Covered California Small Business Brings New Options to California Brokers

Executive Spotlight

This article is adapted from a California Broker Magazine Executive Spotlight recording featuring Phil Calhoun, CEO of California Broker Magazine, in conversation with Dan Tyler, Vice President of Sales at Covered California for Small Business. A California native and University of California, Santa Barbara graduate, Tyler brings more than two decades of carrier and small group market experience to CCSB, including 20 years with Health Net before joining CCSB in 2019.

A small group career built on speed and service

Tyler’s journey through the health insurance industry has spanned nearly every major sales segment. He launched his career in small group sales, moved into large group sales, stepped into small group leadership, and later led both large group and individual and family plan teams. After experiencing the full spectrum, he ultimately returned to the segment that feels most like home—small group leadership.

“I’ve always gravitated back to small group,” Tyler said. “I love working with brokers and GAs, and the faster sales cycle really suits the way I like to work.”

While large-group negotiations can stretch six to nine months, small-group cases often move from initial conversation to submission within days. That pace makes service and administration essential. Tyler now leads CCSB’s 24-person statewide team, including eight outside sales representatives supported by a dedicated inside sales unit. “We’re here to support you,” Tyler said. “You have designated sales support as a broker, and our account managers partner with you on renewals and any issues that come up.”

A marketplace model for employer choice

Covered California for Small Business (CCSB) helps small employers manage benefit costs while offering employees a broad choice of carriers, plan designs, and metallic tiers. Tyler noted that CCSB now serves nearly 10,000 employers and approximately 82,000 members.

“It’s a tough job for employers to figure out their benefits package every year,” Tyler said. “They’re constantly balancing cost pressures with employee needs.”

CCSB simplifies administration by consolidating coverage into a single bill with no billing or administrative fees. Its online portal supports real-time enrollment, billing and renewal updates, and the organization is exploring expanded API connectivity to reduce paperwork and minimize data-entry errors. “We’re reviewing new technologies and opportunities to make sure we stay ahead of the market,” he said.

New carrier options for 2027

CCSB currently offers Kaiser Permanente, Blue Shield of California, and Sharp Health Plan. Beginning January 2027, Western Health Advantage will also be available in the greater Sacramento and North Bay regions, giving brokers in those markets an additional carrier to consider in their small group recommendations. High-deductible health plan options are available through Kaiser Permanente and Blue Shield of California, and Tyler noted that Western Health Advantage’s plan designs will become clearer once rates and benefits are released.

“For 2027, Tyler sees healthcare cost pressure, inflation, and rate increases as the issues most likely to dominate employer conversations.”

He encouraged brokers to stay mindful of regional market differences and provider access. Currently, an employer’s location determines which products employees can enroll in. For example, an employer based in Los Angeles with employees in San Diego cannot currently offer Sharp Health Plan to those San Diego employees through CCSB. Tyler noted that the Department of Managed Health Care has developed new live-work rules that change how carriers and exchanges handle employees working outside a group’s primary location. CCSB will be updating their rules next year, and those rules will influence how products are assigned across regions. “More to come as the market sees how other insurers deal with the new rules,” said Tyler.

A more consultative renewal conversation

For 2027, Tyler sees healthcare cost pressure, inflation, and rate increases as the issues most likely to dominate employer conversations. He urged brokers to meet the moment not merely by identifying the lowest premium, but by becoming more rigorous advisors. “Brokers need to be well informed, to be able to have honest discussions as far as the reasons for healthcare inflation and provide a lot of information and solutions to their clients,” said Tyler. “They need to be consultative and not just benefit slingers.”

That approach requires examining the client’s actual utilization patterns, provider preferences, network needs, contribution strategy, and out-of-state employee population. A group paying for a broad network may be able to lower costs if its employees are already using providers in a performance network.

Tyler encouraged brokers to match network options to client utilization, citing Sharp Health Plan’s Premier and Performance networks and Blue Shield’s Access+ and Trio networks. For groups with employees outside California, Blue Shield’s BlueCard network is an excellent solution. He also urged brokers to highlight often overlooked carrier discounts, including savings on gyms, chiropractic care, massage therapy, and identity protection. “If you can save an employee $30 a month from a gym membership or $40 from a chiropractic appointment, that is meaningful to them,” said Tyler.

A tax credit prospecting opportunity

One of CCSB’s key broker differentiators is the Federal Small Business tax credit, which Tyler described as both a client savings opportunity and a powerful prospecting tool. CCSB is California’s only option for eligible groups seeking the credit. Employers must have fewer than 25 full-time equivalent (FTE) employees and average annual employee wages below $67,000; owner and partner compensation is excluded, making some professional offices strong candidates.

The sliding-scale credit can cover up to 50 percent of the employer’s health-insurance contribution for two years. Tyler advised brokers to share CCSB’s materials and let the employer’s tax professional determine eligibility and credit amounts. “Let the accountant run the numbers,” Tyler said.

Timing is also important. Because the credit is based on calendar-year contributions, Tyler noted that employers may benefit from ensuring they receive the credit for a full January-through-December cycle. Doing so allows them to maximize the credit over two complete calendar years rather than starting mid-year and losing part of the eligible contribution window.

How to engage CCSB

Brokers can work with CCSB’s statewide sales and account-management teams for exchange education, quoting, case placement, client presentations, and renewal guidance. They may use a preferred general agent or work directly with CCSB. “If cases are placed through a GA or direct, it is absolutely the same to us,” said Tyler. “We support the GA channel 100 percent.”

For fourth-quarter enrollment support, client meetings, or Spanish-language resources, Tyler encouraged brokers to contact their CCSB representative early. “The role of the broker has never been more important,” he said. “They’re the ones helping employers navigate cost, quality, access to care, and the overall employee experience.”

Learn More: coveredca.com/forSmallBusiness