The SHOP Marketplace: Eligibility, Enrollment and Renewal

The Small Business Health Options Program, usually called SHOP, is the Affordable Care Act's marketplace for small employers that want to offer health coverage, dental coverage or both. The plans come from private insurance companies, and buying one is generally the only way a small business can claim the Small Business Health Care Tax Credit.

SHOP has changed since it launched. HealthCare.gov explains that for SHOP plans starting on or after January 1, 2018, employers no longer pick a plan, apply or enroll through HealthCare.gov. Instead, you enroll through an insurance company or with a SHOP-registered agent or broker. This guide walks through who qualifies, how enrollment works now and what to expect at renewal. It is general information, not insurance, tax or legal advice.

What SHOP offers a small employer

HealthCare.gov describes SHOP as flexible on several fronts. You can offer employees one plan or a choice of plans, offer health coverage, dental coverage or both, choose how much you pay toward premiums and whether to cover dependents, and decide how long new employees must wait before enrolling.

You also do not have to wait for an open enrollment period. An eligible employer can start offering SHOP coverage at any time of year. And HealthCare.gov is clear that offering coverage is optional for small businesses: if you have 1 to 50 full-time equivalent employees, you are not required to provide insurance and there is no penalty if you don't.

The four eligibility tests

As of October 2026, HealthCare.gov lists four requirements a business or nonprofit must meet to offer SHOP coverage.

1. Size. You must have 1 to 50 full-time equivalent employees (FTEs), including at least one FTE who is not an owner, partner, spouse or family member of an owner. HealthCare.gov offers an FTE calculator for this test.
2. Offer to all full-time employees. Full-time generally means working 30 or more hours a week. You don't have to offer coverage to part-time employees or seasonal workers, though you can.
3. Minimum participation. HealthCare.gov says that in most states at least 70% of the employees you offer coverage to must enroll or have coverage from another source, such as a family member's job, Medicare, Medicaid, TRICARE or individual insurance. It lists different rates for some states as of 2026: 75% in Iowa, Louisiana, New Hampshire, South Dakota, Texas and Utah, 50% in Tennessee, and 0% in Mississippi. The requirement does not apply to enrollments between November 15 and December 15 of any year.
4. Location. You need an office or employee work site in the state whose SHOP you want to use.

Two size details are worth knowing. HealthCare.gov notes that some states may make SHOP available to businesses with up to 100 employees, and that a business already enrolled in SHOP can renew its coverage even if it grows past 50 employees.

As an owner, you can enroll in the same SHOP coverage you offer, as long as at least one employee who is not an owner, partner or family member also enrolls.

How enrollment works now

The steps below follow HealthCare.gov's SHOP guidance.

1. Check availability in your state. Some states run their own SHOP websites, and some areas may have no SHOP plans at all.
2. Confirm your eligibility. Complete the SHOP Eligibility Determination Form. HealthCare.gov says it takes a few minutes and shows results instantly. Save the completed form and your results, because proof of SHOP eligibility may be required to enroll through an insurance company or to claim the tax credit.
3. Compare plans. Use the SHOP plans and prices tool, and note the plan name, metal level, plan type and plan ID of the plans you like.
4. Decide your offer. Settle on one plan or several, medical or dental or both, your contribution, dependent and part-time eligibility, the coverage start date and any waiting period.
5. Enroll. Work with a SHOP-registered agent or broker, or contact the insurance company and sign up directly. Ask about monthly deadlines, because enrollment steps vary by insurer.
6. Pay the insurer. Premiums go to your insurance company, not to HealthCare.gov, and mid-year changes go through your agent, broker or insurer.

That last point doubles as a fraud check. You do not pay SHOP premiums to the government or to a website, so treat any request to send premiums anywhere other than your insurer, or an agent you have verified, as a warning sign.

Employees, dependents and new hires

After the initial enrollment, employees can join or change SHOP coverage only if they qualify for a special enrollment period because of a life change such as marriage, a birth or an adoption. For employees hired later, HealthCare.gov notes, as of 2026, that you can set a waiting period, but it cannot exceed 90 days.

Dependent coverage is generally optional, although some states require it, so check with your state department of insurance. If dependents decline your offer they can apply for individual Marketplace coverage, but HealthCare.gov cautions that they may not qualify for premium tax credits or cost-sharing reductions.

Your offer can also affect employees' own Marketplace savings. HealthCare.gov explains that employees may still qualify for premium tax credits if the job-based plan you offer is not considered "affordable" for them, a test based on the employee's share of the monthly premium for the lowest-cost plan you offer. The affordability percentage changes each year: IRS Revenue Procedure 2025-25 sets it at 9.96% for plan years beginning in 2026, and IRS Revenue Procedure 2026-26 sets it at 10.22% for plan years beginning in 2027. Check the current figure before setting contributions.

Businesses with more than one location

If you have employees in more than one state, HealthCare.gov says you enroll in the SHOP of the state where your primary business site is located. You can then either choose one plan with a multistate or national provider network for everyone, or offer different SHOP plans in each state where employees work. With separate state offers, each location's roster is counted separately for the participation rate and you verify eligibility in each state.

You can establish only one SHOP offer per employer identification number (EIN) in each state. If you own several businesses, controlled group rules apply when you count FTEs, and each EIN needs its own offer. Remote employees can be assigned to your primary business address or treated as separate locations.

Renewal, and what if there are no SHOP plans

HealthCare.gov's SHOP guidance, as of October 2026, suggests contacting your insurance company, agent or broker about 45 to 60 days before your current SHOP coverage ends. Ask when your renewal enrollment is due, how long employees have to accept, and when the first premium is due.

If no SHOP plans are available in your area, you may still be able to buy a small-group plan through an agent, broker or insurer, but HealthCare.gov says it may not count as SHOP coverage and you generally will not be able to claim the tax credit. The IRS has a limited exception for some employers in counties without SHOP plans; see our guide Small Business Health Care Tax Credit: Who Qualifies and How.

Where to get help

For questions about SHOP itself, HealthCare.gov lists the SHOP Call Center at 1-800-706-7893 (TTY: 1-888-201-6445). For plan choices, a SHOP-registered agent or broker can help you check eligibility, compare plans and enroll, and HealthCare.gov says that in general you won't pay more for using one. For questions about state rules or a complaint about an insurer, contact your state department of insurance; the NAIC website lists contact information for each state's department. For tax questions, talk with a qualified tax professional.

Key takeaways

• SHOP is generally for employers with 1 to 50 FTEs, including at least one employee who is not an owner or family member.
• You must offer coverage to all full-time employees and, in most states, meet a minimum participation rate that is waived from November 15 to December 15.
• Since 2018 you enroll through an insurer or a SHOP-registered agent or broker, after completing the SHOP Eligibility Determination Form.
• Keep proof of SHOP eligibility; you may need it to enroll and to claim the tax credit.
• Premiums are paid to the insurance company, never to HealthCare.gov.

Sources

• HealthCare.gov, Overview of SHOP: Health insurance for small businesses
• HealthCare.gov, Find out if your small business qualifies for SHOP
• HealthCare.gov, How to offer SHOP health insurance to your employees
• HealthCare.gov, SHOP coverage for multiple locations and businesses
• HealthCare.gov, How to work with a SHOP-registered insurance agent or broker
• National Association of Insurance Commissioners, Insurance Departments
• Internal Revenue Service, Revenue Procedure 2025-25 (required contribution percentage for 2026)
• Internal Revenue Service, Revenue Procedure 2026-26 (required contribution percentage for 2027)