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Three Reasons You Should Consider The SHOP Marketplace For Your Business Right Now
I write on the relationship between business, policy and politics.
Over the next 12 days only, small businesses can enroll in Small Business Health Options Program ... [+] (SHOP) coverage without having to meet the Minimum Participation Rate (MPR) in their state AFP PHOTO / Karen BLEIER (Photo credit should read KAREN BLEIER/AFP via Getty Images)
For small business owners planning for 2022 in a number of areas, there is a unique opportunity to obtain healthcare coverage for themselves and their employees. Over the next 12 days only, small businesses can enroll in Small Business Health Options Program (SHOP) coverage without having to meet the Minimum Participation Rate (MPR) in their state or a minimum employer contribution requirement.
SHOP is Healthcare.gov's program geared towards small employers generally with 1-50 employees based on the state requirements. The waiver of the MPR allows small businesses to offer a SHOP plan, even if they do not meet the required participation level with their employees. However, this waiver will only be available until December 15.
Here are three reasons why small businesses should consider enrolling before then.
1. Small Businesses Can Sign up and Then Add Employees
A challenge in signing up for a plan in the SHOP marketplace is meeting the program's MPR, which is generally 70% of a business's eligible employees, but can vary by state. For example, the MPR in Iowa is 75%, but 50% in Tennessee and 0% in Mississippi. Instead of getting the requisite number of employees interested in receiving the health coverage and then signing up, this waiver of the MPR allows small business owners to obtain a SHOP plan and begin adding employees in the new year.
2. The SHOP Marketplace Specializes in Small Businesses Health Insurance Plans
The SHOP Marketplace offers full guidance on the plans available through Healthcare.gov to small businesses with 50 or less full-time employees. Not only do the plans provide quality, affordable health and dental insurance, they also give small business owners flexibility in selecting the appropriate coverage for their employees. While self-employed individuals, such as gig workers, freelancers, consultants, independent contractors, and business owners with no employees, were not able to qualify for coverage in the past, the American Rescue Plan broadened eligibility for coverage so they may now qualify. The Small Business Administration (SBA) offers a resource for understanding the options available in using Healthcare.gov for small business owners and self-employed individuals in 33 states.
3. SHOP Plans Can Lead to a Small Business Health Care Tax Credit
SHOP plans are the best and generally the only way to qualify for the Small Business Health Care Tax Credit, which can be as high as 50% of an employer's contribution to premium costs. There are a number of requirements for obtaining the credit, but it is generally available to businesses with 25 for fewer employees who have a SHOP plan.
The past two years have been challenging as small businesses have struggled just to stay open, much less grow. This waiver period gives employers an easy way to prepare for the future and provide a necessity to their workers. Small business owners can visit healthcare.gov/small-businesses/ to learn more and take action by December 15.
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Zone 3 Business Solutions Red Deer
Source: https://www.forbes.com/sites/rhettbuttle/2021/12/03/three-reasons-you-should-consider-the-shop-marketplace-for-your-business-right-now/
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