SHOP –  Covered CA for Small Business (CCSB) Employer Plans

As I  see it, the main advantages to Covered CA for Small Business CCSB:

• Small Biz Health Care Tax Credit, §45 R if your average wage is low enough.  However, either way you still get the Section §106 Health Insurance Premium Deduction and your employees can get the POP §125 deduction for their contribution.
• Employee ONLY plans, (scroll down) so the wife and kids can get Covered CA subsidies – complementary calculation

• SHOP – CCSB  plans are ONLY available thru licensed, trained & certified agents. ^{Covered CA Announcement.}

• SHOP Advantages on HealthCare.gov

   

• How can Covered CA help your Small Business?  VIDEO 

Consumer Links & Resources

• Insure Me Kevin.com  Blog
• Business Tax Credit  Information 
• Section §106 Deduction
• Health Insurance Made Easy 4 page pdf
• FAQ’s Health Care.Gov
• covered ca.com/for small business

Ask about the “Employee #only” plan
Which Allows  Subsidies for Dependents in Covered CA
Avoid the Family Glitch 

• Employees who have dependents seeking subsidy assistance through the individual exchange cannot qualify.
• Spouse/parents enrolled in an employer group ACA qualified plan in most cases disqualifies the subsidy eligibility – Family Glitch –  9.61% Rule
• Most employers do not contribute to the dependent portion of the premium, but because the offer the coverage the dependents technically have “Access” to a ACA qualified plan.
• Dependent coverage is perceived as “unaffordable” to the employee; result = low to no dependent participation
• Why have an employer offer a benefit that is not utilized and unintentionally penalizes??

Solution

• Implement an “employee only” plan; dependents do NOT have “Access” thereby receiving subsidies. ^{9.17.2015  Covered CA Email} 
  • Covered California for small business filed their contract to support this feature.
  • If  the dependents of your employees qualify for Covered CA subsidies – FREE Quote and Subsidy Calculation and the employer is not contributing, then we need to get you into a SHOP program and write it up as employee only, by NOT selecting dependents on the SHOP employer application.  
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Child Pages

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