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

Issue Date: August 28, 2013

Program Area: Small Business Health Options Program (SHOP)

Question: How will the minimum participation rate be effected if changes are made that impact the eligibility of the group? For example, what will happen if an employee cancels before group coverage is effectuated, resulting in a reduced participation rate?

Answer: Employers that no longer meet FF-SHOP eligibility criteria as described in 45 CFR 155.710 of the HHS Final Exchange Establishment Rule (http://www.gpo.gov/fdsys/pkg/FR-2012-03-27/pdf/2012-6125.pdf) may no longer participate in the FF-SHOP. Minimum participation rates are calculated once a year at the time of initial group submission and subsequently at the time of renewal.

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