Small Business Health Options Program (SHOP) FAQ
Guidance for FAQ regarding Premium Calculations and Other
Program Area: Small Business Health Options Program (SHOP)
Question: The FF-SHOP prorating formula will use the number of days in that month as the divisor. Thus, a day of February coverage will cost more than a day in September. Is this statement correct?
Answer: Yes, prorated premiums will be calculated by multiplying the number of days of coverage in the partial month by the premium for 1 month divided by the number of days in the month. Months with 30 or fewer days will effectively cost more than a month with 31 days.
Issued by: Centers for Medicare & Medicaid Services (CMS)
Issue Date: April 14, 2014
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