California Choice
CaliforniaChoice is a private multi-carrier health insurance exchange, founded in 1996, that lets California small businesses offer employees a choice of seven health plans and ancillary benefits under a single defined-contribution program distributed through licensed brokers.
- Company typePrivate
- Founded1996
- HeadquartersOrange, United States
- Headcount251–500
- GTM typeB2B
- OfferingServices
What California Choice does
CaliforniaChoice is a private multi-carrier health insurance exchange, operated by Choice Administrators Insurance Services, Inc., a subsidiary of the Word & Brown Companies, that enables California small businesses to offer employees a choice among seven health plans (HMO, PPO, and HSA options) under a single administrative program. Founded in 1996 as the first state-approved private exchange of its kind in California, the platform aggregates offerings from Anthem Blue Cross, Health Net, Kaiser Permanente, Sharp Health Plan, Sutter Health Plan, UnitedHealthcare, and Western Health Advantage, and packages them with dental, vision, chiropractic, acupuncture, and life insurance coverage. Supporting technology includes a broker and employer portal with online quoting, an enrollment platform, plan comparison and provider/Rx search tools, and an online account management system; the company also holds HITRUST Risk-based Two-year (r2) Certification for information security (valid through December 9, 2026).
The business operates on a broker-centric distribution model: licensed California insurance brokers and agents sell CaliforniaChoice to small employers and earn commissions on all lines of coverage. CaliforniaChoice earns a tiered monthly administrative fee from employer groups ($30/month for 1-8 employees, $40/month for 9-50, $50/month for 51+) and receives commissions from participating carriers on premiums. The employer side uses a defined contribution model in which the employer sets a fixed monthly contribution locked for 12 months, and employees apply that contribution to whichever of the available plans they select, with any difference paid via payroll deduction. The company is headquartered in Orange, California, employs 251-500 people, and is led by CEO Michael Close alongside co-founders John M. Word III and Edward J. "Rusty" Brown Jr.
California Choice firmographics
Firmographics- Name
- California Choice
- Legal name
- Choice Administrators Insurance Services, Inc.
- Website
- https://calchoice.com
- Company type
- Private
- Founded year
- 1996
- Operating status
- Operating
- Headcount range
- 251–500 employees
- Short description
- CaliforniaChoice is a private multi-carrier health insurance exchange, founded in 1996, that lets California small businesses offer employees a choice of seven health plans and ancillary benefits under a single defined-contribution program distributed through licensed brokers.
- Ownership category
- akta.pro rank
California Choice industry classification
Industry- Product category
- Small Business Health Insurance Exchange
- NAICS
- Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds (524292), Health and Welfare Funds (525120), Insurance and Employee Benefit Funds (5251)
- SIC
- Insurance Agents, Brokers & Service (6411), Hospital & Medical Service Plans (6324), Accident & Health Insurance (6321)
- akta.pro primary industry
- Small Group Health Insurance (2–50/100) (FSAIAFAD)
- akta.pro secondary industries
- Association & PEO Group Health Plans (AHP/PEO-Sponsored) (FSAIAFAH), Eligibility, Enrollment & Benefits Administration (HLAEALAH), Flexible Benefits Administration (FSA/HSA/HRA) (HLAEALAK)
Keywords
Where California Choice is headquartered
LocationHeadquarters
- HQ city
- Orange
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
California Choice business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure
Revenue model
- Administrative Fees: CaliforniaChoice is remunerated through a monthly administrative fee charged to employer groups. The fee is based on the number of covered employees: Up to 8 employees = $30/month; 9-50 employees = $40/month; 51+ employees = $50/month. This fee is added to the monthly invoice alongside premium amounts that include commissions and other carrier fees.
- Insurance Premiums (Carrier Remuneration): Premium amounts collected from employer groups include commissions and other fees paid to CaliforniaChoice by participating health plan carriers (Anthem Blue Cross, Health Net, Kaiser Permanente, Sharp, Sutter Health Plan, UnitedHealthcare, Western Health Advantage).
