MNsure says most tax forms have been sent out

MNsure officials said Monday they have sent 90 percent of the forms that enrollees will need to complete their 2016 taxes, and pledged the rest of the documents should be in the mail by week's end.

It's a change from the past two years, when MNsure was tardy with tens of thousands of tax forms after failing to hit the Feb. 1 deadline.

Minnesotans who buy health insurance through MNsure qualify for federal tax credits that discount premium costs. At tax time, buyers need paperwork from MNsure to reconcile the tax credits they used during the previous year with the subsidies they actually qualified for based on income reported to the Internal Revenue Service.

Some filers might owe money as a result, while others might see a further reduction in their tax tab — but either way, they need the forms.

"Last year, we had a tough time. ... We fell short on our promise," said Allison O'Toole, the MNsure chief executive. "We've made the necessary improvements to provide better service."

O'Toole added: "By the end of the week, they'll all be out."

Minnesota launched the MNsure exchange for 2014 to implement the federal Affordable Care Act (ACA), which requires all Americans to have health insurance or pay a tax penalty.

While it's not clear exactly what changes are coming, it's possible that this will be the last year for the 1095-A tax forms that MNsure is sending out this week, said Chris Wittich, an accountant with Boyum & Barenscheer.

The health law also requires health insurers, employers and governments to send related tax forms called 1095-B and 1095-C to people with other types of coverage such as employer-sponsored health plans and public programs.

Taken together, the tax forms create a reporting mechanism that lets the government police whether individuals have coverage, and whether employers are offering it when required by the ACA — a requirement often called the "employer mandate."

"If they do get through a repeal, it might be the last year for 1095-As, and the 1095-Bs and Cs — I think that's a distinct possibility," Wittich said. "And, alternately, it could be the last year for the tax credits for getting insurance, and the tax penalty for not having insurance."

The average tax credit value for MNsure enrollees in 2016 was $210, O'Toole said. The value has tripled for 2017, she said, to match premium spikes in the individual market, where people buy health insurance for themselves outside of employer plans and government programs.

Twitter: @chrissnowbeck