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State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5

Covered California for Small Business (CCSB) offers group coverage to employers with...

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Answer & full 3-part explanation (select an option above, or peek)

Why A is correct

Covered California for Small Business (CCSB) is the state's SHOP exchange, serving employers with 50 or fewer employees. Eligible small employers can compare qualified health plans, choose the level of employee contribution, and qualify for the federal small business health care tax credit by purchasing through CCSB. Employers above 50 employees move into the large group market, and the exchange's small business channel is sized accordingly. The 50-employee ceiling is the specific threshold tested in the California exchange portion of the A&H outline, marking this as a California-specific item.

Why the other options are wrong

  • B) Groups of 100 or more are large employers and do not use the small business exchange.
  • C) CCSB is not limited to exactly 25 employees; the ceiling is 50.
  • D) CCSB serves small employers with employees; sole proprietors are served by the individual market.

Memory hook

CCSB caps at 50 — small business, small number.

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