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Benefits of the Small Business Health Options Program That You Need To Know As A Business Owner

SHOP or Small Business Health Options Programs is a health exchange program that’s run by the federal government. Thanks to this insurance plan, small business owners are now eligible to receive health as well as dental coverage for their employees and themselves. SHOP offers coverage to businesses which have a workforce of one to fifty people. There is a SHOP marketplace that offers businesses access to other health plans. Created under the 2010 Patient Protection and Affordable Care Act, the small business health options program has been a big help to small businesses around the country. Below, we have provided essential details about the entire program.

What Is A Small Business Health Options Program?

The erstwhile president of the United States, Barack Obama gave his consent to the Patient Protection and Affordable Care Act, which is known as Obamacare. The main law was to accentuate healthcare coverage, diminish the health care costs, and make the industry more accessible to the general public, aside from making it transparent and fair. SHOP was established to help small businesses receive medical and dental health insurance for both the workforce and the owner.

Small business owners can use the service to compare different insurance plans, their coverage terms and rates, and buy insurance plans. The marketplace breaks the insurance plans into simple categories and allows the owners to go through the options. They can also include the employees in the procedure to make it more transparent. In states like New York, California, Colorado, Minnesota, Massachusetts, Connecticut, Maryland, Rhode Island, and Washington D.C., you have to use your state’s websites if you wish to gather requisite information about SHOP.


If a business has a workforce of over 50 full-time employees, owners have to provide affordable health insurance or shell out a tax penalty. If you have less than 50 employees, then proffering health insurance is not mandatory. However, health insurance has long-term benefits and that becomes more significant than the cost and time that goes behind making health and dental coverage available. The advantages of providing health insurance include productivity, job satisfaction, and recruiting and retaining talent.

Benefits Of SHOP

If you assume that a government marketplace would offer insurance plans that are government-funded, you don’t have to worry about that. Through the Small Business Health Options Program, business owners can surf through a long list of private insurance plans depending on the location of their businesses. You have the advantage of comparing various plans and lay your hands on a stunning deal. This is what you want when you are searching for health insurance. Normally, there are four categories of insurance plans designed for small businesses. Under Bronze, the insurer pays 60% of the insurance premiums, while you need to shell out 40%. For Silver, the insurer pays 70% of the premiums, whereas you have to provide 30%, Under the Gold category, the insurer promises to pay 80% and you contribute the remaining 20%. As far as the Platinum category is concerned, the insurer shells out 90%, while you spend 40%.

You Don’t Have To Wait For Enrolment

You can join the Small Business Health Options Program anytime you want. Waiting for an open enrolment until you get to buy insurance is not required. This is quite in contrast with the typical process of obtaining health insurance elsewhere which is highly inconvenient and requires you to stand in queue for hours and days. With SHOP, you can seek out health insurance much more precisely and at a time when you are confident that your business has the potential to counter the extra expense.

You Can Settle For a Plan Or Let The Employees Choose

With SHOP, you have two options. Either you can choose the insurance plan that suits your business best or let the employees take a pick. If your employees are allowed to choose their plans according to their needs, it doesn’t imply that you can’t plan your budget based on your business needs. It doesn’t matter which plan your employees select. It’s up to you to decide how much money you will be putting for the health insurance plan.

The Small Business Health Options Program is absolutely a fantastic way to seek out, apply for, and manage some of the best health insurance plans. So, select wisely and facilitate your employees to choose the right insurance plans.

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