Milestone: Develop a simple process through which small businesses can purchase insurance for their employees through the Exchange
In line with the ACA’s intent to simplify access to health insurance, states will need to plan for and develop appropriate mechanisms for small businesses to obtain insurance coverage for their employees through the Exchange.
*Milestone details:
*Full name: Develop a simple process through which small businesses can purchase insurance for their employees through the Exchange.
*Relevance to the ACA:
States are required under the ACA to establish a Small Business Health Options Program (SHOP) for small businesses to purchase health insurance for their employees through an Exchange. Here is a relevant section:
§1311 – The Secretary will provide technical assistance related to the Small Business Health Options Program (SHOP), and by January 1, 2014, states will have established a SHOP Exchange, whether merged with the individual Exchange or separate. The Secretary shall make available to states a model template for an internet portal that would direct individuals and employers to qualified health plans.
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This June 2011 paper describes and assesses distinguishing dimensions important to the design of a successful SHOP Exchange program. These include functions unique to the SHOP Exchange which will require different administrative systems.
District of Columbia
This report to the Maryland Health Benefit Exchange Board from the SHOP Exchange Advisory Committee provides recommendations for how the employers should use the exchange for their employees, and how the SHOP Exchange should operate.