Updated April 2026 · Florida Plan Finder · Licensed Florida Health Insurance Producer

COBRA Administration Guidance for Florida Small Business Under 20 Employees

Federal COBRA (Consolidated Omnibus Budget Reconciliation Act) requires employers with 20 or more employees to offer continuation coverage to terminated workers. Florida small businesses under that threshold are exempt from federal COBRA but ARE subject to Florida's 'mini-COBRA' law (FL Statute 627.6692), which applies to employers with fewer than 20 employees. Most Florida small businesses interact with continuation coverage through mini-COBRA, not federal COBRA. This guide explains the threshold count, mini-COBRA mechanics, and admin best practices.

The 20-Employee Threshold (Federal COBRA)

Federal COBRA applies if the employer had 20 or more employees on more than 50% of business days during the prior calendar year. Counting rules:

• Full-time employees count as 1 each
• Part-time employees count proportionally (hours worked ÷ standard full-time hours)
• Counted at the employer level (not per-plan)
• Controlled group aggregation applies — related entities combined

A Florida business right at 19 employees is exempt; 20 employees triggers federal COBRA for the next year.

Florida Mini-COBRA — Under 20 Employees

FL Statute 627.6692 fills the gap for fully-insured plans of employers with fewer than 20 employees. Key rules:

• Applies to fully-insured small group plans only (not self-funded)
• Continuation period: 18 months (some qualifying events extend to 29 months for disability)
• Premium cap: 115% of group premium (not 102% as with federal COBRA)
• Election period: 30 days from notice
• Employer notification: 30 days from qualifying event

Qualifying Events

Notice and Election Process

1. Qualifying event occurs
2. Employer notifies carrier within 30 days
3. Carrier sends election notice to qualified beneficiary within 14 days of being notified
4. Qualified beneficiary has 30 days to elect continuation
5. If elected: pay first month's premium within 45 days
6. Subsequent premiums due monthly (typically by 1st of month)

Vendor vs In-House Administration

Common Mistakes

• Missing the 14-day carrier notification deadline → employee can sue for damages
• Failing to send election notice in plain language → can void waiver of continuation
• Charging more than the 115% cap (Florida) or 102% cap (federal)
• Not counting 'gross misconduct' carefully — high bar; rarely justifies denial
• Forgetting that mini-COBRA applies even when group plan is small