Connecticut’s health insurance exchange, known as Access Health CT, has selected a New York City nonprofit to run its Small Business Health Options Program (SHOP), which is set to launch Oct. 1.
HealthPass, which has run a commercial health insurance exchange in New York City since 1999, and its technology partner bswift Inc., of Chicago, will managed Connecticut’s SHOP under a 36-month agreement that began April 12.
SHOP, which will serve businesses with 50 or fewer employees under a defined contribution purchasing model, will enable employers to offer plans from multiple insurers to their employees with a fixed dollar contribution, with the employer receiving a single bill.
Connecticut will launch its SHOP despite a recent move by the U.S. Department of Health and Human Service that allows states to delay implementation of the employee-choice feature of SHOP until 2015. In Connecticut, SHOP is scheduled to launch Oct. 1 with coverage taking effect Jan. 1, 2014.
Kevin Counihan, CEO of Access Health CT, said HealthPass was selected after a four-month search. The nonprofit currently provides support for small group insurance to almost 30,000 members from 3,500 organizations.
“Our SHOP products offer broad carrier choice while allowing employers to budget and fix their costs for health insurance,” Counihan said in an April 17 statement. “We are delighted to partner with HealthPass and bswift to enable businesses with 50 or fewer employees to offer these products and experienced administrative and customer service in Connecticut.”
HealthPass plans to open an office in Stamford this summer, where it estimates it will have eight employees to start.