Managed Benefits · Texas
Texas is a mini-COBRA state: smaller employers must let departing employees keep group coverage under state law. BEG Managed Benefits, powered by isolved, runs the notices, elections, and premium tracking so the rules are handled. You keep your broker; we do the administration.
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Texas Continuation, In Brief
| State law | Tex. Ins. Code sections 1251.251-1251.260 (esp. 1251.252 eligibility, 1251.255 duration/termination); HMO parallel at Tex. Ins. Code Chapter 1271 |
| Employers covered | Applies to fully-insured group health plans generally (including small employers with 2 to 19 employees who are not subject to federal COBRA). Small employer health benefit plans must provide continuation under Insurance Code Chapters 1251 and 1271. |
| Maximum continuation | Up to 9 months |
| At 20 or more employees | Federal COBRA applies instead |
| Marketplace | Uses the federal marketplace, HealthCare.gov (Texas does not run a state-based exchange). |
Source: Texas statute and department of insurance (statutes.capitol.texas.gov). This page is general information, not legal advice.
Why It Lands On You
The Texas rule reaches companies too small to have a benefits department, yet the notices, election windows, and premium tracking look a lot like federal COBRA. Miss a required notice and the exposure accrues per person. BEG Managed Benefits, powered by isolved, runs Texas continuation the same way it runs enrollment: notices generated on the qualifying event, elections and payments tracked, and the clock watched so nothing slips. Your broker keeps advising you and placing coverage. We own the administration behind it.
Your monthly estimate on screen - no call required
See COBRA vs mini-COBRA, or return to the Managed Benefits overview.
Questions
Yes. Texas has a state continuation, or mini-COBRA, law that lets employees of smaller companies keep group health coverage after a qualifying event, filling the gap below the federal COBRA threshold of 20 employees. Applies to fully-insured group health plans generally (including small employers with 2 to 19 employees who are not subject to federal COBRA). Small employer health benefit plans must provide continuation under Insurance Code Chapters 1251 and 1271.
Up to 9 months, subject to the state's early-termination rules such as non-payment of premium or becoming covered under another plan.
An employee, member, or dependent whose group coverage terminates for any reason other than involuntary termination for cause (health-related causes do not count as cause), and who was continuously insured under the group policy for at least three consecutive months immediately before termination.
No. Federal COBRA applies to employers with 20 or more employees, and the Texas law covers the smaller groups federal COBRA does not reach. A company is generally subject to one or the other based on size.
The employer and insurer carry the notice and election duties, and the exposure accrues per person if they are missed. BEG Managed Benefits, powered by isolved, runs enrollment, notices, election tracking, and premium status in one system. You keep your broker; we do the administration.
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