Massachusetts residents who file state income taxes may receive Form 1099-HC each year. This form plays a key role in proving that you met the state’s Minimum Creditable Coverage (MCC) requirement. If you don’t submit the information from this form on your state return, you may face penalties – even if you had health insurance all year.
What Is Form 1099-HC?
Form 1099-HC is a Massachusetts-specific tax form issued by health insurance providers. It verifies that an individual had health insurance that meets the state’s minimum standards. This form includes the following:
- The member’s name, address, and subscriber number
- The insurance company’s name and Federal ID number
- The months the individual was covered during the tax year
- A checkbox indicating whether coverage met MCC
Who Receives Form 1099-HC?
You will receive Form 1099-HC if:
- You were enrolled in a Massachusetts health insurance plan for any part of the year
- Your insurance met MCC standards
- You are filing a Massachusetts state tax return (Form 1)
How Is It Different from Form 1095-A, B, or C?
While Form 1095-A, 1095-B, and 1095-C are used for federal tax filing under the Affordable Care Act (ACA), Form 1099-HC is for Massachusetts state tax compliance. The forms may look similar, but only 1099-HC includes the insurer’s Massachusetts FID number, which you need to enter on your state tax return.
Why Is This Form Required in Massachusetts?
Massachusetts was a pioneer in healthcare reform and established its own version of a health insurance mandate in 2006. Though the federal mandate penalty was eliminated in 2019, the Massachusetts mandate still exists. This means residents must prove they had insurance that met MCC or face a state tax penalty.
How to Use Form 1099-HC When Filing Taxes
- Locate the form from your health insurer (usually sent in January).
- Find the Massachusetts FID (Federal Identification Number) – often required by tax software.
- Enter the coverage months and FID into the health care section of your Massachusetts tax return (Form 1).
- Retain a copy of the form for your records.
When Will I Receive the Form?
Health insurers are required to issue Form 1099-HC by January 31 each year for the previous tax year. You may receive it by mail or electronically, depending on your insurer.
What If I Don’t Receive the Form?
If you believe you had MCC-compliant health insurance but didn’t receive Form 1099-HC:
- Contact your health insurer and request a copy
- Check your online account for a downloadable version
- If needed, file your return without it and explain your situation to the Massachusetts Department of Revenue
Penalties for Noncompliance
If you didn’t have coverage that met MCC or failed to report your coverage correctly, the Massachusetts Department of Revenue may assess a penalty of up to 50% of the cost of the lowest available Commonwealth Care premium – prorated by the number of months you were uninsured.
Final Thoughts
Massachusetts residents must continue to prove health insurance coverage each year by entering Form 1099-HC information on their state tax return. Understanding how this form works – and how it differs from federal forms – is key to staying compliant and avoiding unexpected tax penalties.
