What form is used for individuals whose insurance comes from a source other than the Marketplace and works for a smaller sized company?

The correct option indicates that Form 1095-B is used for individuals whose health insurance comes from sources other than the Health Insurance Marketplace, particularly for those employed by smaller-sized companies. Form 1095-B is designed to report information regarding health coverage provided by health insurance issuers or insurers. It includes details about the type of coverage held, confirming that the individual met the requirement for minimum essential coverage.

Smaller companies, often with fewer than 50 employees, are not mandated to provide health insurance under the Affordable Care Act, but if they do, they report this information on a 1095-B. This form can assist individuals in demonstrating their coverage to avoid any penalties under the ACA requirements.

In contrast, Form 1095-A is specifically related to health insurance obtained through the Marketplace, while Form 1095-C is used by larger employers (those with 50 or more full-time employees) to report health insurance coverage offered to their employees. Thus, both Form 1095-A and Form 1095-C are not applicable for smaller businesses. The use of Form 1095-B for smaller employers adequately captures the necessary reporting of coverage, making it the appropriate choice in this context.