How many employees do I need for group health insurance in Texas?

Usually 2, including at least one employee who isn't an owner or an owner's spouse. Prescience works with Texas groups of 2 or more employees.

Can Prescience cover employees outside Texas?

Yes. Prescience covers teams across all 50 states, and the carrier network is national.

What is a small employer in Texas for health insurance?

An employer averaging 2–50 eligible employees in the prior year, with at least 2 on the first day of the plan year.

Does Texas have mini-COBRA?

Yes. Employees not eligible for federal COBRA can continue group coverage for up to 9 months, and employees who exhaust federal COBRA can get 6 more months.

Small business health insurance in Texas

Texas gives small employers more room than coastal states: small group covers 2 to 50 employees, there's no state individual mandate, and continuation rules are lighter. That flexibility cuts both ways. A Texas startup has more ways to buy coverage, and more ways to end up on a plan that looks cheap in year one and expensive in year three.

By Aditya Jain, MD, Cofounder and COO, PresciencePublished October 3, 2026

Get a quote in 60 seconds Book a call with an expert

Small employer size: 2–50 employees
State continuation: Up to 9 months
Individual mandate: None
Prescience admin fees: $0

Small business health insurance in Texas (Prescience guide by Aditya Jain, MD)

The rules that matter in Texas

Texas rules for employer health coverage
Rule	What it means
Small employer definition	Under the Texas Insurance Code, a small employer averages 2–50 eligible employees and has at least 2 on the first day of the plan year.
State continuation	Employees not covered by federal COBRA can continue group coverage for up to 9 months. Employees who exhaust federal COBRA can get 6 more months under state law.
Individual mandate	Texas has none. Coverage is a recruiting decision, not a legal one, for small employers.
Federal rules	COBRA at 20+ employees; the ACA employer mandate at 50+ full-time equivalents.

What it means for your company

Texas teams are often split between Austin, Dallas and Houston, with remote employees elsewhere, so a broad network matters. The renewals founders show us are the same story as everywhere else: PEO plans that start low and jump 30–40% once introductory pricing ends.

How a Prescience plan works in Texas

At Prescience, we design and run your company's health plan, from setup and enrollment to claims, compliance and COBRA. What your team gets:

An effective $0 deductible, so the plan helps from the first visit.
Simple copays shown before a visit, capped by a low out-of-pocket maximum.
A broad national PPO network, plus providers we contract with directly.
24/7 physician-led care navigation: a care team that finds the right provider, books appointments and explains costs up front.

What your company gets: one monthly cost set in your quote, usually 10–20% below comparable fully insured coverage and fixed before the plan starts, with no admin fees. You keep your payroll provider, and the plan can start mid-year.

We work with Texas employers of 2 or more employees, and with distributed teams that have employees in Texas and other states.

See what your team would pay with Prescience

Answer a few questions about your team and get a quote in about 60 seconds, or talk it through with one of our benefits experts.