University of Illinois System

Affordable Care Act (ACA)

Health Plan Options

The Affordable Care Act (ACA) requires large employers like the University of Illinois to offer health insurance coverage to substantially all (at least 95%) of their full-time employees, which for this purpose is defined as averaging 30 or more hours per week. Additionally, ACA requires the University to complete complex annual IRS reporting. These requirements make it critically important for the University to be able to track hours for all employees. See FAQs for Tracking and Measuring Work Hours.

ACA also requires nearly all individuals with income above the tax-filing threshold to obtain health coverage.

Insurance Marketplace Notice

All employees, including student employees, receive notification that the state Health Insurance Marketplace is available. See Marketplace Notice FAQs for Faculty and Staff and Student Employees. View the Insurance Marketplace Notice

Additional Resources

Tax Forms

Benefits-eligible employees will see health insurance value information on their W-2. Full-time employees will also receive a 1095-C form for tax purposes. See tax statement information for more about these forms.   

ACA & W-2

The Affordable Care Act (ACA) requires employers to report the value of health insurance coverage on employees' W-2 forms. The purpose of the value of health coverage, as stated by the IRS, is to provide employees useful and comparable consumer information on the cost of health care coverage. This amount is not taxable and does not include the value of dental or life coverage.

The value of health insurance was reported by the Group Insurance Division to the Comptroller, SURS, and all universities and appears in box 12 of the W-2 form with the code 'DD'. The amount reported includes any pay period from January through December in which the employee had income that was reported on a state agency or state university W-2.

ACA & 1095-C

The Affordable Care Act (ACA) requires employers to offer health insurance coverage to full-time employees and their child dependents. Employers must send an annual statement (on paper or electronically) to eligible employees describing the health insurance coverage that was offered to them. The IRS Form 1095-C serves as that statement.

IRS Regulations provide the opportunity to consent to receiving the 1095-C electronically in the same manner that you consent and receive your W-2 electronically each year.

Who to Contact with Questions

If you are unsure whether you are eligible for health insurance coverage based on your University employment, please contact your supervisor or your unit's hiring manager.

If you have questions about your employment status, please contact your university HR office.

If you have questions about your health insurance or medical coverage, please contact University Payroll & Benefits.