(SHOP) Small Business Health Options
The (SHOP) Small Business Health Options Exchange will provide small employers with a new marketplace for employee health coverage. The California Health Benefit Exchange is still developing final SHOP rules, but here is a summary of what we know thus far. Updated information will be published as new guidance is provided by state and federal authorities. Additional resource links appear below.
- Broker InvolvementEmployers can continue to use their Insurance Brokers.
- EligibilityEmployers with fewer than 100 employees may participate, although states may limit eligibility to employers with 50 or fewer employees in the first two years. California has elected to keep the SHOP maximum group size to 50 until 2016. Employers must attest to offering all full-time employees coverage through a SHOP. Sole proprietors are considered individuals and will purchase through the Exchange, not through a SHOP.
- EnrollmentSHOP open enrollment began October 1, 2014, contact me with your group census and I will walk you through the process of enrolling your employees through California’s Shop exchange / marketplace.
- Premium PaymentThe SHOP will deliver a single bill to the employer.
- Tax CreditEmployers purchasing coverage through SHOP may be eligible for a tax credit of up to 50% of their premium payments if they have 25 or fewer employees, pay employees an average annual wage of less than $50,000, offer all full time employees coverage, and pay at least 50% of the premium.