March 4, 2025 Client Alert

The IRS has released Notice 2025-15, which provides guidance on the Paperwork Burden Reduction Act provisions regarding how employers and insurers can satisfy the alternative manner of furnishing the Affordable Care Act Form 1095-C to employees. As background, applicable large employers (ALEs) are required to annually report information for each covered individual to the IRS and provide Forms 1095-C to employees and the IRS (statements showing proof of an offer of coverage). The Paperwork Burden Reduction Act provides that employers and insurers are no longer required to automatically furnish Form 1095-C to employees, unless the forms are requested, so long as timely notice is provided. Additional guidance was needed from the IRS on how to satisfy the notice requirement.

Notice 2025-15 provides guidance on the notice requirement, clarifying that the existing alternative manner rule that applies to furnishing statements to certain individuals (other than full-time employees) applies to full-time employees as well. Specifically, the notice must be posted on the employer website clearly and conspicuously with a statement that employees may receive a copy of their Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, upon request and must include an email address, a physical address, and a telephone number that employees can contact if they have questions. The notice must be posted by the due date for furnishing the statement, including the automatic 30-day extension. For example, for 2024 statements, the person providing minimum essential coverage must post the notice by March 3, 2025. If requested, the statement must be provided by the later of January 31 of the year following the year to which the form relates, or 30 days after request. So, for example, an employee who requests a copy of Form 1095-C in July 2025 must be furnished a copy of the 2024 Form 1095-C within 30 days but would not be entitled to receive the 2025 Form 1095-C until January 31, 2026.

Employers and insurers will want to familiarize themselves with the guidance and begin steps to establish any necessary process changes. While Notice 2025-15 provides clarity on the time and manner of the notice, it may be difficult to take advantage of the alternative method (for full-time employees) given that the legislation was issued in late 2024, and 2024 statements are due to full-time employees by March 3, 2025.