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