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Small Business Health Options Program (SHOP) FAQ

Guidance for FAQ regarding Employer/Employee Interaction and Payment

Program Area: Small Business Health Options Program (SHOP)

Question: If state rules dictate that Issuers cannot effectuate SHOP coverage unless they receive payment, will Federal regulation apply or will State rules be applicable in this situation?

Answer: Pursuant to 156.285(c)(4)(iii), for initial payments, FF-SHOP issuers will be required to effectuate coverage unless the issuer has received a cancellation notice from the FF-SHOP prior to the coverage effective date.

Issued by: Centers for Medicare & Medicaid Services (CMS)

Issue Date: April 14, 2014

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