Question: Can small employers let employees opt out of group plan to join the exchange?

Answer: An employee of a small business can opt out of the employer-sponsored group health plan. (It’s not up to the employer.) However, the employee may not be eligible for a subsidy in Covered California if they have access to “affordable” group health insurance. What is affordable? Read my article, Bad News for Families with Modest Income” to understand the affordability rule. This “catch 22” was not hatched by Covered California, nor the Affordable Care Act, but by the IRS.