SHOP Small Business Health Exchange
Published on : Oct 27 2013
What is SHOP?
The Small Business Health Options Program (SHOP) is an online health insurance marketplace where businesses with fifty (50 ) or less full-time equivalent employees can view available coverage options, compare costs and even elect benefits.
SHOP marketplaces will be available on November 1, 2013 in all fifty states and a business must have an office or employee work site in the state in which the SHOP's service area can be used. To learn more about your specific state's SHOP visit https://www.healthcare.gov/marketplace/shop/.
As part of the requirements of participating in SHOP, the business must have 70 percent of its eligible employees participate in the plan. Additionally, depending on the number of employees and the annual compensation they receive, your small business may qualify for a small business healthcare tax credit. If your small business already receives this tax credit, it is very important that you take this dollar amount into consideration when reviewing available healthcare plans both through the exchange and via direct sales through a broker. Furthermore, you may want to consult a small business tax professional or your accountant to review the impact of the tax credit and your business' qualification.
Starting in 2014, the tax credit is worth up to 50% of your contribution toward employees' premium costs (up to 35% for tax-exempt employers).
To learn more about tax incentives for the healthcare tax credit, talk with your small business accountant or tax professional.