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The Small Business Health Options Program, or SHOP for short, was created to offer assistance in providing health insurance to employees of small business owners or non-profit organizations that staff 50 or less full-time equivalent (FTE) employees. Part-time workers who average less than 30 hours per week or certain types of seasonal workers are not-factored into this calculation.
This program was designed to be flexible for small business owners to offer healthcare, dental insurance to their employees, as well as provide convenient online services, such as application and management capabilities to meet the needs of their business and the people that make it run.
The SHOP Marketplace does require certain criteria to be met to be utilized by a small business owner.
Small business owners may qualify for some health care-related tax credits depending on certain criteria that can reach up to 50% of the employer portion of your employee’s premium costs or 35% for tax exempt employers. To qualify, you must meet the following criteria:
As a small business owner looking for the tax credit, you are not obligated to offer health coverage for part-time employees that work under 30 hours per week, seasonal workers that work under 120 days during the tax year, as these are not considered full-time equivalent employees.
The size of your staff comes into play, when considering how much tax credit you may receive as an employer. For example, if you have less than 10 employees with an average salary of $25,000 or under, you would qualify for the highest tax credit currently offered. As mentioned earlier, you must purchase SHOP Marketplace coverage among other requirements to qualify.
The SHOP Marketplace separate their plans into four different metal categories. Although the coverage may be similar in all four categories in terms of quality and services offered, the differences will lie in the cost sharing. Depending on which metal category your plan is in, this will affect things such as premiums, deductibles, copayments, etc.
It is important to know that all SHOP Marketplace plans are required to cover minimum essential coverage, pre-existing condition benefits, and some preventative coverage. However the difference between the categories are largely financial ones. Typically a lower premium plan, such as what you’d find in the bronze plan, will require a higher deductible. Consequently, a higher premium plan in the Platinum category will require a lower deductible in comparison. This is something you will consider when choosing a plan to meet the needs of your employees.
It is acceptable to offer one plan to your employees. However some states allow an employee choice option in which a small business owner may offer multiple plans for their staff, if they choose to do so. You may want to check with your state to see if you are in an employee choice option state.
The 2023 Employee Choice Option states are as follows:
Real Time Health Quotes has been verified as an approved Health Insurance Provider qualified to offer ACA / Marketplace Plans by Verisk Financial – G2.
Health Enrollment licensing information can be found here.
Realtimehealthquotes.org is not affiliated with or endorsed by the United States government or the federal Medicare program.