The Health care reform law mandates that California implements a Group Health Insurance Exchange, called SHOP, the Small Business Health Option Program, in which Small Business can buy their health insurance.
Initially in 2014, SHOP exchanges will limit eligibility to only businesses with up to 50 employees and will expand in 2015 up to 100 employees
The exchange purpose is to simplify the process of finding health insurance for small business, and applying any applicable small business tax credits. Small business will be able to pick a variety of health insurance plans and there is no more participation limitation. Only while buying through the state exchange SHOP will business owner qualify for an up-to 50 % tax credit for the employers contribution.
It is critical that any small business owner keeps informed about the upcoming changes in the health insurance industry, Solid Health Insurance Services will help you to navigate to the new system of SHOP.