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Texas Health Insurance
Cost Projector for Employers

Compare fully insured, PEO, self-funded, and strategic captive health plan costs for your Texas business — powered by real data, not guesswork.

What This Means For You

If you run a business in Texas and provide health coverage for your team, you already know premiums go up almost every year. This free tool shows you what you are likely paying now, and what you could be paying under different plan structures. Think of it as a side-by-side comparison that lets you see whether sticking with your current setup makes sense or whether alternatives like a PEO, self-funded plan, or captive arrangement could save you real money.

Just enter your basic company information below. You do not need to dig through your insurance documents or call your broker first. The estimates use Texas-specific rate data so they are more relevant than national averages. Once you see the numbers, you will have a much clearer picture of your options before your next renewal conversation.

Texas Small-Group Health Insurance at a Glance

Avg Single Premium
$670/mo
Avg Family Premium
$1870/mo
Cost vs National Avg
-4%
Exchange: Federal (healthcare.gov)
Medicaid Expanded: No
Small Group Def: Up to 50 employees
Age Rating: 3:1 (federal default)
Market Type: Separate small-group and individual markets
Key Carriers: Blue Cross Blue Shield of Texas (dominant), UnitedHealthcare, Aetna/CVS Health, Cigna, Oscar Health, Ambetter (Centene), Baylor Scott & White Health Plan

What Texas Employers Need to Know

Texas has a diverse health coverage market with significant variation between urban and rural areas. Major metro areas (Houston, Dallas-Fort Worth, San Antonio, Austin) have competitive carrier landscapes while rural areas have fewer options.

Texas has not expanded Medicaid and has the highest uninsured rate nationally. This results in significant uncompensated care costs that can affect employer premium pricing.

The typical deductible range for silver-tier plans in Texas is $2,000-$7,500 for silver-tier plans. The benchmark plan is the BCBS Texas Silver Blue Choice PPO. Use our projector below to compare how your specific group would be priced across fully insured, PEO, self-funded, and strategic captive arrangements.

Texas Continuation Coverage: State continuation: 6 months for employers with fewer than 20 employees

Frequently Asked Questions: Texas Employer Health Insurance

How much does small business health coverage cost in Texas?
In Texas, the average small-group health coverage premium is approximately $670/month for single coverage and $1870/month for family coverage. Texas's cost index is 0.96 relative to the national average (1.00), meaning premiums are below the national average. Actual rates depend on your group's demographics, plan design, carrier, and rating area within the state.
What health insurance carriers are available for small businesses in Texas?
The major carriers in Iowa's small-group market include Blue Cross Blue Shield of Texas (dominant), UnitedHealthcare, Aetna/CVS Health, Cigna, Oscar Health, Ambetter (Centene), Baylor Scott & White Health Plan. Carrier availability varies by county and rating area — urban areas typically have more options than rural regions.
Does Texas have a state health insurance exchange?
Texas uses the federal (healthcare.gov) for individual and small-group enrollment. Employers can also work directly with carriers or licensed brokers to find small-group plans outside the exchange.
What are Texas's health insurance mandates beyond the ACA?
Mandates coverage for diabetes supplies, mammography, and mental health parity (limited). Texas has relatively few state mandates. Self-funded plans under ERISA are generally exempt from state mandates.
How does Texas's Medicaid expansion affect employer health insurance?
Texas has not expanded Medicaid. Texas has the highest uninsured rate in the nation, which leads to significant uncompensated care costs that can be passed through to employer-sponsored insurance premiums.
What continuation coverage options exist in Texas?
State continuation: 6 months for employers with fewer than 20 employees. Federal COBRA applies to employers with 20+ employees and provides 18 months of continuation coverage. Understanding your state's continuation requirements is important for compliance and employee communication.
Methodology & Sources: Premium estimates are based on KFF Employer Health Benefits Survey (2024), CMS rate filing data, and state Department of Insurance public filings. Cost indices reflect geographic variation in provider reimbursement rates, cost of living, and market concentration. The projector uses actuarial models calibrated to 2026 national benchmarks with state-specific adjustments. All calculations run in your browser — no data is sent to a server until you choose to submit. Sources: KFF (kff.org), CMS (cms.gov), Texas TDI, SHRM, BLS.

Getting Started — Your Next Steps

Common Questions

How accurate are these Texas cost projections?
These projections use Texas-specific rate data and industry averages, so they give you a solid ballpark. Your actual costs will depend on your group's age, health history, and the specific carriers available in your area. Think of these numbers as a reliable starting point for conversations with providers.
What is the difference between fully insured and self-funded?
With fully insured, you pay a fixed premium and the insurance company takes on all the risk. With self-funded, you pay claims directly and buy stop-loss coverage for catastrophic cases. Self-funded can save money for healthy groups but carries more variability month to month.
When is the best time to switch plan types?
Most businesses switch at their annual renewal date, which is when your current rates change. Starting the evaluation process 90-120 days before renewal gives you enough time to get quotes, compare options, and handle any transition logistics.