Section 155.720 - Enrollment of employees into QHPs under SHOP for plan years beginning prior to January 1, 2018(a)General requirements. The SHOP must process the SHOP single employee applications of qualified employees to the applicable QHP issuers and facilitate the enrollment of qualified employees in QHPs. All references to QHPs in this section refer to QHPs offered through the SHOP.(b)Enrollment timeline and process. The SHOP must establish a uniform enrollment timeline and process for all QHP issuers and qualified employers to follow, which includes the following activities that must occur before the effective date of coverage for qualified employees: (1) Determination of employer eligibility for purchase of coverage in the SHOP as described in § 155.715 ;(2) Qualified employer selection of QHPs offered through the SHOP to qualified employees, consistent with § 155.705(b)(2) and (3) ;(3) Provision of a specific timeframe during which the qualified employer can select the level of coverage or QHP offering, as appropriate;(4) Provision of a specific timeframe for qualified employees to provide relevant information to complete the application process;(5) Determination and verification of employee eligibility for enrollment through the SHOP; and(6) Processing enrollment of qualified employees into selected QHPs.(c)Transfer of enrollment information. In order to enroll qualified employees of a qualified employer participating in the SHOP, the SHOP must- (1) Transmit enrollment information on behalf of qualified employees to QHP issuers in accordance with the timeline and process described in paragraph (b) of this section; and(2) Follow requirements set forth in § 155.400(c) of this part.(d)Payment. The SHOP must- (1) Follow requirements set forth in § 155.705(b)(4) of this part; and(2) Terminate participation of qualified employers that do not comply with the process established in § 155.705(b)(4) .(e)Notification of effective date.(1) For plan years beginning before January 1, 2017, the SHOP must ensure that a QHP issuer notifies a qualified employee enrolled in a QHP through the SHOP of the effective date of his or her coverage.(2) For plan years beginning on or after January 1, 2017, the SHOP must ensure that a QHP issuer notifies an enrollee enrolled in a QHP through the SHOP of the effective date of his or her coverage.(3) When a primary subscriber and his or her dependents live at the same address, a separate notice of the effective date of coverage need not be sent to each dependent at that address, provided that the notice sent to each primary subscriber at that address contains all required information about the coverage effective date for the primary subscriber and his or her dependents at that address.(f)Records. The SHOP must receive and maintain for at least 10 years records of enrollment in QHPs, including identification of- (1) Qualified employers participating in the SHOP; and(2) Qualified employees enrolled in QHPs.(g)Reconcile files. The SHOP must reconcile enrollment information and employer participation information with QHPs on no less than a monthly basis.(h)Employee termination of coverage from a QHP. If any employee terminates coverage from a QHP, the SHOP must notify the employee's employer.(i)Reporting requirement for tax administration purposes. The SHOP must report to the IRS employer participation, employer contribution, and employee enrollment information in a time and format to be determined by HHS.(j)Applicability date. The provisions of this section apply for plan years beginning prior to January 1, 2018. Section 155.721 is applicable for plan years beginning on or after January 1, 2018. 77 FR 18464 , Mar. 27, 2012, as amended at 80 FR 10869 , Feb. 27, 2015; 83 FR 17066 , Apr. 17, 2018