Small Business Health Options Program (SHOP)
The SHOP (or Small Business Health Options Program) helps small group employers offer health coverage to their employees by allowing them a tax credit (not a deduction) at the end of the year for the cost of employee medical insurance.
The SHOP marketplace is open all year. Open enrollment for individuals and families is limited, however small employers can purchase health insurance for their employees anytime of year.
The disadvantage of a SHOP plan is that currently only Kaiser-Permanente and Blue Cross Blue Shield offer SHOP, and the plans are very limited. In most cases premiums are no less than traditional plans offered off-exchange, and the premiums must be paid up front each month. The employer does not see any benefit until taxes are filed at the end of the year.
The advantage is that instead of "deducting" the cost of employee health insurance as a business expense, the employer can actually take a tax credit (a complete reduction in taxes) at the end of the year based on a portion of the cost of employee health insurance benefits.
Let an experienced broker help you with SHOP
A licensed agent or broker can:
Determine if your business is eligible for SHOP (Less than 50 employees is one of the requirements).
Help you apply for insurance for your employees.
Review and compare prices, coverage, quality, and other important features of available SHOP plans.
Help you enroll in the SHOP plan you choose.
Help you understand eligibility for the Small Business Health Care Tax Credit
Answer your questions and guide you through the process
Help with billing, claims, new hires, terminations, renewals, etc. once you've enrolled.
Interested in a SHOP quote? Contact us today!
This short video will give you helpful information on SHOP:
When you create your SHOP account on-line, choose Reed Insurance Group as your Broker by searching brokers by name or our NPN number 2486845. We can then help you through the process and answer all your questions.
It’s Tax Time!
Do You Qualify for the
Small Business Health Care Tax Credit?
Small employers enrolling in health insurance coverage through the SHOP Marketplace may be eligible for the Small Business Health Care Tax Credit worth up to 50% of their premium contribution.
If you have fewer than 25 full time equivalent employees whose average annual wages are $50,000 or less and pay at least 50% of premium cost, you may be eligible for the Small Business Health Care Tax Credit.
Visit the SHOP Tax Credit Estimator to find out more about the Small Business Health Care Tax Credit. The SHOP Tax Credit Estimator can help you determine if you may be eligible and show what the tax credit may be worth to your small business.
For more information on the Small Business Health Care Tax Credit, please contact us.
Additional Resources: HealthCare.gov, or for more detailed tax information, go to the Internal Revenue Service.
How the SHOP Marketplace Works
Create an account
First you'll provide some
basic information to get
going. Sign up for SHOP
emails, then you'll
receive a notice as soon
as you can create an
In order to be eligible to
use SHOP, your business
must meet certain
Enter information about
your business, including
all employees eligible for
Pick a Plan
You will see all the plans
available to you and can
compare price, coverage,
and other features side-
by-side. Choose a plan
that meets your needs
and decide how much
you'll pay toward
Let your employees know
they can sign up for