Delay in Online SHOP Enrollment Through www.healthcare.gov

Posted by BAS - 05 December, 2013

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Employers with fewer than 50 full-time-equivalent employees are not required to offer health coverage to their workers under health care reform. However, the Affordable Care Act allows these employers to purchase coverage through the Small Business Health Options Program of the Exchange.

It was intended that SHOP would operate as an online marketplace, and employers could compare plans and purchase coverage online. Last week, the government announced that for 2014, employers cannot use the online marketplace. Instead, small employers must enroll their employees in a SHOP plan through an agent, broker or insurer that offers a certified SHOP plan and has agreed to conduct enrollment in accordance with HHS standards. This “direct enrollment” will be used until online enrollment is operational, which is expected to be in 2015.

The agent, broker or insurer that processes enrollment will review the application and determine if the employer is eligible for SHOP coverage. If the company is determined eligible, the employer may be eligible to claim the small business health care tax credit at the end of the year. The agent, broker or insurer will be responsible for the actual enrollment.

Small employers may still go online to compare different plans that are available through SHOP

Enrollment through SHOP must be completed by December 15, 2013 for a January 1 effective date. It is anticipated that this deadline will be extended to December 23, 2013.

Topics: Health Care Reform (ACA)


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