As new small businesses find their footing and established ones reopen, employers are obtaining health insurance for their staff, so they're prepared if the unexpected occurs. COVID-19 changed the way business is transacted. To that end, many providers are offering the Small Business Health Options Program (SHOP). It provides substantial coverage at an affordable rate, benefiting owners and employees alike. To see if your business qualifies for SHOP, consult the guide below. 

What Is SHOP?

SHOP is specifically designed for small business owners. Employers have flexibility in the SHOP plans that they can provide to staff. Owners can choose to offer only health, only dental, or both. They can offer a single plan or let their employees choose from multiple options. 

Since businesses vary in income and size, proprietors can choose how much they pay toward their staff's premiums, how long new employees must wait before enrolling, and whether to offer coverage to their dependents. It's best to consult a health insurance agent before enrolling in SHOP so that business owners can balance the right plan at the best rate. 

Companies with SHOP insurance usually don't have to wait for an Open Enrollment Period, as it's often open all year. The service is also highly responsive. For instance, if a new employee begins working on the 15th and applies for SHOP on the same day, they'll likely be covered by the first of the next month. 

How Can You Qualify for SHOP?

Businesses and non-profits must have between 1 and 50 full-time employees working a minimum of 30 hours a week. However, some states allow up to 100 employees. Contact a health insurance agent to find out what Kentucky's SHOP maximum is.  

At least one employee must not be an owner, partner, or spouse of an owner or partner. 

Kentucky business owners qualify for SHOP if 75% of their staff members enroll in the program or have coverage from other sources (a family member's job, TRICARE from the military, veterans' programs, Medicare, Medicaid, or an individual plan). 

If the business has fewer than 25 employees making $50,000 or less, they qualify for a Small Business Health Care Tax Credit when the owners offer SHOP. The credit is worth up to 50% of the premium costs for businesses. Non-profits or tax-exempt companies can receive up to 35%. 

Sole proprietors or self-employed people with no staff are ineligible for SHOP but can still receive individual coverage. Meet with a health insurance agent to discuss your options. 

During the pandemic, small business owners have changed their practices to continue to provide the excellent service their customers enjoy. They've proven their ability to adapt and evolve, and they deserve an insurance agency that does the same. For over 30 years, Toohey Insurance Service in Somerset, KY, has done just that. Offering customizable and affordable SHOP plans from some of the country's largest providers, your employees and your business will continue to thrive. For more information on their health insurance policies, visit their website. To schedule an appointment, call them at (606) 678-0540.