State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Covered California is best described as:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Covered California is the state health benefit exchange established under the ACA. It operates an individual marketplace where consumers can purchase Qualified Health Plans with premium tax credits (APTC) and cost-sharing reductions, and it also administers Covered California for Small Business (CCSB) for employers with up to 50 employees. Agents must be certified by Covered California to sell exchange QHPs.
Why the other options are wrong
- B) Covered California is a state exchange for QHPs, not a federal program that pays Medicare Part D premiums.
- C) Covered California does not rate workers' compensation; it is the health insurance exchange.
- D) Covered California is an exchange/marketplace, not a private insurer selling limited indemnity products.
Memory hook
Covered California = the state's insurance mall: QHPs for people and small firms, subsidies at the door.