Health care reform - tax year 2008 and 2009 and 1099-HC
Massachusetts health care reform legislation requires that all state residents have health care coverage. Individuals who have a lapse in coverage greater than 63 consecutive calendar days in 2008 will be subject to a penalty for each month of non-compliant coverage during the year. For tax year 2009, individuals must meet minimum creditable coverage guidelines.
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 without a lapse in coverage of more than 63 consecutive days or they will be subject to a penalty for each month of non-compliance. The penalty for 2008 is approximately $76 per month or $912 per year for individuals above 300% of the federal poverty level. The penalty for 2009 is $89 a month or $1068 per year.
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What if I had coverage for non-consecutive months?
Gaps in health care coverage may exist without a penalty provided they are no greater than 63 consecutive days, according to legislation. If you are enrolled in health insurance anytime during the year, you will receive a 1099-HC form indicating full-year coverage or, if there are gaps in coverage, showing each month you had health insurance for at least 15 days or greater.
How do I prove that I have obtained health insurance?
If you are enrolled in health insurance anytime during the year, 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 required part of the Massachusetts income tax return.
What if I work in Massachusetts but have health insurance outside of the state?
If the subscriber or any of the subscriber’s covered dependents live in Massachusetts, FCHP will send the subscriber a 1099-HC form. Dependents can use the subscriber form to obtain information needed to complete their Massachusetts Schedule HC filing.
What if I am a dependent?
FCHP will send each subscriber who lives in Massachusetts, or has any insured dependent living in Massachusetts and has health coverage, a 1099-HC form. Dependents can use the subscriber form to obtain information needed to complete their Massachusetts Schedule HC filing.
What if I am on a government-subsidized health plan (Medicare/MassHealth/Commonwealth Care)?
Individuals on a Medicare/MassHealth/Commonwealth Care plan at any time during 2008 will receive 1099-HC forms from the state showing proof of coverage. The form is proof of coverage and can be used to help fill out the Schedule HC form, which is a required part of the Massachusetts income tax return.
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
- Whether an individual had full-year coverage or, if not, the number of months covered (a month of coverage is any month in which you had 15 or greater days of coverage)
- 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 by January 31. 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.
Why did I receive more than one 1099-HC form?
If you have coverage from different health care providers during 2008, you will receive a 1099-HC form from each health insurance provider from which you obtained coverage. You'll need to complete a separate Schedule HC for each 1099-HC form that you receive.
When will subscribers receive a 1099-HC form?
Fallon Community Health Plan will mail 1099-HC forms to subscribers by January 31 for the 2008 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 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 required part of your Massachusetts income tax filing which indicates whether or not you had health insurance at any time during 2008.
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 or through your tax preparer.
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.