Covered California for Small Business (CCSB), the state's SHOP exchange, serves:
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Answer & full 3-part explanation (select an option above, or peek)
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.