What is SHOP?
SHOP (Small Business Health Options Program) is the ACA Marketplace for small employers. Through SHOP you can:
- Offer health coverage, dental coverage, or both
- Offer one plan, or let employees choose from several
- Start any time of year, without waiting for Open Enrollment
- Set a waiting period for new hires of up to 90 days
In most states, employers sign up through an insurance company or a SHOP-registered agent or broker, not on HealthCare.gov.
To use SHOP, you generally must:
- Have 1 to 50 full-time equivalent (FTE) employees, or up to 100 in some states. Part-time hours count toward your FTE total. Owners, partners and their family members don't count.
- Offer coverage to all full-time employees (those working 30 or more hours a week).
- Have an office or work site in the plan's service area.
- Meet the minimum participation rate. This is often 70% of eligible employees. If you enroll between November 15 and December 15, insurers can't require it.
Can my business get a tax credit?
You may qualify for the Small Business Health Care Tax Credit. It can cover up to 50% of the premiums you pay, or up to 35% for tax-exempt employers. To qualify, you must:
- Have fewer than 25 full-time equivalent employees
- Pay average annual wages below the IRS limit. For 2025 the limit is under $67,000 per FTE. It goes up each year.
- Pay at least half of the premium for employee-only coverage
- Offer a plan through SHOP
The credit is largest for employers with 10 or fewer FTEs and average wages of about $33,000 or less (2025 figure). It gets smaller as either number goes up. You can claim it for two tax years in a row. File IRS Form 8941, and ask your tax professional how it applies to you.
You don't have to offer coverage to part-time employees, but their hours still count when you figure your FTEs. Seasonal workers who work 120 days or less a year are not counted.
What kinds of plans can I offer?
SHOP plans come in four metal levels. Each covers the same essential health benefits. The difference is how costs are split between the plan and the people enrolled:
| Level | Plan's average share of covered costs |
|---|---|
| Bronze | about 60% |
| Silver | about 70% |
| Gold | about 80% |
| Platinum | about 90% |
These are averages across all people in a plan, not what any one person pays. Bronze plans usually have lower premiums and higher deductibles. Platinum plans usually have higher premiums and lower deductibles. Every plan has a yearly out-of-pocket limit. For 2027 it can be no more than $12,000 for one person or $24,000 for a family.
All SHOP plans must cover pre-existing conditions and include preventive care at no cost when you use in-network providers.
Can employees choose their own plan?
Yes, if you want. You can offer one plan, or let employees choose from more than one. What's available depends on your state and insurer. An agent can show you the options in your area.
Last reviewed October 2026. Rules can change and can vary by state; this page is general information, not legal or tax advice.