Texas COBRA and Mini-COBRA Health Insurance Continuation

In Texas, employees who lose their job or experience a reduction in hours may be eligible to continue their group health insurance coverage through federal COBRA. This coverage applies to employers with 20 or more employees and allows qualified individuals to keep their existing plan for up to 18 months, provided they were enrolled on the day before the qualifying event.

Employees must elect COBRA within 60 days of receiving the notice and are required to pay the full premium, including the portion previously paid by the employer, plus a 2% administrative fee. Additional extensions may apply in specific circumstances, such as disability or a second qualifying event.

Texas Continuation Coverage (Mini-COBRA)

For employees who are not eligible for COBRA, or who have exhausted their COBRA benefits, Texas offers a separate continuation option under state law. Commonly known as Texas Mini-COBRA, this provision allows qualified individuals to continue their group health coverage for up to nine months after the loss of eligibility. The law applies to employers with 2 to 19 employees and is codified under Texas Insurance Code § 1251.251.

• Employer Size: Applies to group health plans issued to employers with 2–19 employees in Texas.
• Eligibility: Employees and their dependents who were continuously covered by the employer’s plan for at least three months before the qualifying event.
• Qualifying Events: Termination of employment or reduction in work hours that results in loss of eligibility under the plan.
• Coverage Duration: Up to nine months of continuation coverage, either following COBRA exhaustion or for those ineligible for federal COBRA.
• Premium Payment: Individuals are responsible for paying the entire premium cost for continued coverage.
• Election Period: Continuation must be elected within 60 days of the qualifying event or notification.
• How to Apply: Eligible individuals should follow the instructions provided in the continuation notice from the employer or insurer to elect coverage and pay premiums on time.

Alternative Low Cost Medical Plans in Texas

Continuing an employer plan in Texas with Mini-COBRA is around $826/mo, per individual. If COBRA is unavailable or is outside of your budget, you do have affordable other options for health coverage. See below:

The cost of health insurance is determined by your age and state of residency.