Covered California for Small Business (CCSB) serves employers with how many employees?

Why C is correct

Covered California for Small Business (CCSB) is the SHOP-style marketplace serving small employers with 50 or fewer full-time-equivalent employees. Through CCSB, small employers can offer QHPs to their employees, and qualifying employers with 25 or fewer employees may be eligible for the federal small-business health care tax credit if they purchase through CCSB. The 50-employee threshold tracks California's small-group definition. The 50-employee line tracks the federal small-group definition for the SHOP market, with the exchange serving as the small-business marketplace. Eligible employers may choose a plan or allow employees to select from multiple options, and qualified small employers may claim the federal health care tax credit.

Why the other options are wrong

• D) 100 employees exceeds the CCSB threshold; the exchange serves groups of 50 or fewer. The CCSB eligibility line is 50 or fewer employees; 100 exceeds the statutory small-employer threshold for the program.
• A) CCSB serves small employers, not large employers of 500 or more. Employers with 500 or more employees are large employers outside the CCSB market entirely. Such employers must instead obtain coverage through the large-group market using their own insured or self-funded arrangements.
• B) The threshold is 50 or fewer employees, not exactly 25; 25 or fewer relates to the federal tax credit. There is no fixed requirement of exactly 25 employees; the program covers employers of up to 50 employees regardless of the exact count.

Memory hook

CCSB = small business club, 50 employees or fewer. Tax credit sweet spot: 25 or fewer.

Why A is correct

Covered California for Small Business (CCSB) is the state-based small business exchange that serves employers with up to 50 employees, consistent with the ACA's definition of a small employer for exchange purposes. Employers in this size range can shop for qualified small group health plans through CCSB, and smaller employers may qualify for the federal small business tax credit when purchasing there. This CCSB eligibility threshold is a California exchange fact examined under AH-III.C.5.

Why the other options are wrong

• B) Employers above 50 employees are considered large groups and cannot use CCSB.
• C) Twenty-five employees is the threshold for the federal tax credit, not the CCSB service limit.
• D) CCSB is not limited to two employees; it serves up to 50.

Memory hook

CCSB = 50 and under; above that, the large group market begins.