LOS ANGELES, Calif. — Covered California™ today officially launched the full
self-enrollment function of the Small Business Health Options (SHOP) online
marketplace. This significant new
function on the Covered California website will enable small businesses to
fully enroll for coverage that may begin as early as Jan. 1, 2014.
“Small businesses now have new options to provide more
choice for their employees and new affordable options for their business,” said
Covered California Executive Director Peter V Lee. “Covered California has created the Small
Business Health Options Program (SHOP) to help the small business owners to get
the best value for themselves and their employees. Since October more than 1,500 small business
owners have begun the process of exploring whether the SHOP program is right
for them.”
Small-business
owners with one to 50 eligible employees may now enroll in Covered California’s
Small Business Health Options Program (SHOP) plans for coverage effective Jan.
1, 2014. Like the health insurance plans in Covered California’s
individual market, Covered California’s SHOP plans were negotiated to bring a
standardized set of benefits, a robust provider network, and a broad choice of
health insurance plans with competitive pricing to employers and their
employees.
Previously, small business employers
have been able to register online, check their eligibility and work with a
Certified Insurance Agent to obtain a quote.
The new system enhancements now allow online enrollment functionality
for SHOP, including online quoting, the ability to submit an online application
at www.coveredca.com in real-time, and the ability for employers to initiate
electronic open enrollment for their employees.
Many Small-business owners qualify for a federal tax credit
to help offset contributions toward employee premiums. Beginning in 2014, the
only way for small-business owners to access the tax credits is to purchase
insurance through Covered California’s SHOP. Small
businesses are eligible for a federal health care tax credit if they have fewer
than 25 full-time-equivalent employees for the tax year, pay employees an
average of less than $50,000 per year and contribute at least 50 percent of
their employees’ premium cost. Employers with 10 or fewer full-time-equivalent
employees with wages averaging $25,000 or less per year are eligible for the
maximum amount of tax credits.
“The tax credits available to small business through
Covered California make quality coverage more affordable,” said Lee. “For
example, a beauty shop with 10 full-time employees and total wages of $250,000 that
purchases insurance through Covered California’s SHOP may be eligible for a
$35,000 tax credit in 2014. We know that the tax credit is meaningful for a lot
of small business that have been struggling to obtain quality, affordable
coverage for their employees.”
In addition to purchasing coverage on
the Covered California website, Covered California SHOP plans are sold through
licensed agents who are trained and certified by Covered California.
Since registration opened in August, more than 22,000 licensed agents have
signed up to become certified to sell Covered California products, with more than
7,000 agents currently certified and available to help individual consumers and
small employers in the Covered California marketplace.
The increased website functionality
also includes a number of new features available for the Certified Insurance
Agent community, such as the ability to create an online profile for an
individual consumer or small employer; the ability to start and submit an
application on behalf of an individual or small employer; and, the ability to
process and manage employer online enrollment applications for SHOP.
About the Small
Business Health Options Program (SHOP)
The Affordable Care Act includes provisions to encourage
small businesses to offer health coverage for their employees by making
insurance more affordable and easier to purchase. Covered California has
created the Small Business Health Options Program (SHOP) to facilitate the
purchase of affordable health insurance for small-business owners.
SHOP is a second marketplace—separate from the one for
individuals—and is designed to give employers and their employees more options
for health coverage. Using this
marketplace, small-business owners can shop for health insurance in ways that
offer convenience and choice, which is comparable to how large companies shop
for employee health insurance today.
In 2014, health insurance companies participating in SHOP
are: Blue Shield of California, Chinese Community Health Plan, Health Net,
Kaiser Permanente, Sharp Health Plan and Western Health Advantage. These plans will be sold through Certified
Licensed Insurance Agents trained and certified by Covered California.
Small businesses are not required to
buy insurance for their employees. SHOP is completely voluntary, and small
businesses will not be penalized for non-participation. Small businesses can
enroll in a SHOP plan year round.
About Covered California
Covered California is the state’s marketplace for the
federal Patient Protection and Affordable Care Act. Covered California, in
partnership with the California Department of Health Care Services, was charged
with creating a new health insurance marketplace in which individuals and small
businesses can get access to affordable health insurance plans. With coverage
starting in 2014, Covered California helps individuals determine whether they
are eligible for premium assistance that is available on a sliding-scale basis
to reduce insurance costs or whether they are eligible for low-cost or no-cost
Medi-Cal. Consumers can then compare health insurance plans and choose the plan
that works best for their health needs and budget. Small businesses can
purchase competitively priced health insurance plans and offer their employees
the ability to choose from an array of plans and may qualify for federal tax
credits.
Covered California is an independent part of the state government whose job is to make the new market work for California’s consumers. It is overseen by a five-member board appointed by the Governor and the Legislature. For more information on Covered California, please visit www.CoveredCA.com.
