Despite heavy recruitment efforts from the Obama administration, insurers have shown lackluster interest in offering plans to small businesses through the health insurance exchanges intended to foster greater competition in that market, according to a report by Politico.
Though many states have seen greater interest from insurers on the individual exchanges, in certain states only one insurer has applied to sell health plans to small employers next year through the Small Business Health Option Program marketplaces, commonly known as SHOPs.
Some analysts believe the tax incentive for small business to use the exchange is limited, sparking little interest among employers and insurers. An authorized delay from HHS allowing exchanges to give employers a one-or-nothing health plan option for employees until 2015 doesn't help stoke enthusiasm among employees, according to the report.
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