California Choice

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.

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

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

• Private health insurance exchange
• Small business health insurance
• Multi-carrier benefits platform
• Defined contribution benefits
• Group health insurance broker

Headquarters

HQ city

Orange

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. 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.
2. 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

Go-to-market motion1 record

Distribution channels1 record

Marketing channels6 records

Core 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

Segments1 record

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature9 records

Partnerships

Eleven partnerships are on record, tiered core and minor.

• Anthem Blue CrosscoreStrategic or Co-development PartnerAnthem 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 NetcoreStrategic or Co-development PartnerHealth 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 PermanentecoreStrategic or Co-development PartnerKaiser 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 PlancoreStrategic or Co-development PartnerSharp 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 PlancoreStrategic or Co-development PartnerSutter Health Plan joined CaliforniaChoice in 2015, expanding the exchange's provider network and health plan offerings for small businesses in California.
• UnitedHealthcarecoreStrategic or Co-development PartnerUnitedHealthcare 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 AdvantagecoreStrategic or Co-development PartnerWestern 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.
• ChoiceBuildercoreStrategic or Co-development PartnerChoiceBuilder 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 AgencycoreStrategic or Co-development PartnerWord & 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 HealthminorStrategic or Co-development PartnerDignity 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 HealthcareminorStrategic or Co-development PartnerNorthBay 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

Direct 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

• Xx.com/CAChoice
• YouTubeyoutube.com/channel/UCxF8-IbTRZ1ac3gRLXHj2FA

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles7 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about California Choice