As an employer, do you offer an Individual Coverage HRA? If so, this will impact the information required on the IRS on Form 1095-C.

The Individual Coverage Health Reimbursement Arrangement (HRA) was introduced in 2020 and is an alternative to a traditional group health plan. The HRA’s primary goals are to allow employers to control costs and provide greater flexibility than a conventional plan. The employer contributes money to the HRA, and employees can use the money to pay for qualifying medical expenses, while employers can define what qualifies as a medical expense.

Commonly covered expenses often include:

  • Insurance premiums for a health plan purchased through the Marketplace
  • Premiums for dental and vision insurance
  • Out-of-pocket costs for doctor visits and treatments

How does this impact your Affordable Care Act reporting?

Line 14 of the 1095-C now has codes related to the Individual Coverage HRA. Codes 1L through 1S indicate different scenarios and offers of coverage about the ICHRA. Listing the incorrect code on a 1095-C Form puts you at risk of receiving penalty assessments from the IRS.

If you need assistance with ACA tracking and reporting, please contact us or request a demo.

Call Now Button
Privacy Settings saved!
Privacy Settings

When you visit any web site, it may store or retrieve information on your browser, mostly in the form of cookies. Control your personal Cookie Services here.


We track anonymized user information to improve our website.
  • _ga
  • _gid
  • _gat

We use Google Tag Manager to monitor our traffic and to help us AB test new features.


Decline all Services
Accept all Services