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11/ accessHealthnews.net Summer 2013 SHOP Marketplace Small Business Health Options Program (SHOP) care law for employers with more than 50 FTE employees that don't offer health insurance, or whose health insurance is not "affordable" or doesn't meet "minimum value." ACA stipulates that an "affordable" plan is one that keeps an employee's share of the premium at 9.5 percent or less of household income. To meet ACA's "minimum value" standards, the employer pays at least 60 percent of total health care costs. Plans on the marketplace are required to meet both affordable and minimum value requirements. The Small Business Health Options Program (SHOP) allows small employers to purchase employee health plans through the Marketplace. Starting in 2014, businesses and nonprofits with fewer than 50 full time equivalent (FTE) employees can purchase a plan (bronze, sliver, gold or platinum) through SHOP. In 2014, health reform prohibits insurance companies from rejecting coverage because of pre-existing conditions, charge higher premiums for women, or increase group premiums for employees with high medical costs. The reforms do not apply to grandfathered plans (a health plan created on or before March 23, 2010). Tax penalties SHOP health plans will not include employees' dependents or enable employees a choice of health plans until 2015. Also, businesses with more than 50 FTE employees that do not offer insurance could face penalties. The "Employer Shared Responsibility" payment is a new requirement under the health Penalty amounts The penalty or "employer shared responsibility" payment is based on two criteria: one, if an employer (with more than 50 FTE employees) doesn't offer insurance, the amount is $2000 per full time employee and excludes the first 30 employees; second, if the employer offers insurance but the insurance doesn't meet minimum requirements (i.e. affordability and minimum value), the amount is $3000 per full time employee who qualifies for savings in the marketplace. Unlike employer contributions to employee premiums, the employer shared responsibility payment is not tax deductible. Tax credits Employers with 25 or fewer FTE employees, who make an average of $50,000 per year or less, will qualify for tax credits. The tax credit is highest for companies with fewer than 10 employees who are paid an average of $25,000 or less. The smaller the business, the bigger the credit. To qualify for SHOP tax credits, an employer must pay at least 50 percent of a full time employee's premium costs. Employers are not required to offer health insurance to part time employees or to dependents. In 2014, the tax credit will be worth up to 50 percent toward employees' premium costs and up to 35 percent for nonprofit employees. Currently, the tax credit is 35 percent of employer contributions to premiums (25 percent for nonprofits). Learn more at HeatlhCare.gov.

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