Group Health Benefits Guide for Your Texas Small Business

Guide to Texas health benefits programs

As a Texas-based employer or small business owner, offering group health benefits is a critical component in attracting and retaining top talent. 

Key takeaways:

• Importance of group health benefits in attracting and retaining talent

• How to choose the right health and benefits program

• Types of group health benefits available for employers

• The benefits of offering an employee wellness program

• The importance of understanding COBRA for Texas employers

Although small businesses in Texas with fewer than 50 full-time employees aren’t required to offer health insurance, it’s a nice perk. Providing your employees with health insurance coverage not only supports their overall health and well-being but also helps reduce absenteeism and increase productivity.

In this guide, we will explore the different types of group health benefits available to Texas-based employers, how to choose the right plan for your business, along with the benefits of offering an employee wellness program. 

Choosing the right group health benefits

Determine your budget

Before choosing a group health benefits plan, it is essential to determine your budget. Consider how much you are willing to contribute towards your employees’ premiums and out-of-pocket expenses.

Identify your employees’ needs

Identify your employees’ health care needs, including the type of coverage they require and the providers they prefer. You can conduct an employee survey to better understand their preferences.

Choose the right type of plan

Consider the different types of group health benefits plans available, including Health Savings Accounts (HSAs), Preferred Provider Organization (PPO) Plans, Health Maintenance Organization (HMO) Plans and Exclusive Provider Organization (EPO) Plans. Each plan has its own merits.

Top group health plans

Health Savings Account (HSA)

An HSA is a tax-advantaged savings account that employees can use to pay for qualified medical expenses. It has to be paired with a high-deductible health plan that allows employees to save for future medical expenses with pre-tax dollars.

Preferred provider organization (PPO) plans

PPO plans offer flexibility when it comes to choosing health care providers. Employees can choose from a network of health care providers and specialists without needing a referral from a primary care physician. However, PPO plans tend to have higher premiums and out-of-pocket costs.

Health maintenance organization (HMO) plans

HMO plans often have lower premiums and out-of-pocket costs but offer less flexibility in choosing health care providers. Employees must choose a primary care physician who will provide referrals to specialists within the HMO network.

Exclusive provider organization (EPO) plans

EPO plans are a hybrid of PPO and HMO plans. They offer the flexibility of choosing providers within the network without needing a referral from your primary care physician, but out-of-network care is not covered.

Benefits of employee wellness programs

Employee wellness programs promote healthier lifestyles, reduce health care costs and increase productivity. Wellness programs can include things like fitness programs, smoking cessation programs and mental health support. To implement an employee wellness program at your small business, start by assessing your employees’ needs and interests. 

An examination in the Harvard Business Review mentions some of the benefits of establishing a company wellness program:

• Improves health

• Increases productivity

• Improves employee engagement

• Improves attendance

• Reduces health care costs

Consider partnering with local gyms or fitness centers to provide discounts to your employees. You could also encourage healthy habits by hosting on-site lunch and learn events focused on topics from how to eat healthy on a budget to portion control and weight management. 

Understanding COBRA: A guide for Texas employers

You probably already know that small businesses in Texas with between two and 50 employees aren’t required to offer health insurance. But if you do offer health benefits, you must offer coverage to all employees working 30 or more hours per week. 

The Consolidated Omnibus Budget Reconciliation Act of 1985, also known as COBRA, provides employees who have lost their job, or had a reduction in work hours, with the option to continue their health insurance coverage. 

According to the U.S. Department of Labor, “COBRA generally requires that group health plans sponsored by employers with 20 or more employees in the prior year offer employees and their families the opportunity for a temporary extension of health coverage.”

As a Texas-based employer, it is essential to understand your obligations and responsibilities under COBRA. You must notify your employee within 30 days of any qualifying event. And then they have up to 60 days to accept or decline continuing coverage under COBRA.

Here are qualifying events that could trigger COBRA coverage:

• Reduction in the number of hours of employment, if this results in the employee losing coverage

• Termination of employment for any reason other than gross misconduct

• The covered employee becomes eligible for Medicare

• Legal separation or divorce of the spouse from the covered employee

• Death of the covered employee

• Loss of dependent child status under the plan rules

And, don’t forget about the Texas “mini-COBRA” law - the Small Employer Health Insurance Availability Act. This law grants your employees up to nine months of coverage, even if they did not qualify under the Federal COBRA law, and an added six months of coverage once the Federal COBRA law coverage expires. 

Are you shopping for group health benefits in Texas?

Offering group health plans and implementing an employee wellness program can provide numerous benefits to your Texas-based business. By choosing the right plan and promoting healthier habits, you can attract and retain top talent while improving overall employee well-being. 

If you are shopping for health benefits for your company in Houston, Dallas, Austin, or anywhere in Texas, have you considered your options for coverage?  provides all the tools you need for your small to mid-sized business to establish a health benefit plan for your employees. 

NOTE: Although Texas has its own COBRA law under the Small Employer Health Insurance Availability Act, this law does not apply to self-funded plans.