PassSprint

One rule, 2 ways the exam asks it. Same knowledge point, different phrasing — work through all of them, because the exam rarely reuses the wording.

State RegulationsCA specificVerified · outline & fact-checked · Sep 2026Difficulty 2/5

Covered California for Small Business (CCSB) serves employers with:

Select an option to reveal the answer and the full 3-part explanation — free, no signup.

Answer & full 3-part explanation (select an option above, or peek)

Why A is correct

Covered California for Small Business (CCSB) is the SHOP (Small Business Health Options Program) marketplace in California, serving employers with up to 50 employees. The federal small-employer premium tax credit — available to employers with 25 or fewer qualifying employees — generally requires the employer to purchase coverage through CCSB. Employers above the small-group line buy in the private large-group market, and participation in CCSB is voluntary, not mandatory. The size threshold tracks the California small-group market definition exactly here.

Why the other options are wrong

  • B) CCSB is designed for small employers, not for employers with more than 100 employees. CCSB serves employers at or below the small-group size line, not employers above that line.
  • C) The 50-employee limit defines CCSB eligibility; there is a size cap, so 'any number of employees' is wrong. The 50-employee cap defines the CCSB eligibility boundary quite clearly here.
  • D) There is no 500-employee minimum, and employers are not required to participate in CCSB. There is no 500-employee minimum, and employer participation in CCSB is entirely voluntary instead of mandatory.

Memory hook

CCSB = the small-business marketplace door, sized for up to 50 employees — and the route to the employer tax credit.

State RegulationsCA specificVerified · outline & fact-checked · Sep 2026Difficulty 2/5

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

Select an option to reveal the answer and the full 3-part explanation — free, no signup.

Answer & full 3-part explanation (select an option above, or peek)

Why B is correct

Covered California for Small Business (CCSB) is the state exchange segment that serves small businesses with up to 50 employees. It allows eligible small employers to offer qualified health plans to their workers, and, consistent with the small employer credit rules, purchasing through CCSB is the channel through which the federal small business tax credit may be claimed. The 50-employee ceiling is stated directly in the PPACA exchange material (AH-III.C.5) and is distinct from the small group threshold in the private market. The number is a specific fact the examination expects candidates to recall.

Why the other options are wrong

  • A) Twenty-five employees is the cutoff for the federal small employer tax credit, not the CCSB employer-size ceiling.
  • C) One hundred employees is not the CCSB threshold, which is set at 50 employees for the small business exchange.
  • D) Employers with 101 or more employees are large groups and do not purchase coverage through CCSB.

Memory hook

CCSB caps membership at 50 employees.

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