What is a SHOP exchange?
The Small Business Health Options Program (SHOP) is a program that allows small employers to purchase health coverage for their employees. SHOP is part of the Affordable Care Act, and was initially envisioned as a way for small employers to utilize a Marketplace/exchange platform that would allow their employees to select from among multiple small group health plans.
But the program now operates like that in only a few states that run their own Marketplaces. In most areas where there are still SHOP plans available, they can only be purchased directly through insurers — as opposed to through a Marketplace platform. And in many areas of the country, there are no SHOP-certified plans available at all.
Learn more about SHOP and the states where SHOP plans area still available.
Small-business healthcare tax credit
Businesses that purchase SHOP coverage are eligible for a small-business health care tax credit. However, the tax credit is only available for up to two years. And as described here, the availability of the tax credit is limited if a business is in an area where there are no longer any SHOP plans available.
