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COBRA in Texas

Texas has one of the more useful state continuation laws in the country, and it works differently from most. It does not simply cover small employers where federal COBRA stops. It can also extend your coverage after federal COBRA runs out.

Reviewed and updated 1 August 2026 against Texas Department of Insurance guidance and federal sources.

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Texas Adds Time to Federal COBRA

In most states, continuation law fills a gap. In Texas, it does that and more.

Six extra months after COBRA ends

The Texas Department of Insurance states that Texas law requires some group plans to continue coverage for six months after COBRA coverage ends. That is unusual, and it is worth knowing about well before your eighteen months are up.
If you were never eligible for COBRA in the first place, Texas state continuation runs for nine months from when your job ends.
Both routes require that you had coverage under the plan for the three months before your job ended.

Texas State Continuation Compared With Federal COBRA

Federal COBRATexas state continuation
Who it coversEmployers with 20 or more employeesFully insured plans issued in Texas, regardless of employer size
How long18 months for job loss, up to 36 for other eventsNine months if not eligible for COBRA, or six additional months after COBRA ends
Prior coverage neededNoneThree months on the plan before the job ended
Self-funded employer plansCoveredNot covered. Texas does not regulate self-funded plans
If you were firedCovered unless it was gross misconductUsually not available if you were fired
Disability extension11 additional months, up to 29 in total11 additional months after COBRA ends, per SSA determination

The Self-Funded Question

This is the detail that decides whether Texas continuation is available to you at all, and most people have never heard of it.
Texas state continuation applies only to plans issued by licensed insurance companies and HMOs subject to the Texas Insurance Code. It does not apply to self-funded plans, because the state does not regulate them.

How to find out which you had

Many larger employers self-fund, meaning they pay claims from their own money and use an insurance company only to administer the plan. From the outside it looks identical, with the same card and the same network.
Ask your former employer or plan administrator directly whether the plan was fully insured or self-funded. If it was self-funded, federal COBRA is your continuation route and Texas law adds nothing.

Your Alternatives in Texas

Texas uses the federal Health Insurance Marketplace rather than running a state exchange. Losing job-based coverage opens a 60-day Special Enrollment Period, and you can enrol up to 60 days before your coverage ends so a new plan starts as the old one stops.
Texas has not expanded Medicaid, so adult eligibility is narrower here than in most states. Adults without dependent children generally do not qualify regardless of income. That makes comparing Marketplace and private options more important, not less, particularly for households near the lower end of the subsidy range.
How ACA Marketplace pricing works →
Compare COBRA and Marketplace side by side →
What to do when you lose coverage →

Sources

Drawn from Texas Department of Insurance guidance, the Texas Insurance Code, and federal sources. Your plan documents and the terms your carrier provides govern your specific situation.

Talk to a licensed agent in Texas

A licensed agent can work out whether your former plan was fully insured, whether Texas continuation is open to you, and what your alternatives cost. No charge, no obligation.
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Prefer to talk? Call (888) 918-4516 · Monday to Friday, 10:00 a.m. to 5:30 p.m. Eastern

COBRA rules by state →
This page is general information about Texas and federal continuation coverage, not advice about your specific situation. Availability depends on whether your former plan was fully insured and subject to the Texas Insurance Code. Rules, pricing, and eligibility vary by employer, plan, carrier, and household. Review your plan documents and speak with a licensed agent about your circumstances.

This website provides educational information about health insurance and is a solicitation for insurance. It is a non-government website operated by Prodest Insurance Group, a health insurance agency that presents health plans, which may include Affordable Care Act (ACA) plans, private health insurance, short-term medical insurance, or supplemental insurance based on the consumer's selection. Qualified ACA plans must meet or exceed the essential benefit requirements of the Affordable Care Act; non-ACA plans are not required to provide all of the essential benefit requirements contained in the Affordable Care Act. Pre-existing condition provisions, benefit availability, limitations and exclusions vary by plan type and state. You should review all plan details and product brochures before purchase. To qualify for ACA health insurance coverage outside of the open enrollment period, you must meet special enrollment requirements.

*Eligibility for Affordable Care Act (ACA) Advance Premium Tax Credit (APTC) and cost-sharing reductions is based on annual federal income thresholds, household size, and plan availability within the applicable service area. Premium rates, plan availability, and subsidy amounts vary by state and marketplace. Final eligibility and premium obligations are determined by the Health Insurance Marketplace under Internal Revenue Code Section 36B and applicable federal regulations.

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