AW Elliot & Associates knows that insurance is crucial to any business. That is why we’re here to help you select the most suitable one for your company.
There are four plan categories in the Small Business Health Options Program (SHOP) Marketplace, and they all offer the same benefits. The difference is on how the plan and your employees share the costs of care. In some states, you can choose a category, and your employees can select any plan in your chosen category.
The category you select affects how much your employees pay for premiums, deductibles, and copayments, as well as their out-of-pocket costs for the year if they need extensive care. The plan categories are the following:
The quality of care a health plan provides does not depend on the plan’s category. All plans offered through the SHOP Marketplace offer a set of essential health benefits. Additionally, they all cover pre-existing conditions.
When you offer SHOP coverage, you and your employees each pay a part of a monthly premium. Just as essential as the monthly premium is how much your employees have to pay when they get care. The plan with the least premium may not give you or your employees the best overall value.
Premiums are typically lower for plans paying a smaller share of medical expenses when your employees get care. Your employees will probably pay a lower monthly premium in a Bronze plan but will probably pay more out of pocket when they take advantage of medical services.
The plans that generally have the highest monthly premiums and least out-of-pocket costs for services are platinum plans. If your employees take advantage of a lot of services or have a health crisis, platinum plans will likely provide better financial protection.
Take note: The lower the premium, the higher the out-of-pocket expenses. The higher the premium, the lower the out-of-pocket expenses.
Give us a call. We would be more than glad to discuss your options and what makes sense for you and your employees.
The SHOP Marketplace exists to help small businesses provide health coverage to their employees. It is open to employers with up to 50 full-time equivalent employees (FTEs), including nonprofit organizations. You can enroll in SHOP at any time of the year.
Apart from allowing you to offer health and dental coverage that meets your business’ and employees’ needs, SHOP offers choice, flexibility, as well as online application and account management.