Initially created with the goal of helping small businesses comply with the requirements of the Patient Protection and Affordable Care Act (PPACA), the Small Business Health Options Program (SHOP) has not been meeting expectations.
According to Don Donner, CEO and president of the National Federation of Independent Business (NFIB), "Almost no one is using the SHOP exchange, according to the government's own enrollment data, and to the extent that there are subsidies available in the form of tax credits, they are complicated, temporary, and too small to offset the costs."
A February 26, 2015, letter from Steve Chabot (R-Ohio), chair of the U.S. House of Representatives Committee on Small Business, to Sylvia Burwell, secretary of the U.S. Department of Health and Human Services, highlights these concerns, with a focus on problems associated with incorrect SHOP tax forms that were recently sent out by HHS.
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Rep. Chabot said, in part, "Of particular concern to me as chairman of the House Small Business Committee is how this most recent snafu impacts America's small business owners. I am writing to request how many, if any, of the incorrect forms have gone to small business owners who utilized the Small Business Health Options Program (SHOP) health insurance exchanges."
Rep. Chabot's questions to Secretary Burwell were:
1 – What is the number of small business owners who purchased insurance on the SHOP exchange and were affected?
2 – When did you learn of any errors in SHOP forms?
3 – What recourse will be available to individuals who have already filed their taxes with incorrect information provided by your agency? Will they be forced to refile or offered some other less burdensome option?
4 – How long will it take to get the correct information out to affected individuals?
5 – What are you immediate plans to ensure something of this magnitude does not happen again?
On March 23, 2015, Rep. Chabot followed up with a second letter to Secretary Burwell, asking two additional questions:
1 – How many of these delayed 80,000 corrected forms will be sent or made available to small business owners who purchased insurance on the Small Business Health Options Program (SHOP)?
2 – What effort is the Department making, in conjunction with the Internal Revenue Service, to ensure that taxpayers will be able to file accurate and timely tax returns if they have received incorrect information concerning their health care coverage from HHS?
Rep. Chabot went on to add, "The Administration touted the SHOP as a competitive and convenient location for small businesses to compare prices and purchase affordable and effective health insurance coverage for their employees and families. However, I am concerned that this most recent error may have compounded the problems small business owners have faced when utilizing the SHOPs, such as cancelled plans, higher premiums, and less comprehensive coverage options."
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