Small Business Health Options Program (SHOP) is part of the Affordable Care Act (ACA) that helps small businesses provide health and dental insurance to their employees. It is designed for employers with 1–50 full-time equivalent (FTE) employees (some states allow up to 100). Through SHOP, eligible employers can:

• Offer health and/or dental coverage.

• Choose between a single plan or multiple plan options for employees.

• Qualify for the Small Business Health Care Tax Credit, which can significantly reduce premium costs.

SHOP Enrollment Periods

• Annual Open Enrollment: November 15 – December 15.

• Year-Round Enrollment: Available with Minimum Participation Requirement (MPR), usually 70–75%.

Eligibility for SHOP

• 1–50 full-time equivalent (FTE) employees (some states allow up to 100).

• Must offer coverage to all full-time employees.

• Must contribute at least 50% of employee premiums.

• Two enrollment types: Single Plan or Employee Choice (level group).

• Employers may select: Health & Dental, Health Only, or Dental Only.

Who Does Not Count as Full-Time

• Owners and family members.

• Seasonal workers (≤120 days).

• Independent contractors.

SHOP vs Non-SHOP States: Filing the Tax Credit

• States with SHOP carriers: Employers must purchase coverage through the SHOP Marketplace to qualify.

• States without SHOP carriers: Employers may still claim the credit if they meet requirements but must file IRS Form 8941 directly with their tax return.

The Small Business Health Options Program (SHOP) is part of the Affordable Care Act (ACA) that helps small businesses provide health and dental insurance to their employees. It is designed for employers with 1–50 full-time equivalent (FTE) employees (some states allow up to 100). Through SHOP, eligible employers can:

• Offer health and/or dental coverage.

• Choose between a single plan or multiple plan options for employees.

• Qualify for the Small Business Health Care Tax Credit, which can significantly reduce premium costs.

SHOP Enrollment Periods

• Annual Open Enrollment: November 15 – December 15.

• Year-Round Enrollment: Available with Minimum Participation Requirement (MPR), usually 70–75%.

For FFM states, small businesses enrolling outside the annual Open Enrollment Period must meet a Minimum Participation Requirement (MPR) of 70% of full-time employees. During the official Open Enrollment Period, the MPR does not apply. State-based SHOPs, like Massachusetts, have different participation rules.

Open Enrollment Timing Differences

• Federally Facilitated SHOP (FFM):

  • There are generally two enrollment periods:

    • Annual Open Enrollment: November 15 – December 15.

    • Rolling Enrollment: Employers can also start coverage at other times during the year, but special rules like the Minimum Participation Requirement (MPR) may apply.

• State-Based SHOP (SB) – Massachusetts Example:

  • Massachusetts runs its own Health Connector for Business.

  • Employers can start coverage at any time during the year (not limited to federal open enrollment dates).

  • Contribution and participation rules may be different from federal standards.

• Hawaii:

  • Hawaii is exempt from ACA SHOP rules due to the Hawaii Prepaid Health Care Act. Enrollment and compliance rules follow state law, not federal ACA rules.