State RegulationsTX specificDifficulty 1/5
What is the purpose of the Small Business Health Options Program operated within the health insurance Marketplace?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
ACA Section 1321 directs each exchange to operate a Small Business Health Options Program so that eligible small employers can select coverage and offer choices to their employees through the exchange. Individuals who are not employed use the individual Marketplace instead, and Medicare coverage and self-funded large employer plans are outside the SHOP entirely.
Why the other options are wrong
- A) Medicare is a federal program for the aged and disabled and is not offered through the SHOP.
- B) Self-funding is a financing decision made outside the exchange; the SHOP is not a vehicle for large employer self-funded arrangements.
- D) Unemployed individuals are served by the individual Marketplace, not by the SHOP, which is an employer-facing program under ACA Section 1321.
Memory hook
SHOP means small employers shopping for their employees.