Which statement correctly describes Covered California for Small Business (CCSB)?

Why A is correct

CCSB is the small business exchange in California serving employers of up to 50 employees. Small employers that want the federal small business health care tax credit — available to employers with 25 or fewer employees who meet the average wage test — must purchase QHP coverage through CCSB to qualify. CCSB gives small businesses access to exchange-certified plans with employee choice among qualified offerings. It is a commercial marketplace distinct from Medi-Cal, and it sells licensed QHPs rather than self-funded association arrangements, which California prohibits as health coverage.

Why the other options are wrong

• B) CCSB targets small employers, not groups above 100 employees; large groups purchase outside the small business exchange, so this answer inverts the size limit.
• C) CCSB is a commercial marketplace for employer coverage, not a Medi-Cal program for the self-employed, so this answer mislabels a private market product.
• D) California prohibits self-funded association plans marketed as health coverage to small employers; CCSB sells licensed QHPs, so this answer describes a product the state bans.

Memory hook

CCSB = the small-business gate to QHPs and the tax credit. Up to 50 workers, exchange-certified plans only.

Why A is correct

Covered California for Small Business is the SHOP, Small Business Health Options Program, exchange established for small employers. It serves employers with 50 or fewer employees, who can compare and purchase qualified health plans for their workers and may be eligible for the small employer premium tax credit when purchasing through CCSB. The exchange was designed to give small businesses the kind of choice and competition that large employers already have. Larger employers generally purchase coverage directly from carriers and are subject to the employer shared responsibility rules rather than SHOP enrollment.

Why the other options are wrong

• B) The SHOP exchange is limited to small employers of 50 or fewer employees. Larger employers do not buy through CCSB; they contract directly with carriers in the large group market.
• C) Self-employed individuals buy individual coverage through the Covered California individual market. CCSB is the small business arm and serves employers and their employees, not self-employed individuals.
• D) CCSB is open to all qualifying small employers, including for-profit businesses, partnerships, and sole proprietors with employees. It is not restricted to nonprofits or government bodies.

Memory hook

CCSB = the small-business counter at Covered California: 50 employees or fewer.

Why A is correct

Covered California for Small Business (CCSB) is the SHOP, Small Business Health Options Program, exchange serving California employers with 50 or fewer employees. Eligible employers can purchase Qualified Health Plans and use them to provide coverage to their employees, and employers with 25 or fewer employees may qualify for the federal small business tax credit when they purchase through CCSB. CCSB is limited to small employers; large employers, Medicare beneficiaries, and self-funded government plans are handled through other channels. It is the only California venue where the SHOP-based federal small business tax credit can be claimed for employer-sponsored coverage.

Why the other options are wrong

• B) Large employers are not served by CCSB; the SHOP exchange is capped at 50 or fewer employees in California.
• C) CCSB serves employers and their employees, not Medicare beneficiaries, who choose Medicare Advantage or Medigap instead.
• D) Self-funded government plans are not purchased through CCSB, which offers insured QHPs to small employers.

Memory hook

CCSB = SHOP for small shops: 50 or fewer employees, one stop for small business QHPs.