PPACA Provisions

The Patient Protection and Affordable Care Act (PPACA) requires employers to report the value of health insurance coverage on employees' W-2 forms beginning in 2013. 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.

More information may be obtained by accessing the IRS website.