California is one of the states that still treats small-group coverage as a 1-to-100-employee market, not a 1-to-50 market. The California Department of Insurance's small-employer page addresses employers with 1 to 100 employees. Covered California for Small Business, in its 2026 employer guide, describes CCSB as a place where employers with 100 or fewer full-time-equivalent employees can obtain health and dental plans, and states that CCSB is the only place in California where small businesses can qualify for the federal Small Business Health Care Tax Credit.
The employer base
The Census Bureau's Statistics of U.S. Businesses for 2022 (state detailed-size file, released April 10, 2025) counts 807,151 California employer firms with fewer than 50 employees, out of 844,605 employer firms in the state, with 4,337,859 paid employees at those under-50 firms and 16,032,440 at all California employer firms. Under-50 firms were 95.6% of California employer firms in that file. California also has a large 51-to-100 band that remains in the small-group market under the 1-to-100 definition; that band is not separately totaled as "51–100" in the SUSB classes used here, so we do not invent that count.
What official surveys say about cost
MEPS-IC 2025 Table II.A.2 reports that 35.1% of private-sector establishments at California firms with fewer than 50 employees offered health insurance, compared with 95.1% at firms of 50 or more (47.8% of all California establishments). At under-50 firms, average annual premiums were $9,149 for single coverage and $23,389 for family coverage, with average employee contributions of $1,602 (single) and $7,166 (family). Those are statewide averages, not a Los Angeles, Bay Area, or San Diego quote. See the cost of small-business health insurance.
Who sells small-group coverage, on and off CCSB
The official 2026 Covered California for Small Business employer guide and plan-offerings materials name three participating health plan companies: Blue Shield of California, Kaiser Permanente, and Sharp Health Plan. Availability still varies by CCSB pricing region. That is the official CCSB participating-issuer list we can cite for 2026. It is not a complete list of every carrier that may sell off-exchange small-group coverage in California. The California Department of Insurance tells small employers they can also call an insurance company or a licensed agent or broker, and CDI maintains company information. We will only compare products that can be issued for the California rating areas and any other states on your roster, and we will not describe a CCSB issuer — or any other carrier — as endorsing Ares or as a carrier we are appointed with unless that is separately documented.
CDI also points employers to a primer and to CCSB. Enrolling through CCSB is the path Covered California describes for the federal small-business tax credit in California.
Continuation when someone leaves the plan
Federal COBRA generally applies to employers with 20 or more employees. The California Department of Insurance's continuation-coverage page describes COBRA, Cal-COBRA, conversion, and HIPAA as the four continuation categories in the state, and states that if your employer has 20 or more employees it must follow COBRA rules, with COBRA benefits generally available for up to 18 months and possibly extended to 36 months under certain circumstances. The same page describes Cal-COBRA as a related continuation option, including as an extension after COBRA in some cases. It does not, on the page fetched for this update, state a complete employer-size rule for Cal-COBRA in a single sentence we can quote with confidence, so we will confirm the current Cal-COBRA size and duration against CDI at proposal time rather than invent those figures. See COBRA for employers.
How we help a California employer
You send a roster, work locations, what you offer today, and your renewal date if you have one. We confirm the market you sit in and compare a fully insured small-group plan, SHOP or a state small-business marketplace where one applies, a level-funded design, an ICHRA or QSEHRA, or coverage arranged through a PEO. The method is on how to compare group health plans. Request a proposal or call (813) 540-1299.Frequently asked questions
Is a company with 75 employees still a small group in California?
CDI addresses small employers as having 1 to 100 employees, and CCSB's 2026 guide describes employers with 100 or fewer FTEs. A 75-employee California group can still be in the small-group market under that definition, unlike in a 1-to-50 or 2-to-50 state. We will confirm headcount under the California and federal counting rules that apply to your plan.
Does Ares have a California office?
No. The only address on this site is 5701 E Hillsborough Ave, Tampa, FL 33610. Our agents are licensed in all 50 states, including California.Which carriers sell small-group plans through Covered California for Small Business in 2026?
The official 2026 CCSB materials name Blue Shield of California, Kaiser Permanente, and Sharp Health Plan. Off-exchange options may differ and should be confirmed with CDI or the issuer. We will only compare products that can be issued for your rating areas.
Can we claim the Small Business Health Care Tax Credit on an off-exchange California plan?
Covered California's 2026 CCSB employer guide states that CCSB is the only place in California where small businesses can qualify for that federal credit. See the tax credit page and the calculator in Section C of this file.
What does coverage cost for a small California employer?
MEPS-IC 2025 under-50 averages for California are $9,149 (single) and $23,389 (family) a year, among enrolled employees at offering establishments. Your quote is built from your census.
Ready for a proposal?