SHOP, also known as the Small Business Health Options Program, is getting a “rebrand” on the Covered California website. The new name of the program for small business will be called Covered California for Small Business. According to some officials, the naming and marketing of the program was not as straightforward as other programs. Therefore, they are hoping that this rebrand will market to a broader audience and entice more businesses to enroll in coverage.
About 2,289 small businesses are currently enrolled in Covered California for Small Business. One of the primary benefits of a small business enrolling in a Covered California health plan is the tax credits.
Small Business Employers who enroll in a Covered California health plan can receive tax credits if:
- they have less than 25 full time equivalent (FTE) employees
- the average wages per FTE are less than $50K
- the employer pays 50% of the employee’s premium cost (minimum)
In order to offer coverage through Covered California for Small Business, employers:
- must have 1-50 Full Time Employees (working at least 30+ hours/week)
- must offer coverage to all Full Time Employees
- *offering coverage to part time employees is optional
NOTE: In 2016, eligibility for Covered California for Small Business will change to include employers with 100 or less employees.
Have any questions regarding the upcoming changes for Covered California for Small Business? Give us a call to learn more!