CHA News Article

Comments on Covered California’s Second Draft Qualified Health Plan Model Contract Due April 15
Pinnacle chosen to administer exchange’s Small Business Health Options Program

Covered California yesterday released the second draft of its Qualified Health Plan Model Contract, which Covered California will enter into with qualified health plans. While the second draft incorporates many comments from stakeholders and has been significantly revised from the initial draft released in January, Covered California welcomes additional comments and suggestions. Stakeholders should send comments to by close of business April 15. Covered California requests that stakeholders make comments as specific as possible and provide “red lines” of suggested changes along with a rationale. For more information about the qualified health plan solicitation, visit

Covered California also announced yesterday it has approved Irvine-based Pinnacle Claims Management, Inc. to administer its Small Business Health Options Program (SHOP). SHOP will allow small employers to provide their employees with a choice of health plans that generally has been available only to larger employers. Small businesses with 25 or fewer full-time equivalent employees paid an average annual wage of less than $50,000 may be eligible to receive a 50 percent small business health care tax credit for coverage purchased through SHOP. 

California is one of a few states nationally that will offer small businesses an array of health insurance options for their employees beginning this fall. The SHOP contract is supported by federal funds under the Affordable Care Act and continued funding from Covered California administrative revenue starting in 2015. For more information about SHOP and the Pinnacle announcement, see the complete Covered California press release