COBRA for Small Employers in Florida and Texas: Who Owes What When Someone Leaves
When an employee leaves your small business, their group health coverage usually ends too. Whether they can keep it, and for how long, depends on a question that comes first: which continuation law covers your company?
This guide explains the three rules that matter to small employers in Florida and Texas, in plain English, so you know what to ask your carrier before the next person gives notice.
Step 1: Which law applies to your company
- 20 or more employees: federal COBRA applies.
- Fewer than 20 employees in Florida: Florida's mini-COBRA law (Fla. Stat. 627.6692) applies.
- Texas, fully insured plans: Texas state continuation (Texas Insurance Code ch. 1251) applies.
Your headcount and whether your plan is fully insured both matter. Ask your carrier or your broker to confirm which rule applies to your group.
Federal COBRA (20 or more employees)
- 60 days to elect: the election window is generally 60 days.
- 45 days to make the first payment after electing.
- 30-day grace period on later payments.
- Cost: up to 102% of the premium.
- How long: generally 18 months.
- Retroactive: coverage is retroactive.
Florida mini-COBRA (fewer than 20 employees)
- Written notice to the carrier within 63 days of the event that ended the coverage.
- The carrier sends the election forms, in about 14 days.
- 30 days to elect and pay after the forms arrive.
- Cost: up to 115%.
- How long: up to 18 months.
For a step-by-step walk-through, see our guide to Florida mini-COBRA.
Texas state continuation (fully insured plans)
- The person needs 3 months of prior coverage.
- They must make a written request within 60 days.
- Continuation lasts up to 9 months if they are not COBRA-eligible.
What to do when someone leaves
These steps are a practical checklist, not legal advice:
- Write down the date coverage ends and the date of the event that ended it.
- Call your carrier or plan administrator right away and ask which continuation rule applies, which notices go out and by when, and who sends them.
- Give the former employee the carrier's contact information so they can ask about their options.
- Keep records of every notice and every date.
- Remind them about other options. Losing job-based coverage opens a Special Enrollment Period, and they can apply up to 60 days before and 60 days after the loss. There is no premium tax credit for months enrolled in COBRA. Our COBRA alternatives page explains the comparison, and our guide on how long you have to elect COBRA covers the employee side.
Why this matters when you shop for a group plan
The continuation rules that apply to you come with your group plan and your headcount. When you compare quotes, ask each carrier how continuation coverage works for your size of group. Our small business page shows how to get started.
How Health Services Pro helps
Health Services Pro is a licensed, independent agency in Sunrise, Florida, licensed in 30+ states, including Florida and Texas. We work with 50+ carriers and have Spanish-speaking agents. We don't offer every plan available in your area, so we can only compare the plans we sell. Working with a licensed broker generally costs nothing extra, because brokers are typically paid by the carriers.
Frequently asked questions
Does federal COBRA apply to my small business? Federal COBRA applies to employers with 20 or more employees. With fewer than 20 employees in Florida, Florida's mini-COBRA law applies instead.
What is Florida mini-COBRA? It is Florida's continuation law for employers with fewer than 20 employees. The person gives the carrier written notice within 63 days, the carrier sends forms in about 14 days, the person has 30 days to elect and pay, the cost is up to 115% and coverage lasts up to 18 months.
What does Texas offer when an employee leaves a small employer? On fully insured plans, Texas state continuation requires 3 months of prior coverage and a written request within 60 days. It lasts up to 9 months if the person is not COBRA-eligible.
How much can a former employee be charged for COBRA? Under federal COBRA, up to 102% of the premium. Under Florida mini-COBRA, up to 115%.
What other options does a departing employee have? Losing job-based coverage opens a Special Enrollment Period, and they can apply up to 60 days before and 60 days after the loss. There is no premium tax credit for months enrolled in COBRA.
Get a group quote
Ready to compare group plans? Request a quote for Florida or Texas, or call (954) 736-0885.