Jun 13, 2025
Compliance News Week Ending June 13, 2025
In this Article
- IRS 1095-B and 1095-C Draft Forms Released
- Tobacco Surcharge Challenges
IRS 1095-B and 1095-C Draft Forms Released
This week the IRS released draft Forms 1095-B and 1095-C, which will be used to collect data for the 2025 calendar year early in 2026.
The forms look similar to prior years' forms and thereby suggest there will not be any significant changes to ACA employer reporting for 2025. However, we will not know for sure until final forms and instructions are made available later this year.
IRS Draft Forms and Instructions
Tobacco Surcharge Challenges
Legal challenges continue to arise regarding tobacco surcharge programs, where employers apply additional charges or higher premium contributions for employees who use tobacco or nicotine. While some cases have been settled, many remain unresolved. Notably, two recent challenges have survived motions to dismiss - Bokma v. Performance Food Grp., Inc., (E.D. Va. 2025) and Mehlberg v. Compass Grp. USA, Inc., (W.D. Mo. 2025). Historically, such challenges have focused on the failure to offer or notify employees of a reasonable alternative standard. However, these two recent cases allege that employees who met the alternative standard mid-year were not granted retroactive removal of the surcharge, thereby denying them the full reward required under HIPAA. While we continue to watch how the courts rule on these challenges, employers with tobacco surcharge programs in place should carefully review their practices to ensure compliance with HIPAA wellness program rules as well as EEOC/ADA if medical testing is used to verify tobacco or nicotine use.
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