Dive Brief:
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For employers who self-insure their healthcare coverage, participating employees might balk at giving up social security numbers (SSNs) for themselves, their spouses and their dependents. That could be problematic, as employers are required to report that data on Form 1095-C, which is part of the Affordable Care Act's many compliance documents, according to SHRM.
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While fully insured employers can avoid gathering SSN data because it's an insurance company's responsibility, that's not the case for self-insured employers. SHRM reports that in its July 29 proposed rule, the Internal Revenue Service offers a "three tries" approach that employers can follow to show they acted responsibly to gather required social security numbers.
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According to SHRM, a self-insured employer will be treated as acting in a responsible manner by the IRS if it makes: An initial SSN solicitation at the time the account is opened; A second solicitation within 75 days after the initial SSN solicitation, a third solicitation by Dec. 31 of the year following the initial request.
Dive Insight:
Experts in the SHRM article explain that social security numbers on the 1095-C form are used to gauge compliance with the ACA's employer and individual mandates. Those experts add that if after the three tries allowed by the IRS proposal an employer comes up short in gathering the needed SSNs, then the employer can use birthdays instead. But the three tries must be attempted and documented; there are no shortcuts.
Clearly, HR leaders face a slew of ACA compliance deadlines, and the 1095-C issue is one among many. Based on this specific situation, the tried and true strategy is to follow the government's regulations and proposals and provide clear documentation whenever possible. Often, that means starting the documentation process early.