A recent update to the Covered California SHOP (Small Employer Health Options Program) will now allow businesses to offer two different levels of benefit packages. Currently, employers can only offer one level of benefits with many different plan options under that specified level/tier.
California is trying to make it easier for employees to choose a plan that fits their needs by giving more options to their employer.
So how does this change affect a small business?
- Employer now has the option to select two contiguous levels of benefits
- Employer can specifies their contribution level
- Employees have the option to choose a benefit plan from either of the two tiers
- Employer contribution is the same across all benefits packages so if an employee chooses a plan on a lower tier that costs less than the employer contribution, the remaining employer contribution can be allocated towards health care premiums or family coverage