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