Small Business Health Options Program

Yesterday the Small Business Health Options plan was rolled out by Covered California by Peter Lee Executive Director of Covered California.

This is designed for small businesses with 2 to 50 employees and acts as a purchasing pool for small businesses health insurance.

The rates were generally lower based on an employee of 40 years old. The problem is that it is hard to tell what the cost will be at different ages.

It will however be the only way small businesses can obtain tax credits if they have less than 25 employees with an average income below $50000.

The real benefit of SHOP is that employees will be given choice of plans to choose from which usually involves additional cost to employers. It also will standardize coverage making it easier for employers to compare different plans.

The SHOP will be available for enrollment Oct 1 and coverage will take effect January 1st, 2014. Peter Lee indicated that the rates and Bronze Gold and Platinum plans would not be available until Oct 1 as they need to be reviewed by the Department of Insurance and Department of Managed Care.

If you are providing health coverage for your employees are you going to look into the SHOP when your coverage renews?

If you would like additional information on SHOP please  let me know by email.

Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188