The health care law defines which employers must offer health insurance to their workers. The law refers to them as “applicable large employers,” or ALEs. A company or organization is an ALE if it has at least 50 full-time workers or full-time equivalents. A full-time worker, according to the law, is someone who works at least 30 hours a week

Every employee of an ALE who is eligible for insurance coverage should receive a 1095-C. Eligible employees who decline to participate in their employer’s health plan will still receive a 1095-C. The form identifies:

• The employee and the employer
• Which months during the year the employee was eligible for coverage
• The cost of the cheapest monthly premium the employee could have paid under the plan

If an ALE does not offer its employees insurance, the 1095-C will indicate that fact. ALEs that don’t offer coverage may be subject to financial penalties.

Form 1095-C merely describes what coverage was made available to an employee. A separate form, the 1095-B, provides details about an employee’s actual insurance coverage, including who in the worker’s family was covered. This form is sent out by the insurance provider rather than the employer.

However, some companies are “self-insured,” meaning that they pay their workers’ medical bills themselves, rather than paying premiums to an insurance company.

• In the case of self-insured employers, the employer is also the insurance provider, so it will also send out 1095-B forms
• Employers in this situation can send the “B” and “C” forms on a single combined form

Sending out 1095-C forms became mandatory starting the 2016 tax year. Employers send the forms not only to their eligible employees but also to the IRS. Employees are supposed to receive them by the end of January – so forms for 2025 would be sent in January 2026.

*Please Note: Insurers, self-insuring employers, other coverage providers, and applicable large employers now have until March 2, 2026, to provide Forms 1095-B or 1095-C to individuals, which is a 30-day extension from the original due date of Jan. 31, 2026.