The Centers for Medicare and Medicaid Services released a set of frequently asked questions relating to small businesses and the SHOP Health Exchange marketplace.
The Small Business Health Options Program (SHOP) is a new program for purchasing health insurance by small businesses to offer to their employees. Coverage is purchased through the Marketplace, or "Exchange."
Some questions and answers follow.
Q- How are premiums calculated in SHOP?
A.- The total premium charged to the group is the sum of the premiums of each of the participants and beneficiaries covered under the plan.
Q.- If an employer has multiple worksites in different states, which address is used to adjust premiums?
A.- The employer establishes one account per state. The rating area for the entire group is determined by the employer's principle business address.
Q.- If the employer moves, does the rating area change?
A.- The rating stays constant for the plan year.
Q.- Are composite premiums used in SHOP?
A.- Yes, composite premiums will be available upon request.
Q.- How will employers contribute premiums through SHOP?
A.-
Small employers seeking alternative health insurance options may decide to explore the offerings through the SHOP.