For purposes of definition of health insurance in Texas, there is a difference between small employers and large employers according to state and federal mandates. For a small employer to be called just that, they will have to have no more than 50 employees that work full-time (actually 2 to 50 full-time employees). These employees that are defined as full-time must work at least 30 hours or more each week in order to qualify. That does not include temporary workers or seasonal workers.



Because they are so vital to the nation's economy and have less capital, small businesses are afforded some leeway regarding health insurance by both the state and federal legislatures. Included in these special protections under the law are mandates limiting the amount insurers can charge and the type of benefits offered to small businesses. However, this is not automatic and small businesses must meet certain eligibility requirements to qualify for group health insurance in Texas. The most important qualification is based on the number of employees the company will choose coverage by the plan. And, a company can not pick and choose which employees or dependents to include in their plans. While employees have the right to decline coverage, it must be their choice according to the law.

A health insurance provider may require that a minimum of 75% of the employees that are eligible for insurance through their small business employer sign up for their insurance. With some companies this may be a portion of how they will obtain health insurance. But, it may all depend on the number of employees and the law may state that not that many employees at the company have to participate in order for them to qualify for health insurance in Texas.

Very small companies may be required to get buy-in from 100% of their employees regarding participation before an insurer agrees to work with them on a group plan or they may be forced to choose an individual or family plan for their health insurance in Texas. Because of the high costs of health insurance in Texas, it is best for employees to be covered under a company group plan rather than an individual plan. This can be difficult for small companies with very few employees.

With the small employer, the ones that qualify for health care coverage are bound by the exact terms and conditions. No one can have anything different in their health insurance policy. If it were a larger employer, then the policies would be different. They could be more flexible because they have more people that would need or want coverage. The health insurance in Texas can dictate that.

No matter what size the company is, it is against the law for any employer to require an employee to participate in a health insurance plan in Texas in order to keep their job. It is also illegal to disqualify an employee for insurance coverage due to their age, gender or health conditions they may have.

It is important that small employers follow the rules about health insurance in Texas. The small employer needs to know what is allowed and what is not allowed for their employees. To make sure that things are in order, they should consult their health insurance handbook or contact their health insurance representative. Having that in place will make things much smoother when it's time for employees to use their health insurance. They need to make sure that they are providing the right kind of health insurance to their employees.