The federal Small Business Health Options Program is an insurance exchange, created by

Patient Protection and Affordable Care Act The Affordable Care Act (ACA), formally known as the Patient Protection and Affordable Care Act and colloquially known as Obamacare, is a landmark U.S. federal statute enacted by the 111th United States Congress and signed into law by Presi ...

(Obamacare). The Small Business Health Options Program (SHOP) Marketplace helps small businesses to provide health coverage to their employees. Therefore, it is open to employers with 50 or fewer full-time equivalent employees (FTEs), in which it also includes non-profit organizations. According to the

HealthCare.gov HealthCare.gov is a health insurance exchange website operated by the United States federal government under the Provisions of the Affordable Care Act, provisions of the Affordable Care Act or ACA, commonly referred to as “Obamacare”, which c ...

, the benefit of SHOP Marketplace includes allowing owners to offer health and dental coverage to employees. Other than that, with flexibility, choice, and the online application and account management, SHOP aims to meets the needs of the business owner and its employees. In 2015 Employee Choice was introduced under of the PPACA's Small Business Health Options Program (SHOP) Marketplace. While SHOP was available for 2014, this is the first year that small employers in 14 states can apply online. Before 2015 employers who provided health insurance to their employees typically worked with an

insurance broker An insurance broker is an intermediary who sells, solicits, or negotiates insurance on behalf of a client for compensation. An insurance broker is distinct from an insurance agent in that a broker typically acts on behalf of a client by negoti ...

and one

health insurance company Health insurance or medical insurance (also known as medical aid in South Africa) is a type of insurance that covers the whole or a part of the risk of a person incurring medical expenses. As with other types of insurance, risk is shared among ma ...

. In 2015, they however can offer their employees a choice of insurance companies. SHOP enrollment is available any time of the year - there is no "Open Enrollment" limitation. Employers who wish to contribute to the premium cost of their employees may qualify to receive a

SHOP tax credit The Small Business Health Care tax credit is a United States tax credit available to small employers who pay health insurance premiums on behalf of employees enrolled in a qualified health plan offered through a Small Business Health Options Progra ...

. The tax credit is worth up to 50% of employer's contribution toward its employees' premium costs. It will be up to 35% for tax-exempt employers. Unfortunately, employees can't join the plan after the initial enrollment period unless they are new hires and qualify Special Enrollment Period. According to the

, special Enrollment Period refers to a time outside of the open enrollment period, in which you and your family have a right to sign up for health coverage. In other words, you qualify for a special enrollment period 60 days following certain life events, including but limited to: change in family status such as marriage or birth of a child, change in income or address, or loss of other health coverage through unemployment or divorce. However, SHOP Marketplace is not offered to self-employed individuals, with no employees. Instead, they are essentially in the same position as unemployed persons who must turn to the

Health Insurance Marketplace In the United States, health insurance marketplaces, also called health exchanges, are organizations in each state through which people can purchase health insurance. People can purchase health insurance that complies with the Patient Protection ...

for coverage. As of March 13, 2015, the

United States Department of Health and Human Services The United States Department of Health and Human Services (HHS) is a cabinet-level executive branch department of the U.S. federal government created to protect the health of all Americans and providing essential human services. Its motto is ...

claims, evidence has shown that the SHOP marketplace is working in terms of affordability. For taxpayers, they are benefiting as the health costs and spending have decreased last year.content With a historic slow down in the growth of

health care costs Health, according to the World Health Organization, is "a state of complete physical, mental and social well-being and not merely the absence of disease and infirmity".World Health Organization. (2006)''Constitution of the World Health Organiza ...

, workers, business and taxpayers are able to generate savings under the introduction of SHOP.

References

External links

SHOP Coverage for Employers

SHOP Marketplace basics for employers
{{PPACA , state=autocollapse Affordable Care Act Health Options Program