Which statement correctly describes the Small Business Health Options Program (SHOP) exchanges?

The statement that accurately describes the Small Business Health Options Program (SHOP) exchanges is that SHOP exchanges allow small employers to choose fully insured plans. This is a key feature of SHOP exchanges designed to help small businesses provide health insurance options to their employees.

SHOP exchanges facilitate market access for small employers, allowing them to compare and select from a range of fully insured health plans, which provides them with choices that may suit their employee demographic and budget. These exchanges were created to help small businesses benefit from the same economies of scale that larger employers enjoy regarding health insurance options.

In contrast, plans on SHOP exchanges are not exempt from federal requirements, as all health insurance plans must adhere to the regulations established by the Affordable Care Act. The requirement for employees to contribute at least 50% of premium costs is not a condition of the SHOP exchanges; rather, small employers can determine the extent of employee contributions. Additionally, while SHOP exchanges were originally targeted at employers with up to 100 employees, the more nuanced restriction is that the primary target is indeed employers with fewer than 50 employees, aligning with the intent of supporting small businesses.