Healthcare Reform School, Lesson 16 - SHOP Marketplace for Small Businesses

Hello everyone, and welcome back to school.  As our kids go back to the real deal school, many people are having more time to focus on other matters.  The fall is a busy season for health insurance and this fall will certainly be the busiest in history!

This morning I will write about the SHOP marketplace for small businesses.  SHOP stands for "Small Business Health Options Program".  This is the option that the Affordable Care Act (ACA) provides to employers to try to help them with small group insurance plans.

As part of the Affordable Care Act (ACA), small businesses will have the option to purchase a small group plan through the new small business SHOP marketplaces. The Small Business Health Options Program (SHOP) is a required program of each state's Health Insurance Marketplace. Small businesses with less than 100 employees or less than 50 employees are eligible, depending on the state. The small business SHOP marketplaces will open on October 1, 2013, with plan coverage starting January 1, 2014.

Small Business Health Care Tax Credits Through the SHOP

A key change is that the small business health care tax credits will only be available through the SHOP marketplace in 2014. Small businesses with 25 or fewer employees who receive less than $50,000 a year in wages may be eligible for tax credits if they purchase the plan through the SHOP marketplace. These credits will cover up to 50% of the employer’s cost (35% for non-profits) for the first two years of coverage.

Plan Coverage Options Through the SHOP

Depending on the state, plan coverage selection through SHOP marketplace will fall into one of three categories:

1. Employer choice: Employer selects one or more plans for employees
   
2. Hybrid choice: Employer selects metallic level, and employee selects plan from within that level
   
3. Employee choice: Employee can choose any plan that meets SHOP benefit plan requirements.
   

Starting in 2015, each state will be required to offer the "Employee Choice" option. Until that time it is an optional feature in the state marketplaces. To see if the "Employee Choice" will be offered in your state see 15 States to Offer 'Employee Choice' in Small Business SHOP Marketplace.  Illinois and Indiana are not on the list.

Source: Blue Cross Blue Shield of Illinois.

The cost of the plans available through the SHOP marketplaces will vary state to state.

This is the basic information,  I will expand on this next week and go over some options that small businesses have in addition to SHOP.

If you would like to review previous lessons.  They are listed below.  Your comments are welcome.

Lesson #1 - Introduction
Lesson #2 - Basic Reason for creating the Patient Protection and Affordable Care Act
Lesson #3 - Public exchanges for Purchasing Insurance
Lesson #4 - Essential Health Benefits that will be added to all Health Insurance policies in 2014
Lesson #5 - Tax Credits to Help Pay for Health Insurance
Lesson #6 - Enforcement and Penalties in the Affordable Care Act
Lesson #7 - Preparing for the Affordable Care Act
Lesson #8 -  Options for Small Businesses
Lesson # 9 - Will my Insurance Premiums change in 2014?
Lesson #10 - What Will Happen to Small Groups in 2014?
Lesson # 11 - Why Should I Buy Insurance Before the Deadline?
Lesson #12 - What does the Delay in the Employer Mandate Really Mean? 
Lesson #13 - Can I keep my Current Health Insurance Plan?
Lesson # 14 - Who is Providing Insurance During Open Enrollment?
Lesson #15 - Out of Pocket Spending Limits - Law Change