top of page

SHOP marketplace

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

account.

Apply

In order to be eligible to

use SHOP, your business 

must meet certain

eligibility requirements.

Enter information about

your business, including

all employees eligible for

coverage.

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 

employee coverage.

Enroll

Let your employees know

they can sign up for 

coverage. 

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.
bottom of page