Texas uses its own small-employer definition, and it is not the same as Florida's. The Texas Department of Insurance states that Texas insurance law defines a small employer as a business with two to 50 employees, regardless of how many hours the employees work. That is a 2-to-50 rule, not a 1-to-50 rule. Ares Benefit Group's core practice is companies with 2 to 50 employees, which lines up with that Texas range.
The employer base
The Census Bureau's Statistics of U.S. Businesses for 2022 (state detailed-size file, released April 10, 2025) counts 470,696 Texas employer firms with fewer than 50 employees, out of 500,456 employer firms in the state, with 2,758,980 paid employees at those under-50 firms and 11,507,642 at all Texas employer firms. Under-50 firms were 94.1% of Texas employer firms in that file.
What official surveys say about cost
MEPS-IC 2025 Table II.A.2 reports that 28.2% of private-sector establishments at Texas firms with fewer than 50 employees offered health insurance, compared with 91.2% at firms of 50 or more (49.0% of all Texas establishments). At under-50 firms, average annual premiums were $8,737 for single coverage and $21,949 for family coverage, with average employee contributions of $1,583 (single) and $11,247 (family). The family employee contribution is high relative to the family premium in that table. Those are averages for enrolled employees at offering establishments, not a Dallas, Houston, Austin, or San Antonio quote. See the cost of small-business health insurance.
How Texas small-employer coverage works
TDI's small-employer health insurance guide, last updated October 23, 2023, sets out several rules that are easy to mix up with federal ACA rules:
- If you provide health insurance, you must offer it to all employees who work 30 hours or more each week, and you must also offer coverage for their dependents. Business owners can enroll if at least one employee also enrolls.
- The law does not require you to pay an employee's premiums, but TDI states that your insurance company might require you to pay at least 50% of your employees' premiums.
- Most insurance companies, TDI states, require at least 75% of full-time employees to participate; employees who have other health coverage do not count toward that percentage. If you do not meet the 75% participation requirement, a company can make you wait until the open enrollment period, which TDI describes as November 1 through January 15 each year.
- You can buy coverage at any time during the year when participation requirements are met. TDI also states that insurers cannot raise premiums because of employees' health, and that you should buy only from licensed insurance companies, which you can check on TDI's website.
This page does not publish a list of Texas small-group carriers. TDI maintains the official lists of licensed companies. We will only compare products that can be issued for the Texas counties and any other states on your roster. A national brand that sells small-group coverage in another state may not offer a Texas fully insured small-group plan.
Continuation when someone leaves the plan
TDI states that the federal COBRA law applies to employers with 20 or more employees, and that the state continuation law applies to employers of any size. Former employees who keep coverage pay the full cost of the plan. Texas Insurance Code § 1251.255 sets the maximum continuation period at nine months after the date the person elects to continue coverage, if the person is not eligible for federal COBRA, or at six additional months after any COBRA period, if the person is eligible for COBRA. See also COBRA for employers.
How we help a Texas employer
You send a roster, work locations, what you offer today, and your renewal date if you have one. We confirm the market you sit in and compare a fully insured small-group plan, SHOP or a state small-business marketplace where one applies, a level-funded design, an ICHRA or QSEHRA, or coverage arranged through a PEO. The method is on how to compare group health plans. Request a proposal or call (813) 540-1299.Frequently asked questions
Is Texas small-group coverage available to a one-employee firm?
TDI states that Texas insurance law defines a small employer as a business with two to 50 employees. That is a different floor from Florida's 1-to-50 full-time-equivalent rule. We will apply the Texas definition to a Texas group.
Does Ares have a Texas office?
No. The only address on this site is 5701 E Hillsborough Ave, Tampa, FL 33610. Our agents are licensed in all 50 states, including Texas.Do we have to pay 50% of the premium?
TDI states that Texas law does not require the employer to pay the premium, but that an insurance company might require the employer to pay at least 50%. That is a carrier or policy rule, not a universal statutory mandate in the TDI guide.
How long can someone continue coverage after leaving a small Texas group?
If federal COBRA does not apply, Texas Insurance Code § 1251.255 sets a nine-month state continuation period after the person elects continuation. If COBRA does apply, the same section provides six additional months after the COBRA period.
What does coverage cost for a small Texas employer?
MEPS-IC 2025 under-50 averages for Texas are $8,737 (single) and $21,949 (family) a year, among enrolled employees at offering establishments. Your quote is built from your census.
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