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W-2 Reporting of Total Cost of Health Coverage


Employers who issued 250 or more Forms W-2 in 2012 are required to report on their employees’ 2013 Forms W-2 the total cost of health care coverage.  This is the second year that this Affordable Care Act provision has been in place.

The intention is to provide employees an opportunity to see the true cost of their health care coverage when provided through their employer.

The amount entered on the Forms W-2 is for information purposes only and is not taxable.

Only employees who would otherwise receive a Form W-2 under the normal course of business need to receive a W-2 with the total cost of health insurance shown in box 12a.

Amounts reportable are on an employee-by-employee and calendar-year basis.  If the cost of coverage changes during the year for an employee, the reportable cost must reflect the change in cost (e.g., an employee has a baby midyear, so changes tiers to family coverage from employee/spouse coverage, thus increasing their premium rate).  Or, if an employee commences, changes, or terminates coverage during the year, the reportable cost must consider the change in coverage.

Please reach out to your Creative Benefits account manager if you have questions on this ACA mandate, or contact Robin Norgaard, our Certified Health Care Reform Specialist, at 866-306-0200.