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

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

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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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