Small business owners are inundated now with talk about Covered California SHOP. Here, we’ll take a quick look at the program and what this may mean for your company.

By definition, SHOP stands for the Small Business Health Options Program. For businesses with less than 50 employees, the program is essentially an exchange program which allows each employee to select any group health insurance carrier and any group health insurance product offered through the exchange. Larger businesses and government entities have had the bargaining power to leverage this type of flexibility as a benefit to their employees; however, smaller entities with less bargaining power have traditionally been left in the dust. SHOP essentially levels the playing field for employees of smaller businesses, increasing the quality of care, lowering costs and removing disparities through this competitive market.

The SHOP program benefits small business owners in a number of ways:

  • By teaming together a much larger pool of group health insurance participants, small businesses can now leverage the purchasing power much larger companies enjoy.
  • Eligible businesses can receive tax credits of up to 50% of the employer’s contribution.
  • Increasing the number of health insurance options available to small business employees.
  • Participating businesses receive a streamlined administrative service, reducing the paperwork hassles that frustrate most small business owners (especially those without an HR department).
  • Ultimately keeping employees and their families healthier, resulting in less time off and increasing overall productivity for each business.

To learn more about the Covered California SHOP program, contact the experienced professionals at D & S Insurance Services; insurance representatives at D & S are happy to provide you with both quotes and comparisons – free of charge – to help you make the decision that is right for your business.