Your Small Business Guide to the SHOP Marketplace: Smart Health Insurance Made Simple
Navigating the Small Business Health Options Program (SHOP) Marketplace might seem intimidating at first, but it could be one of the smartest decisions you make for your business and your team. Designed specifically for companies with 1 to 50 full-time employees, the SHOP Marketplace simplifies the process of finding, comparing, and enrolling in affordable group health insurance plans. And with a little help from Take Command, you can confidently chart your course to better benefits.
What Is the SHOP Marketplace?
The SHOP Marketplace is a government-backed platform built to help small businesses offer group health insurance. If your team consists of 1 to 50 full-time employees, you can access competitively priced group plans, similar to what large corporations get. Plus, if you qualify, there are valuable tax credits waiting to ease the cost.
With SHOP, you can:
- Customize your coverage
- Decide how much you contribute to employee premiums
- Simplify enrollment and management
Why SHOP Works for Small Businesses
Group Access, Without the Hassle
Getting quality group insurance as a small business used to be tough. SHOP levels the playing field by giving you access to more affordable plans and larger group rates.
Tax Credit Potential
If you have fewer than 25 full-time equivalent employees and meet income requirements, you could claim up to 50% of your premium contributions in tax credits (35% for nonprofits). That’s a big win for your bottom line.
Plan Flexibility
Customize your offerings by choosing the plans that best fit your team and budget. From bronze to platinum coverage levels, you’re in control of how you build your benefits package.
Eligibility Criteria: Are You SHOP-Ready?
To participate in the SHOP Marketplace, your business must:
- Employ 1–50 full-time equivalent (FTE) employees
- Offer health insurance to all full-time employees (working 30+ hours per week)
- Meet a 70% employee participation rate
- Be located in a state where SHOP plans are available
How to Enroll in the SHOP Marketplace
- Confirm Your Eligibility
Ensure you meet the size, location, and participation requirements. - Compare Plans
Look at coverage, provider networks, deductibles, and premiums to find the right fit for your employees. - Set Your Contribution
Decide how much you’ll contribute—at least 50% of employee-only premiums is required. - Choose Your Enrollment Path
- Use Healthcare.gov
- Contact a SHOP-registered broker
- Enroll directly through the insurance provider
- Onboard Your Team
Make sure employees understand their options and help them through the sign-up process.
Employee Benefits: Why Your Team Will Love SHOP
Quality Plans
Plans offered through SHOP meet essential health benefits requirements and often include preventive care, prescription drugs, and mental health services.
Lower Premiums
Thanks to group pricing, employees can enjoy lower monthly premiums compared to individual plans.
Optional Add-ons
SHOP also allows you to offer extras like dental, vision, or other supplemental benefits.
Common Challenges (and How to Beat Them)
Too Many Choices?
Lean on licensed brokers or online tools to compare plans. Get employee input to match plans to real needs.
Low Participation Rates?
Clear communication, thoughtful incentives, and enrollment support can help boost employee sign-ups.
Alternatives to SHOP: Meet the HRAs
SHOP isn’t the only game in town. Health Reimbursement Arrangements (HRAs) offer small businesses flexible alternatives to traditional group plans.
QSEHRA (Qualified Small Employer HRA)
Perfect for businesses with fewer than 50 employees, QSEHRAs allow employers to reimburse employees tax-free for individual insurance premiums and medical expenses.
ICHRA (Individual Coverage HRA)
Available for businesses of any size, ICHRAs give employers total flexibility, letting them offer different reimbursement amounts to different employee classes.
With Take Command’s tools and expertise, HRAs become a modern, easy-to-manage solution that empowers employees to choose the plan that works best for them.
Why Take Command?
Take Command simplifies everything from eligibility checks to plan comparisons, enrollment, and ongoing management. Whether you choose SHOP or an HRA, we provide the guidance and support you need to confidently offer meaningful benefits.
Ready to Get Started?
Let Take Command help you navigate your health benefits journey. Whether you want to explore SHOP or consider flexible HRA options, we’re here to help you make the best choice for your business and your people.