The Covered California SHOP Exchange provides two major benefits to small employers – access and administrative relief. SHOP provides access to a large selection of health plans that have previously been available only to larger companies. SHOP also takes over plan administration, relieving businesses with fewer than 50 employees of the burden of dealing with employee health insurance.

California’s approximately 375,000 small companies with 25 or fewer employees earning an average annual wage of less than $50,000 qualify for an additional benefit. These smaller businesses will be eligible for a 50% federal small-business tax credit when they purchase coverage through SHOP.

SHOP relieves small businesses of the burden of finding and administering health plans for their employees. The business sets up a customized SHOP profile and receives a unique group ID. Employees login to the SHOP exchange and select a plan from the available qualified health plans. SHOP handles enrollment, eligibility, adds, changes, and terminations. The SHOP Exchange provides the employer with the necessary reports to integrate employee premium deductions into their payroll system. The employer writes just one check and the Covered California platform sends the premiums to each health insurance carrier.

For more information about health insurance for small businesses in California, please contact Bernardini & Donovan Insurance Services.

 

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