Do you qualify for the SHOP Marketplace?
SHOP lets a small employer offer health and dental coverage at any time of year. Four tests decide whether your business qualifies.
New to SHOP? See what the SHOP Marketplace is and how it works.
Size, the offer, participation and location
1. Size
1 to 50 full-time equivalent employees. At least one must be someone other than an owner, an owner’s spouse or family member, or a partner. A spouse who is a genuine employee is treated differently from an owner; see Hiring a Spouse and Group Health Insurance.
2. Who gets the offer
Coverage must be offered to all full-time employees, meaning those who average 30 or more hours a week. Part-time and seasonal employees can be left out or included, your choice.
3. Participation
At least 70% of the employees you offer coverage to must enroll. Employees who decline because they have other coverage are not counted against you. A few states set a different minimum, and the rule is waived from November 15 to December 15 each year.
4. Location
You need an office or employee work site in the state whose SHOP you want to use. Employers with sites in more than one state have separate guidance.
You control the design of the plan
Coverage
Health, dental, or both, and one plan or several.
Contribution
How much of the premium you pay, and whether dependents are covered.
Waiting period
A waiting period for new hires, up to 90 days.
Timing
Coverage can start at any time of year. You do not need to wait for open enrollment.
Before you decide whether SHOP fits
Six questions small employers ask about SHOP eligibility.
Do I have to wait for open enrollment?
No. A qualifying small employer can start offering SHOP coverage at any time of year.
Do part-time employees count?
Employees who average under 30 hours a week do not have to be offered coverage. You may offer it to them if you choose.
What if some employees already have other coverage?
They are not counted as declining your offer when the participation percentage is calculated.
Can I do this without a broker?
You can enroll directly with an insurance company, or work with a licensed broker who compares the options, runs the numbers and handles enrollment.
Is a small group plan outside SHOP an option?
Yes. Many small employers buy small group coverage directly from carriers through a broker. We compare both routes and tell you which looks stronger for your group.
Can the owner be the only employee?
No. At least one full-time equivalent employee has to be someone other than an owner, an owner’s spouse or family member, or a partner.
Ready? Send us your employee count and hours, or talk it through with someone first. Send us your renewal. No cost, no obligation.
General information based on HealthCare.gov eligibility guidance as of October 2026, not legal or tax advice. Participation minimums vary by state.
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