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Subscription | Monthly | Monthly Administrative Fee (1-8 covered employees) |
| Subscription | Monthly | Monthly Administrative Fee (9-50 covered employees) |
| Subscription | Monthly | Monthly Administrative Fee (51+ covered employees) |
Go-to-market motion1 record
Distribution channels1 record
Marketing channels6 records
California Choice product offering
Product offeringCore offering
CaliforniaChoice operates a private multi-carrier health insurance exchange that enables small businesses in California to offer employees a choice among seven health plans (Anthem Blue Cross, Health Net, Kaiser Permanente, Sharp, Sutter Health Plan, UnitedHealthcare, and Western Health Advantage) within a single administrative program. Employers use a defined contribution model to set a monthly budget that is locked for 12 months, and employees apply that contribution toward whichever HMO, PPO, or HSA plan they prefer. The exchange packages medical, dental, vision, chiropractic, acupuncture, and life insurance benefits, supported by online tools for plan comparison, provider search, prescription search, enrollment, and account management.
Product overview
CaliforniaChoice is a private multi-carrier health insurance exchange (a CHOICE Administrators program) for small businesses in California, operating since 1996. The core platform enables employers to provide defined contribution health benefits while employees choose from seven health plans (HMO and PPO options) from carrier partners including Anthem Blue Cross, Health Net, Kaiser Permanente, Sharp, Sutter Health Plan, UnitedHealthcare, and Western Health Advantage. The exchange packages medical, dental, vision, chiropractic, acupuncture, and life insurance into a single administrative program. Key technology tools include the Online Provider Directory, Rx Search, Plan Comparison Tool, and Online Enrollment system. Additional value-add programs include the Cal Perks employee discount program and Member Value Suite. The sister ancillary benefits exchange is called ChoiceBuilder.
Differentiator
Problem solved
Functional benefit
Brands
- ChoiceBuilder: The nation's first ancillary benefits exchange, offered alongside CaliforniaChoice as a product of CHOICE Administrators.
Quantifiable outcome
- 97% of small businesses recommend CaliforniaChoice
- +2 more outcomes
Companies that use California Choice
Customer profileSegments1 record
Ideal customer profiles2 records
California Choice technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Feature9 records
California Choice partnerships and signals
Strategic signalPartnerships
Eleven partnerships are on record, tiered core and minor.
- Anthem Blue CrosscoreAnthem Blue Cross joined the CaliforniaChoice program in 2010, providing small business employees access to Anthem's health plans through the multi-carrier exchange. Anthem Blue Cross offers PPO Prudent Buyer Full Network plans available through CaliforniaChoice since 2020.
- Health NetcoreHealth Net was one of the original health plan partners when CaliforniaChoice was founded in 1996, providing HMO and other health plan options to small businesses through the exchange.
- Kaiser PermanentecoreKaiser Permanente joined the CaliforniaChoice program in 2003, offering its integrated managed care model as one of the health plan options available to small business employees.
- Sharp Health PlancoreSharp Health Plan joined CaliforniaChoice at the program's founding in 1996 as one of the original health plan carriers, providing HMO-based health coverage options for small business employees.
- Sutter Health PlancoreSutter Health Plan joined CaliforniaChoice in 2015, expanding the exchange's provider network and health plan offerings for small businesses in California.
- UnitedHealthcarecoreUnitedHealthcare joined the CaliforniaChoice program in 2014, bringing its national provider network and diverse health plan portfolio (SignatureValue HMO, Alliance, and Harmony plans) to small business customers.
- Western Health AdvantagecoreWestern Health Advantage joined CaliforniaChoice in 2003, offering its community-based HMO network to small business employees. WHA was founded by Dignity Health and NorthBay Healthcare and serves 100,000+ members across 10 Northern California counties.
- ChoiceBuildercoreChoiceBuilder is an ancillary benefits exchange operated by CHOICE Administrators (the parent company of CaliforniaChoice). It is described as the nation's first ancillary benefits exchange, offering dental, vision, chiropractic, acupuncture, and life insurance options alongside the CaliforniaChoice medical exchange.
- Word & Brown General AgencycoreWord & Brown General Agency is the sister organization of CHOICE Administrators (CaliforniaChoice's parent company). Founded in 1984 by the same co-founders as CaliforniaChoice, it is recognized as the largest independent small group health distributor in the nation. The two organizations share key systems (HITRUST certified) and strategic alignment.
- Dignity HealthminorDignity Health, the largest not-for-profit hospital provider in California, is a founding partner of Western Health Advantage (one of the seven health plans available through CaliforniaChoice). Dignity Health's Mercy Medical Group and Woodland Clinic are part of WHA's provider network.
- NorthBay HealthcareminorNorthBay Healthcare, a Solano County non-profit health care leader, co-founded Western Health Advantage (one of the seven health plans available through CaliforniaChoice). NorthBay Health provides hospitals and medical groups within WHA's network.
