Revenue Web site contains this schedule and instructions on how to complete the form. Alternatively, you can consult with your tax professional.
- Whom should I call if I have questions about filing Schedule HC?
If you have any questions on your responsibility to complete and file Schedule HC with your state income taxes, please refer to the Massachusetts Department of Revenue’s Web site or contact your tax advisor.
- Whom should I contact at Harvard Pilgrim if I have questions about my 1099-HC form?
If you have any questions about your 1099-HC, please call the Member Services department at (888) 333-4742. For TTY service, please call 711.