When an employee leaves a Florida small business — whether through layoff, resignation, or reduction in hours — continuing health coverage is an immediate concern. Federal COBRA and Florida's mini-COBRA law provide continuation options, but they are typically expensive because the departing employee absorbs the full premium cost. For most Florida employees, the ACA marketplace offers cheaper alternatives with subsidized premiums. This page explains what applies to Florida small businesses and what options departing employees actually have.
Federal COBRA (Consolidated Omnibus Budget Reconciliation Act) requires employers with 20 or more employees to offer continuation coverage for up to 18 months when a qualifying event occurs (termination, resignation, reduction in hours). Most Florida small businesses with fewer than 20 employees are not subject to federal COBRA.
Florida has its own continuation law — often called Florida mini-COBRA — that applies to employers with 1–19 employees. Under Florida mini-COBRA (Florida Statute §627.6692), affected employees must be offered continuation coverage for up to 18 months. The premium structure is the same as federal COBRA: the employee pays the full premium (both employer and employee share) plus a 2% administrative fee.
On a group health plan, the employer pays the majority of the premium — typically 50–70% of the employee-only cost. When an employee elects COBRA continuation, they assume 100% of that premium plus the 2% fee. For a plan with a $600/month total premium where the employer was contributing $360, the employee's COBRA cost jumps from $240/month to $612/month. That's a 155% increase overnight.
Losing job-based health coverage is a qualifying life event that triggers a 60-day Special Enrollment Period (SEP) on the ACA marketplace. Florida residents who lose small business coverage can enroll in an ACA marketplace plan within 60 days of the coverage loss date — no waiting for open enrollment.
For income-qualifying employees, marketplace plans with Premium Tax Credits can be dramatically cheaper than COBRA or mini-COBRA. A Florida individual earning $40,000/year may qualify for subsidized marketplace coverage at $100–200/month — compared to $600+ for COBRA continuation of the same group plan.
| Option | Monthly Cost (example) | Network | Duration |
|---|---|---|---|
| COBRA/mini-COBRA | Full premium + 2% fee (~$600+) | Same group plan | Up to 18 months |
| ACA marketplace (subsidized) | $0–$250 (income-dependent) | New individual plan | Ongoing |
| ACA marketplace (unsubsidized) | $350–$600+ | New individual plan | Ongoing |
| Spouse's employer plan | Employee's share only | Spouse's plan network | As long as employed |
Florida small employers with 1–19 employees must provide written notice of continuation rights within 14 days of a qualifying event. The employee then has 30 days to elect continuation coverage. Failure to provide timely notice can expose the employer to liability. Key requirements:
Some Florida small businesses use an Individual Coverage HRA (ICHRA) in place of a traditional group plan. Under an ICHRA, employees purchase their own individual health plans and the employer reimburses them tax-free up to a set monthly amount. ICHRA applies to active employees — not continuation coverage — but it can simplify the benefit and reduce the employer's exposure to complex continuation rules, since employees with individual plans can keep their coverage after employment ends without needing COBRA.
Federal COBRA applies to employers with 20 or more employees. Florida small businesses with fewer than 20 employees are subject to Florida's mini-COBRA law (Florida Statute §627.6692), which requires offering continuation coverage for up to 18 months with the same premium structure as federal COBRA.
For most Florida employees, yes. COBRA requires paying the full employer + employee premium plus a 2% fee. On the marketplace, income-qualifying individuals can receive Premium Tax Credits. Losing job-based coverage triggers a 60-day Special Enrollment Period. Florida employees should compare marketplace quotes immediately after a qualifying event.
Losing job-based health coverage triggers a 60-day SEP. Florida residents have 60 days from the loss of coverage date to enroll in a marketplace plan. Coverage typically starts the first of the month following enrollment.
An ICHRA is an active employment benefit — it reimburses employees for individual plan premiums while they are employed. It does not replace COBRA continuation obligations. However, employees on an individual plan through an ICHRA can keep their coverage after leaving employment by taking over premium payments directly with the carrier, which is often simpler than traditional group COBRA.
Compare marketplace plans, check your subsidy eligibility, and find coverage that costs less than COBRA.
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