How the SHOP Works

When a business gets started there are a number of things that need to happen in order to attract employees. One of the benefits that needs to be in place is health insurance. The Covered California SHOP Exchange is a way for small businesses to provide group health insurance for their employees. Here is how Shop works for small businesses:

How Shop Works

  • Each participant in the plan completes a profile and receives a group ID.
  • The employee of the company enters the SHOP program and they are then issued an ID of their own. In order for them to      access their plan they are also issued a password.
  • Once inside the plan the employee enrolls in the health plan that they need for themselves.
  • Once the employee has made their selections the employer then verifies that they work there.
  • All information is taken care of by the SHOP and then from there it is given over to the insurance carriers.

Any small business owners who have questions about the SHOP in California, should contact Bernardini & Donovan Insurance Services. They can help answer all of your questions about Covered California SHOP.

 

Covered California SHOP Exchange: What this means for employers

In California small businesses that are struggling to provide health care coverage for their employees now have hope. The Covered California SHOP (Small Business Health Options Program) Exchange will provide a greater selection of group health insurance coverage, previously only offered to businesses with larger numbers of employees. Small business owners who are interested in joining the Covered California SHOP Exchange can do so just as long as they have less than 50 employees, for the time being.

As part of this revolutionary program, small businesses with fewer than 25 employees, as well as an annual earning that is less than $50,000, can earn a 50 percent federal tax credit for any health care coverage that is purchased via SHOP. To date 375,000 small business employers in the state of California are eligible for this small business tax credit.

Here at Bernardini & Donovan Insurance Services we offer additional information regarding the Covered California SHOP Exchange. If you would like assistance in determining if you are eligible or how to be a part of the SHOP program, contact the insurance professionals at Bernardini & Donovan Insurance Services, located in Redlands, CA today.

 

Covered California SHOP Exchange

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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