On May 31, 2013, the Centers for Medicare & Medicaid Services (CMS) released the Small Business "SHOP" Marketplace final rule, and SHOP application forms for small businesses. This article provides an overview of the SHOP Marketplaces and sample SHOP application forms for small businesses and employees.

As small business health insurance costs continue to rise, employers are looking for ways to offer health benefits at a lower price. An online alternative, often referred to as a defined contribution health plan, allows an employer to name its price. Rather than paying the costs to provide a specific small business health plan (a "defined benefit"), employers instead fix their costs by establishing a monthly dollar amount (a “defined contribution”) that employees choose how to spend.

A recent study by LIMRA found that only 47 percent of small businesses with 2-99 employees in the United States offer benefits to their employees.  According to the U.S. Census Bureau, 98 percent of businesses in the U.S. have fewer than 100 employees, accounting for approximately 35 percent of the U.S. workforce.

With health care reform taking full effect in 2014, health reimbursement arrangements and defined contribution health benefits are expected to become a mainstream employee benefit. A Health Reimbursement Arrangement, or HRA, is an IRS approved, employer-funded, tax advantaged employer health benefit plan that reimburses employees for out of pocket medical expenses and individual health insurance premiums. A common question about HRAs for a small business is "Can an owner participate in an HRA?" 

Health "insurance" reform legislation, the Affordable Care Act (ACA), was signed into law March 23, 2010 and provides the most sweeping changes we have seen to health insurance in the United States.  Now that the entire ACA has passed constitutional muster by the Supreme Court, small business owners need to familiarize themselves with ACA provisions that directly impact their bottom-line.

Earlier this month, SurePayroll announced December results for its monthly Small Business Scorecard showing a promising trend of small business owners expressing optimism about the economy. SurePayroll's Small Business Scorecard optimism score climbed to 63 percent in December compared to 53 percent in the previous two months, and up from only 33 percent in September. This would indicate a rise in small business hiring in 2012.

The percentage of small businesses in the United States offering health benefits dropped from 47% in 2000 to 42% in 2009.

In July 2011, the National Federation of Independent Business (NFIB) released a new study, "Small Business and Health Insurance: One Year After Enactment of PPACA", focused on the affect health reform has had on employee health benefits. The study predicts that less than 25% of small businesses will offer group health insurance in 2014.  

Colorado General Assembly Passes Senate Bill (SB) 11-019 Encouraging Defined Contribution Health Plans and Health Reimbursement Arrangements (HRAs).