Health Insurance Mandates by State

Just when you thought ACA reporting for employers couldn’t get more complex… some states are now requiring ACA-like employer reporting at the state level as well.

What’s the Situation?

With the individual mandate effectively being moot on the federal level as of 2019, some states are now creating their own type of individual mandate, requiring individuals to have health insurance or risk a penalty – effectively re-instating the individual mandate within their state. As a result, some (or all) employers will be required to do ACA-like state reporting and filing to prove that their employee was insured (or not). The expectation is that even if the federal individual mandate is modified or permanently eliminated, these states will uphold their own requirements.

For the 2020 tax year, the following “states” require an employer filing: New Jersey, the District of Columbia, California, and Rhode Island. Other states have passed legislation but do not require employer reporting.

Understanding