Covered California Small Business
Covered California has two different programs: Individual Health Plans and Covered California for Small Business (also called SHOP). SHOP acts like a hub that brings together insurance providers on behalf of businesses. It aggregates small business medical plans, obtains information on their pricing and benefits, enrolls employees and consolidates billing. Employers are free to choose how many plans to offer and how much to pay in premiums, while receiving one bill and writing a single check for all their employees.
More Benefits of SHOP
Other benefits of SHOP include:
- Certifying, rectifying and decertifying health plans on the exchange
- Rating every single plan according to price and quality
- Standardizing information on health plans for consumers
- Having an electronic calculator that businesses can use to find out potential eligibility for business tax credits
How SHOP Helps Small Businesses in California
Here’s a look at how SHOP can help small businesses in California better afford health insurance for their employees:
1. More Choice and Flexibility
Apart from HMO, EPO, HSA and PPO plans, employers who enroll in Covered California can offer their employees multiple carriers and levels of coverage.
2. Ability to Compare Plans Side-By-Side
Employers can now compare plans side-by-side. Most small businesses don’t have quick and easy access to information on health care options. Covered California organizes this information for them in an easy-to-use web portal.
3. Protection Guarantee
Covered California helps small businesses reduce health care costs by:
- Offering employers a potential business tax credits of up to 50% of the employer’s premium contribution for employee health coverage
- Allowing healthy competition between health care plans to drive health care costs down
- Giving employees an opportunity to contribute to their coverage in case they need more comprehensive health care
- Keeping employees healthier, reducing absenteeism and improving productivity at the workplace
What Benefits Does SHOP Offer?
The law requires that SHOP offers ACA compliant medical coverage including the 10 essential benefits which are: emergency services, hospitalization services, ambulatory services, prescription medications, maternity and breastfeeding support, laboratory services, preventative and wellness benefits, mental health and drug abuse services, and pediatric services (including dental and vision care for kids).
Types of Health Plans on SHOP
Covered California has four levels of health plans, each offering the required benefits. The employer chooses the level(s) of coverage to offer, and employees are free to pick any plan within those levels. The four levels are based on specific metal tiers and include the following:
- Bronze: The plan pays 60% of health care costs.
- Silver: The plan pays 70% of health care costs.
- Gold: The plan pays 80% of health care costs.
- Platinum: The plan pays 90% of health care costs.
Health plans in the Covered California insurance Small Business exchange are required to offer at least one plan from the above four categories.
Click the “Get a Quote” button on this page to compare California Small business insurance quotes instantly. Call (877) 752-4737 for immediate assistance or to purchase a plan. We offer free quotes and advice for California small business medical plans.