Enter the total number of days covered by health insurance over a 3-year period and 1095 into the calculator to determine the compliance percentage.

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## 1095 Rule Formula

The following formula is used to calculate the 1095 Rule compliance.

C = (D / 1095) * 100

Variables:

- C is the compliance percentage (%)
- D is the total number of days covered by health insurance over a 3-year period (days)

To calculate the 1095 Rule compliance, divide the total number of days covered by health insurance over a 3-year period by 1095. Multiply the result by 100 to get the compliance percentage. If the compliance percentage is 100% or more, the individual is in compliance with the 1095 Rule. If the compliance percentage is less than 100%, the individual may face a penalty under the Affordable Care Act.

## What is a 1095 Rule?

The 1095 Rule refers to the requirement under the Affordable Care Act (ACA) that all individuals must have health insurance coverage for at least 1095 days out of a 3-year period, or face a penalty. This rule is enforced through forms 1095-A, 1095-B, and 1095-C, which are sent by insurance providers and employers to both individuals and the IRS to confirm coverage.

## How to Calculate 1095 Rule?

The following steps outline how to calculate the compliance percentage using the 1095 Rule formula.

- First, determine the total number of days covered by health insurance over a 3-year period (D).
- Next, divide D by 1095.
- Then, multiply the result by 100.
- Finally, calculate the compliance percentage (C).
- After inserting the variables and calculating the result, check your answer with the calculator above.

**Example Problem:**

Use the following variables as an example problem to test your knowledge.

Total number of days covered by health insurance over a 3-year period (D) = 730