Understanding Form 1095-B and ICHRA: A Guide for Employers (2025 Edition)
Small employers and benefits brokers face a critical challenge: offering competitive health benefits while managing escalating costs. Forward-thinking businesses are turning to Individual Coverage Health Reimbursement Arrangements (ICHRA) as a game-changing solution, gaining the flexibility to offer personalized benefits while controlling expenses. But implementing an ICHRA brings new reporting responsibilities – in particular, Form 1095-B filings. This guide breaks down exactly what you need to know about both ICHRA and Form 1095-B to confidently modernize your benefits offering.
What is the Form 1095-B?
Small employers who offer self-funded health plans must report this coverage annually to the IRS using Form 1095-B. This is because self-funded plans qualify as minimum essential coverage (MEC) under the Affordable Care Act, and employers who provide MEC through self-funded arrangements are responsible for reporting – not an insurance company. An ICHRA is considered a type of self-funded health plan. If you’re an employer offering an ICHRA, you must file Form 1095-B.
The form includes:
- Information about the covered individual
- Details about the employer or coverage provider
- Insurance company information
- List of all covered individuals
- Fill in “G” to indicate that you offered an ICHRA to your employees
Filing Deadlines for the Form 1095-B
Employers must meet two key deadlines:
- Provide Forms 1095-B to employees by March 2, 2025
- File Forms 1095-B and the 1094-B Transmittal with the IRS by February 28, 2025 if filing by paper, or March 31, 2025 if filing electronically
How to File the Form 1095-B
Employers have three main options for filing Form 1095-B:
- Download and mail paper forms from the IRS website (irs.gov)
- Use a third-party e-filing service like Track 1099
- File through your payroll provider if they offer 1095-B support
Note that electronic filing is required if you're submitting 250 or more forms.
Employee Instructions: What to do with the Form 1095-B
Employees should review the form to verify that their personal information, coverage details, and months of health insurance enrollment are accurate. They should keep the form with their other tax records. Other than this, no other action is typically required.
If employees notice any errors on their Form 1095, they should contact their employer or insurance provider promptly to request corrections.
Venture’s ICHRA Compliance Support
Have additional questions about Form 1095-B reporting or implementing an ICHRA? Venture’s team of benefits experts is here to help guide you through every step of the process and ensure your program's success. Don’t hesitate to get in touch!
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