“Employee Choice” in Federal SHOP Exchanges Delayed

 “Employee Choice” in Federal SHOP Exchanges Delayed

On March 11, HHS announced it is delaying the “employee choice” option in the Small Business Health Options Program (SHOP) Exchanges from 2014 to 2015. This delay will impact states where the Federal government will run the Exchanges and states that are developing their Exchanges in partnership with the Federal government.

The employee choice option will allow employers to determine how much they will contribute toward the cost of employee coverage and offer their employees a choice of Exchange plans from different carriers at a certain metal level (Bronze, Silver, etc.).

In 2014, small employers in states impacted by this delay will choose an Exchange plan and their employees will decide whether or not to enroll in that plan. Employers will not be able to offer their employees a choice of plans until 2015.

Exchanges being developed by states may choose to offer employee choice in 2014, or they may choose to delay implementation of that feature until 2015. The employee choice option will be available in all SHOP Exchanges for plan years beginning on or after January 1, 2015.

Cigna May 13, 2013