Question: First, please define the “shop exchange” and what does “employee choice model” mean?
Answer: SHOP stands for Small Group Option Program. It’s an separate exchange for small businesses with fewer than 50 employees. The employee choice model allows each employee of a participating small business employer to select any carrier and any product offered by the SHOP Exchange. This is an essential component that will differentiate the SHOP from the outside market and provide an incentive for businesses to purchase coverage through the SHOP Exchange. Employees will have the freedom to select the carrier and plan that is right for them, a benefit that employees of many large businesses and government agencies are already offered.