Small Business health insurance exchange may be delayed in Washington State

Washington state SHOP exchange attracts one carrier

By Allison Bell May 16, 2013

 The board of the Washington Health Benefit Exchange is thinking about pushing the start date for the state's Small Business Health Options Program (SHOP) exchange to Oct. 1, 2014.

The board of the state's SHOP exchange, or small business exchange, is considering that option because only one carrier, Kaiser Permanente Northwest, has made a firm commitment to participating in the SHOP exchange, and that carrier has only a limited geographic network, exchange officials said in a report posted on the program's website.

The other option would be to open the SHOP exchange Oct. 1, 2013, with Kaiser acting as the only coverage provider, officials said. That option would serve small businesses in only 5 counties near the Oregon/Washington border near Portland.

 

The discussion in Washington state does not appear to involve the state's individual health insurance exchange.

A number of carriers will be selling non-exchange small-group plans in 2014, officials said.

One question is that it's not sure how small employers would use the PPACA tax credits they are supposed to get through the SHOP exchange system in 2014 if a state does not have a working SHOP exchange in 2014, officials said.

The Internal Revenue Service still has to rule on whether small groups can get the tax credit outside the exchange system, officials said.


The exchange board staff has supported the idea of opening the SHOP exchange Oct. 1 with Kaiser as the only carrier.
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In MY opinion the SHOP exchange is a mine field for any company. One of the laws in the ACA mandates that if an insurance company enters the small business market and fails, the other insurance companies in the small business market must "chip in" to rescue the failed company. How's that for an incentive to jump into the ring? Would you?