Large Group Health Insurance Renewal in Texas: Notice Rules, Claims Data, and a Re-Shop at 50+ and 100+
A large group health insurance renewal in Texas is priced on your own claims history, so the carrier's letter is an offer you can test, not a market price. Texas requires at least 60 days of written notice before a premium increase takes effect, and the carrier cannot require an answer before the 45th day after that notice.
We are an independent employee benefits brokerage based in Corpus Christi and licensed across Texas. We re-shop renewals for groups at 50+, 100+, and 250+ employees. 40 Google reviews.
Large group health insurance renewal in Texas: the 60-day letter and the 45-day clock
Texas Insurance Code section 1254.001 covers insured group health policies delivered or issued for delivery in Texas. The carrier must give the policyholder written notice at least 60 days before a premium increase takes effect, stating the amount and the effective date. It cannot require a response to renew before the 45th day after that notice. The statute also lets the carrier negotiate benefits or rates at your request once the notice is out. Treat the letter as the start of the renewal, not the end of it.
The statute speaks to insured policies. A level-funded or self-funded plan renews through the stop-loss contract and the administrator, so ask for those terms and their due date in writing. Self-funded vs level-funded health insurance in Texas shows where each piece sits.
What sets a large group renewal rate
Texas writes its rating rules for small employers, 2 to 50 employees, in Subchapter E of Chapter 1501. The large employer subchapter has no rate bands. It says a carrier may not adjust rates for individual employees on health status or duration of coverage, and that this does not restrict the amount a large employer may be charged.
The inputs are your claims history, your largest claimants, enrollment by coverage tier, the ZIP mix, and the plan design. A level-funded renewal adds the stop-loss terms. Carriers weigh your claims against their book differently, so one census can renew differently at two carriers.
Get the claims report before you decide
Chapter 1215 of the Texas Insurance Code lets a plan sponsor request a claims report in writing. The health insurance issuer must deliver it within 30 days, and owes you that report up to twice in any 12-month period. It covers up to 36 months: paid claims by month for medical, dental, and pharmacy, premium by month, covered employees by coverage tier, and pending claims.
Individual detail comes for anyone with more than $15,000 in paid claims in the prior 12 months, once the sponsor signs the HIPAA certification the statute lists. You have 10 days after receipt to ask for more. Because the clock is 30 days, we ask for the report in writing on day one.
Your right to renew, and when a carrier can say no
A carrier must renew a large employer plan at the employer's option unless one of five things applies: unpaid premium, fraud or a misstated material fact, a breach of the plan terms, no enrollee living or working in the service area, or the end of an association membership. A carrier can modify a plan at renewal when the change applies uniformly to every large employer on that plan and it gives you and the Texas Department of Insurance 60 days' notice.
The carrier can also set a minimum contribution or participation level as a condition of renewal. Texas says the requirement must be stated in the contract and applied the same way to every large employer. A drop in enrollment can put a renewal at risk even when the rate is fine, so check that number before you change your contribution.
Texas large group renewal notice rules at a glance
| What happens | The Texas rule | Statute |
|---|---|---|
| Written notice of a premium increase | At least 60 days before it takes effect | 1254.001 |
| You request a claims report | Due within 30 days, up to twice in 12 months | ch. 1215 |
| Carrier modifies the plan | At renewal, uniformly, with 60 days' notice | 1501.108 |
| Carrier ends a type of coverage, or leaves the market | 90 days' notice with an offer of other coverage, or 180 days | 1501.109 |
| Cancellation or nonrenewal for a listed reason | 30 days' notice to the employer | 1501.110 |
When your headcount crosses 50 or 51 at renewal
Texas treats an employer as large when it averaged at least 51 employees on business days in the preceding calendar year. The federal Applicable Large Employer test is 50 full-time equivalents, averaged over the prior year. A group can cross one line before the other. The federal side is in Texas employer health insurance requirements.
A small group that grows past 50 can renew its current plan and keep its small-group protections on that plan. Switch plans, or miss the contribution or participation rule, and those protections end. The carrier must tell you about the change within 60 days of learning it, and no later than the first renewal after. Groups at 50 or fewer should read our small group renewal guide.
How we re-shop a large group renewal
We start with the renewal letter and the claims report. Then we put the same census and plan design in front of the carriers and funding options that fit the size. We quote all major carriers and several regional ones, fully insured and level-funded. Healthy groups that underwrite for it often see level-funded land about 15% to 30% under a comparable fully insured quote. That is a planning note, not a promise on your census.
We compare the renewal and every quote on one sheet: employer share, employee cost by tier, funding type, stop-loss terms, and the network on the exact plan ID by home ZIP. Build 60 to 90 days when you can. The full process is in large group health insurance in Texas.
What a renewal shop costs the employer
Our broker cost to the employer is $0. Carrier commission is already inside the published premium whether you shop the renewal or accept it, so skipping the broker does not lower your rate. On a level-funded quote, we set our PEPM, our per employee per month amount, in the quote. It sits inside the monthly carrier payment, never as a separate bill. PEPM vs commission explains how Texas benefits brokers get paid.
For planning only, full single medical runs about $625 to $680 per employee per month in 2026, and a 50% employer contribution to employee-only is about $313 to $340 per enrolled employee. Those are estimates, not a large group quote.
What to send for a renewal shop
- The renewal letter, with the amount, the effective date, and the date the carrier wants an answer.
- The census: each eligible employee's date of birth, gender, home ZIP, and coverage tier.
- The claims report, or the date you asked for it.
- The current plan, your contribution, and the hospitals your people use by campus.
- Every work state, if you have employees outside Texas. A multi-state group health insurance broker checks situs and networks.
Frequently Asked Questions
How much notice does a Texas group get before a rate increase?
At least 60 days of written notice, stating the amount and the date. The carrier cannot require a response to renew before the 45th day.
Can a carrier refuse to renew a large group?
Only for the reasons Texas lists, such as unpaid premium, fraud, a breach of the plan terms, or no enrollee in the service area.
Is a 55-employee company a large group in Texas?
Yes, if it averaged at least 51 employees on business days in the preceding calendar year. The federal test is separate.
The short answer
A large group health insurance renewal in Texas is a quote built on your claims, with at least 60 days of written notice before an increase and no required response before the 45th day. Request the claims report in writing early, because it can take 30 days. We re-shop the renewal against all major carriers and several regional ones, fully insured and level-funded. Our broker cost to the employer is $0. Groups 2 to 250+. We do not cap. 40 Google reviews.
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Send your large group renewal letter and census
Send the renewal letter and the census. We will say what the market can do before the carrier's deadline. Corpus Christi base. Statewide license. Clint Wallace, Lic 3200999 / NPN 21250478. Groups 2 to 250+. We do not cap.
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