Health care reform - tax year 2007 and 1099-HC
On April 12, 2006 Governor Mitt Romney signed the Massachusetts health care reform law, which required Massachusetts residents obtain health insurance coverage effective July 1, 2007. Residents who do not show proof of health care coverage by December 31, 2007, will be subject to losing their personal state income tax exemption. The following are frequently asked questions designed to explain how the new law will affect state tax filings.
Am I now required by the state to have health insurance?
Most Massachusetts residents who are 18 years or older are required to have health insurance coverage by December 31, 2007, or they will lose their personal state income tax exemption for 2007. This amount is approximately $216 for an individual.
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How do I prove that I have obtained health insurance?
If you are enrolled in health insurance by December 31, 2007, you will receive a 1099-HC form in the mail in January from your health insurance company. The form is proof of coverage and can be used to help fill out the Schedule HC form, which is a newly required part of the Massachusetts income tax return. Individuals on a Medicare plan will not receive 1099-HC forms; they will complete the Schedule HC by checking off that they are on a Medicare plan and providing the carrier name. No further information will be needed.
What if I am on a government-subsidized health plan (Medicare/MassHealth)?
Individuals on a Medicare/MassHealth plan will not receive 1099-HC forms; they will complete the Schedule HC by checking off that they are on a Medicare plan and providing the carrier name. No further information will be needed. Those filing electronically must choose that they are insured under a government-subsidized plan first, before choosing the plan type (Medicare/MassHealth).
What information will the 1099-HC form contain?
The 1099-HC indicates:
- Name of insurance company or administrator, and its Federal Identification Number (FID) number (or, Employer Identification Number)
- Subscriber’s name, address, member number and date of birth
- Coverage effective date (true effective date if in 2007, otherwise 1/1/07)
- Coverage through date (12/31/07)
- Dependents’ names, dates of birth, member numbers and coverage data
How do I obtain a 1099-HC form?
FCHP subscribers over the age of 18 living in Massachusetts will be mailed a 1099-HC form from Fallon Community Health Plan. If you, as a subscriber, misplace or don’t receive a form, please call Customer Service at 1-800-868-5200 to request a new one.
If you are a dependent over the age of 18 and filing separately, you can use the information from the subscriber’s 1099-HC form to complete your state tax filing.
When will subscribers receive a 1099-HC form?
Fallon Community Health Plan will mail 1099-HC forms to subscribers in January for the 2007 state tax filing.
If I receive health care coverage through my employer, will the employer send me a 1099-HC form?
No. Health insurers, not employers, will send out 1099-HC forms.
If I do not receive the 1099-HC form or if I misplace the one that I did receive, can I obtain another form?
Additional copies of a subscriber’s 1099-HC form issued by FCHP can be obtained by contacting our Customer Service Department at 1-800-868-5200 (TDD/TTY: 1-877-608-7677), Monday through Friday from 8 am. to 6 p.m. Due to HIPAA privacy regulations, forms can only be requested by the subscriber. The caller may be asked certain questions to confirm that he or she is the actual subscriber. We are not able to provide the 1099-HC tax information over the phone.
Do I need more than one 1099-HC form if I am married but my spouse and I file separate tax returns?
No, you will only need one form. Health insurance companies will issue one 1099-HC per subscriber. If you need more than one form, you may make a copy of the original document.
Do I need to attach the 1099-HC form to my state income tax filing?
No. The 1099-HC form is informational and used to complete the Schedule HC form.
What is the new Schedule HC tax form?
The Schedule HC form is a newly required part of your Massachusetts income tax filing which indicates whether or not you had health insurance on December 31, 2007.
Where can I get a copy of the new Schedule HC tax form?
The Massachusetts Department of Revenue will have the Schedule HC tax form available on their Web site, www.mass.gov/dor. Forms should also be available anywhere you obtain your state income tax forms.
More information can be found on the Massachusetts Department of Revenue (DOR) Web site at www.mass.gov/dor. You may also reach the DOR by phone at 1-617-887-6367 or toll-free at 1-800-392-6089.