Small Business Health Options Program (SHOP) can be a blessing for your business in more ways than one. According to the Small Business Administration (SBA), small businesses employ nearly 60 million people and create roughly two-thirds of net new jobs in the United States each year. However, the high costs of providing healthcare benefits deter many small businesses from offering health coverage to their employees.
This is where SHOP comes in. The program, which was launched by the Affordable Care Act (ACA) in 2014, is aimed at making affordable health insurance accessible to small businesses and their employees. Here’s how SHOP can benefit your business:
1. Lower Costs
Small businesses that sign up for SHOP can access a range of health insurance plans from multiple carriers, making it easier to find a plan that suits their needs and budget. Additionally, SHOP offers small businesses a tax credit of up to 50% of the amount they pay in premiums if they have fewer than 25 full-time equivalent employees, pay average annual wages below $50,000, and contribute at least 50% toward employees’ premium costs.
2. Wide Range of Options
With SHOP, small businesses have access to a wide range of health insurance options and carriers, giving them the flexibility to choose the best plan for their employees. These options can include different types of insurance, such as dental and vision, as well as employee wellness programs.
3. Attract and Retain Employees
Offering health insurance benefits is a key factor in attracting and retaining employees. According to a survey by Glassdoor, around 60% of employees consider healthcare benefits to be the most important benefit offered by an employer. By offering health coverage through SHOP, small businesses can differentiate themselves from competitors and attract top talent.
4. Increased Employee Productivity
Employees who have access to healthcare coverage are more likely to seek preventive care and treatment when they need it, which can lead to better health outcomes and increased productivity. Additionally, offering health coverage can help employees feel more secure and satisfied with their jobs, leading to improved morale and job satisfaction.
In Conclusion
SHOP can be a blessing for small businesses, providing affordable health insurance solutions that can help attract and retain employees, lower costs, and improve overall employee health and productivity. With a range of options and carriers available, small businesses can find a plan that suits their needs and budget, while also qualifying for tax credits that can offset premium costs.
If you’re a small business owner looking for health coverage options for your employees, consider exploring SHOP to see how it can benefit your business.
