What happens if an employer no longer meets SHOP requirements?

If an employer no longer meets the Small Business Health Options Program (SHOP) requirements, they lose access to SHOP coverage. This is primarily because the SHOP marketplace is specifically designed for small businesses that satisfy certain eligibility criteria, including size, number of employees, and income levels. When an employer fails to comply with these criteria—whether by expanding beyond the maximum number of employees allowed or by not meeting other stipulated conditions—they cannot maintain their participation in the SHOP program. Consequently, they must explore other options for providing health insurance benefits to their employees, which can include private insurance plans or other market alternatives.

In this context, other options do not fully capture the implications of losing SHOP eligibility: limited coverage is not an option for employers who no longer qualify; transitioning to a private plan may be necessary, but it is not a direct consequence of failing to meet requirements, and fines are generally associated with noncompliance in other areas rather than simply losing eligibility for SHOP. Therefore, the correct outcome is the loss of access to SHOP coverage altogether when requirements are not met.