First, an important clarification: COBRA continuation coverage only applies to employers with 20 or more employees. If your Florida business has fewer than 20 employees, you are not subject to federal COBRA requirements. Florida does have a "mini-COBRA" law that applies to smaller groups (2–19 employees) — it requires continuation coverage similar to COBRA for qualifying events, but it's less widely understood. Either way, traditional COBRA continuation is expensive (the former employee pays the full premium plus a 2% admin fee), and most departing employees have better options.
The ACA marketplace is typically the best alternative for Florida employees leaving group coverage. Job loss is a qualifying life event that opens a 60-day special enrollment period — and many Florida residents qualify for premium tax credits on marketplace plans that make individual coverage significantly cheaper than COBRA. We always tell departing employees about this option because it can save them hundreds of dollars per month.
Better Options Than COBRA for Departing Florida Employees
- ACA marketplace plan: Job loss triggers a 60-day SEP; Florida's active marketplace means many employees qualify for subsidized plans. Often cheaper than COBRA, especially for lower-to-middle income employees
- Spouse's employer plan: If available, this is typically the best option — employer coverage at group rates with employer contribution
- Medicaid: Employees whose income drops significantly after job loss may qualify for Florida Medicaid (available for very low-income individuals and families with children)
- Short-term health plans: Available in Florida; lower cost but limited benefits and not ACA-compliant. Appropriate only for short gaps (under 3 months) for healthy employees
As the employer, your main obligation when an employee loses coverage is timely notification. Under both federal COBRA rules (20+ employees) and Florida mini-COBRA (2–19 employees), you must notify departing employees of their continuation rights and deadlines in writing.
What we tell employers: Include a short "what happens to your health coverage" section in your offboarding process. It takes 5 minutes, saves the employee significant money, and reflects well on your business. We can provide a template.