SHOP Exchanges? Are They a Good Option for Small Businesses?

Sep 20, 2015

  1. Sherota1
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    Sherota1 Super Genius

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    There has been a lot of discussion on the forum about enrollments in the individual exchange but very little about enrolling small businesses in the SHOP exchanges. Has anyone had any experience with the SHOP exchanges? Do they have the same issues as the individual markets? Is it something to be avoided? In many cases purchasing on the individual market is a better choice but for the business that want to go this route I'm trying to see if it will be more trouble than it's worth.
     
    Sherota1, Sep 20, 2015
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  2. kgmom219
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    kgmom219 What's Next?

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    Use the search engine. Lots of threads on this. Bottom line...I've never seen the numbers work, so that its worth dealing with the family glitch. And the high audit risk.
     
    kgmom219, Sep 20, 2015
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  3. Ann H
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    Ann H Guru

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    Google it. A surprising number of businesses did not apply for it and/or did not qualify for it. There are reasons why.

    The calculation is very difficult, and most businesses find that the cost of the Accountant is more than the tax credit! The true tax credit is only for groups of 10 or less, with an average wage of $25,000 or less. Between 10 and 20 employees, and between $25,000 and $50,000 of average wages, the tax credit is reduced until it becomes nothing.

    Also it is an audit flag for the IRS.
     
    Ann H, Sep 21, 2015
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  4. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    Ditto to what Ann said. Also, I am told that for admin related issues for the Plan you must go through CMS to make changes to it. You cant just call BCBS directly and make a change. The SHOP market is useless or not worth it 95% of the time. And if the accountant fees for all of the number crunching do not zero out the Credits, then an audit most certainly will, and will likely put them in the red.
     
    scagnt83, Sep 21, 2015
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  5. AllenChicago
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    AllenChicago Guru

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    9-23-2015

    The government has been working all year on a big film production. On September 17th it was finally released. Grab some popcorn, sit back and see how agents can make a lot of money enrolling small businesses in the Small Business Health Options (SHOP) program before the end of 2015!

    H.D. Video Link: https://www.youtube.com/watch?v=c0oK8g4LqLw
     
  6. AllenChicago
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    AllenChicago Guru

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    It looks like the SHOP is being shut down on 12/31/2017.

    ""On May 15, 2017, the Centers for Medicare and Medicaid Services announced that it was planning to essentially end the Federally Facilitated SHOP exchange, which covers 33 states, as of the end of 2017.

    Under rules that CMS proposed to take effect as of January 1, 2018, HealthCare.gov would continue to make eligibility decisions for FF-SHOP participation for small employers—essentially determining eligibility for the small employer tax credit–but would no longer handle enrollment for employers or employees, process premium payments, or handle other SHOP functions.""

    Full Article: CMS Announces Plans To Effectively End The SHOP Exchange
     
  7. AllenChicago
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    AllenChicago Guru

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