CMS NEWS
FOR IMMEDIATE RELEASE
May 15, 2017
Contact: CMS Media Relations
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Centers for Medicare and
Medicaid Services Offers New Health Coverage Enrollment Option for Small
Business
Today, the Centers for Medicare & Medicaid Services (CMS)
announced a plan to change the way that small businesses enroll in
insurance coverage through the Federal exchanges, offering employers the
help they need to find affordable insurance for their employees.
The Federally-Facilitated Small Business Health Options Program
(FF-SHOP) program was mandated under the Affordable Care Act (ACA), but
failed to sign-up significant numbers of small employers. Out of the
nearly 30 million small businesses in the country, less than 8,000, just
.1 percent of small businesses currently participate in the FF-SHOPs in 33
states, which cover less than 40,000 individuals nationwide. SHOP
programs are now defunct and do not provide needed insurance coverage for
small businesses.
“Our goal is to reduce ACA burdens on consumers and small businesses
and make it easier for them to purchase coverage,” said CMS Administrator
Seema Verma. “The ACA has failed to provide affordable insurance to small
business and to the American people. This new direction will help
employers find affordable healthcare coverage for their employees and
make the SHOP exchanges function more effectively.”
As part of the changes CMS intends to propose, employers would still
obtain a determination of SHOP eligibility through HealthCare.gov. The
move would reduce the federal government’s role in healthcare coverage
decisions and make it easier for issuers to use their own enrollment
systems for SHOP plans. Online enrollment would be removed from
HealthCare.gov and small employers would access coverage through an agent
or broker, or an issuer of their choice, for plan years beginning on or
after January 1, 2018.
The FF-SHOPs exist in states where the SHOP program is operated by the
federal government. Small businesses with SHOP coverage that took
effect in 2017 would be able to continue using HealthCare.gov for
enrollment and premium payment until their current plan year ends.
Some employers that purchase SHOP coverage are also able to access the
Small Business Health Care Tax Credit. This option will still be
available to small employers who purchase coverage under the new
enrollment approach.
Under the intended approach, state-based SHOPs not using
HealthCare.gov could continue to operate as they have previously.
For more information please click here: https://www.cms.gov/CCIIO/Resources/Regulations-and-Guidance/Downloads/The-Future-of-the-SHOP-CMS-Intends-to-Allow-Small-Businesses-in-SHOPs-Using-HealthCaregov-More-Flexibility-when-Enrolling-in-Healthcare-Coverage.pdf
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