Employers subject to the Affordable Care Act (ACA) are required to file Form 1095-C to report the health insurance coverage they offered to full-time employees. One of the most important (and often confusing) parts of the form is Line 14, where employers indicate what type of health coverage, if any, was offered each month of the year.
The IRS uses this information to determine whether an employer is meeting the Employer Shared Responsibility Provisions and whether an employee might be eligible for a Premium Tax Credit.
This article explains how to read and use the Line 14 codes, also known as “Offer of Coverage” indicator codes.
What Is Line 14 on Form 1095-C?
Line 14 asks: “What type of health coverage did you offer this employee for this month?”
You must enter a two-digit code for each month, or just once if the offer was the same all year. These codes describe:
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The type of offer made
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To whom it was made (employee, spouse, dependents)
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Whether it met minimum essential coverage (MEC) and affordability standards
Line 14 Offer of Coverage Codes
Here’s a breakdown of the most commonly used codes (note: this applies to Tax Year 2023 and beyond unless updated by the IRS):
“1A” – Qualifying Offer
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MEC providing minimum value offered to employee, spouse, and dependents
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Employee contribution for self-only coverage ≤ 9.12% of federal poverty line (in 2023)
→ Simplified reporting allowed
“1B” – MEC offering minimum value to employee only
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Not offered to spouse or dependents
“1C” – MEC offering minimum value to employee and dependents
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Not offered to spouse
“1D” – MEC offering minimum value to employee and spouse
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Not offered to dependents
“1E” – MEC offering minimum value to employee, spouse, and dependents
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The most comprehensive “yes, we offered full coverage” code
“1F” – MEC not providing minimum value
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Coverage was offered but did not meet minimum value standards
“1G” – Offer to individuals not full-time for any month
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Used when reporting coverage to part-time employees or COBRA recipients
“1H” – No offer of coverage
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Use if no coverage was offered at all during the month
“1L to 1S” – ICHRA-Related Codes
These apply if the employer offered an Individual Coverage Health Reimbursement Arrangement (ICHRA). The specific code depends on who was eligible and whether dependents or spouses were included.
Example:
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1L – ICHRA offered to employee only, with affordability determined by employee’s primary residence zip code
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1M – ICHRA offered to employee and dependents (not spouse)
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1R – ICHRA offered but not affordable
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1S – ICHRA offered to non-full-time employee (no affordability required)