Scale indicators5 records
Recent moves7 records
Expansion highlights4 records
California Choice competitors and assessment
Company assessmentDirect peers
- eHealth: eHealth is an online health insurance marketplace that compares and enrolls customers in individual, family, and small business plans across multiple carriers, directly comparable to CaliforniaChoice's multi-carrier small-group exchange model.
- GoHealth: GoHealth operates a technology-driven health insurance marketplace specializing in Medicare and individual/family plans, sharing the multi-carrier digital brokerage model that defines CaliforniaChoice's small-group exchange.
- Healthcare.com: Healthcare.com runs an online comparison and enrollment platform for individual, family, and small business health plans across multiple carriers, directly comparable to CaliforniaChoice's small-group broker exchange value proposition.
- Stride (formerly Small Business Medical): Stride provides small business health insurance and benefits solutions, originally operating a multi-carrier exchange for small groups; closely comparable to CaliforniaChoice's defined-contribution small-group exchange approach.
Broad incumbents
- OneDigital: OneDigital is a large national employee benefits and insurance brokerage serving SMB and mid-market employers with multi-carrier solutions, a broader incumbent version of CaliforniaChoice's broker-centric small-group model.
- Alliant Insurance Services: Alliant is a major U.S. insurance brokerage offering employee benefits to small and mid-market employers across multiple carriers, comparable as a broader benefits brokerage incumbent versus CaliforniaChoice's exchange specialization.
- Mercer (Marsh McLennan): Mercer is a global health and benefits consultancy and brokerage advising employers on multi-carrier group benefits strategy, a large incumbent peer competing for the same small/mid-market employer customers CaliforniaChoice serves through brokers.
- ADP TotalSource: ADP TotalSource is a large PEO providing co-employment, payroll, and group health benefits (including multi-carrier options) to small and mid-sized businesses, a broad incumbent peer touching the same small-group employer benefits market as CaliforniaChoice.
Emerging players
- Justworks: Justworks is a PEO offering payroll and group health benefits to small businesses, an emerging partial-overlap peer delivering health benefits access to SMBs through a different delivery mechanism than CaliforniaChoice's pure exchange.
- Gusto: Gusto is an SMB-focused HR, payroll, and benefits platform that includes health insurance brokerage for small businesses, an emerging peer competing for the same California SMB benefits-buyer that CaliforniaChoice's brokers target.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat6 records
Key risks6 records
Key highlights7 records
Customer concentration
California Choice social profiles
Digital presenceCalifornia Choice compliance and trust
Trust signalCompliance1 record
California Choice financial estimates
Financial estimateRevenue estimate
Valuation estimate
California Choice leadership team
Management profileNumber of profiles
Profiles7 records
California Choice funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
California Choice M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about California Choice
What does California Choice do?
CaliforniaChoice operates a private multi-carrier health insurance exchange that enables small businesses in California to offer employees a choice among seven health plans (Anthem Blue Cross, Health Net, Kaiser Permanente, Sharp, Sutter Health Plan, UnitedHealthcare, and Western Health Advantage) within a single administrative program. Employers use a defined contribution model to set a monthly budget that is locked for 12 months, and employees apply that contribution toward whichever HMO, PPO, or HSA plan they prefer. The exchange packages medical, dental, vision, chiropractic, acupuncture, and life insurance benefits, supported by online tools for plan comparison, provider search, prescription search, enrollment, and account management.
Is California Choice a public or private company?
California Choice is a private company. It is classified as family owned and is currently operating.
When was California Choice founded?
California Choice was founded in 1996. It employs 251 to 500 people.
Where is California Choice based?
California Choice is headquartered in Orange, United States, in the North America region.
How does California Choice make money?
Two revenue lines are on record. Administrative Fees are the primary driver. The others are insurance Premiums (Carrier Remuneration).
Who are California Choice's main competitors?
Direct peers on record are eHealth, GoHealth, Healthcare.com and Stride (formerly Small Business Medical). Broad incumbents are OneDigital, Alliant Insurance Services, Mercer (Marsh McLennan) and ADP TotalSource. Emerging players are Justworks and Gusto.
Does California Choice have an API?
No public API is recorded for California Choice.
What industry is California Choice in?
California Choice's product category is Small Business Health Insurance Exchange. Its primary akta.pro industry code is FSAIAFAD, Small Group Health Insurance (2–50/100), with a secondary code of FSAIAFAH, Association & PEO Group Health Plans (AHP/PEO-Sponsored). Its NAICS code is 524292 and its SIC code is 6411.