QUESTION

I’m interested in SHOP coverage but there aren’t any participating insurers in my area (or there’s only one insurer participating but I don’t like them). Can I still get SHOP coverage, and can I still get the tax credit?

Coverage for small employers | Changes to Small Employer Coverage
ANSWER

In most states, you can purchase small business health insurance coverage outside of SHOP coverage. However, you will not be eligible for the small business health insurance tax credit if you choose to purchase non-SHOP coverage.

The District of Columbia and Vermont allow individuals and small groups to purchase coverage only through their state-based health insurance marketplace. (IRS, Understanding the Small Business Health Care Tax Credit).

Individuals with no coverage
Individuals with coverage
Coverage for small employers
Post enrollment issues