Medcore warns Texas small businesses on disability coverage gap

A McKinney employee benefits brokerage says Texas small-business workers face a major short-term disability gap because the state offers no public program and many small employers do not offer coverage. Medcore Brokerage is urging owners to shop early for renewal season and add disability protection that it says can be one of the lowest-cost benefits on the table.

Why it matters: - Texas has no state short-term disability program, so an employee recovering from surgery or injury can be left with no wage replacement unless an employer provides coverage. - Only 31% of workers at private employers with fewer than 100 employees have access to short-term disability through work, according to the U.S. Bureau of Labor Statistics. - Medcore Brokerage says the coverage gap leaves small-business owners exposed to turnover, financial stress, and possible workers' compensation spillover from injuries that happen away from work.

What happened: - Medcore Brokerage, a McKinney-based employee benefits brokerage, urged Texas small-business owners to address short-term disability coverage before fall renewal season. - Trey Driver, founder and president of Medcore Brokerage, said many owners assume Texas has a state disability program because states such as California and New York do. - Driver said Texas employers should treat the workplace safety net as something they must create themselves.

The details: - The U.S. Bureau of Labor Statistics reported in March 2025 that access to short-term disability coverage was 31% at private establishments with fewer than 100 workers and 68% at employers with 500 or more workers. - Colonial Life, one of the carriers whose plans Medcore administers, recommends replacing about 60% of after-tax income. - Medcore says premiums for Texas employer groups typically run 1% to 3% of an employee's income. - KFF's Employer Health Benefits Survey shows small firms pay an average of $9,211 per employee per year for single coverage and $26,054 for family coverage. - Family premiums were up about 6% in the latest KFF survey. - 28% of workers at small firms face family-coverage contributions of $12,000 or more per year, according to KFF. - Medcore argues short-term disability is one of the least expensive benefits relative to the rest of a health plan invoice. - Medcore says standalone protections can be offered even when a small employer does not offer major medical coverage. - Medcore ranks short-term disability among the most important benefits a Texas employer can offer. - Research published in Economic Inquiry in 2007 found that workers without health insurance are more likely to file workers' compensation claims than insured workers. - Those claims affect an employer's experience modifier and future premiums. - Driver said a short-term disability plan gives an injured employee a place to turn and can help protect an employer's loss history. - Medcore has published a plain-language guide to short-term disability in Texas, plus a companion resource on building employee benefits for small businesses on a budget. - Medcore has also expanded South Texas resources for employers comparing group health insurance in Corpus Christi, Brownsville and Laredo.

Between the lines: - The brokerage is tying disability coverage to a broader affordability message, not just a compliance or benefits-planning message. - The pitch is aimed at small employers that may think benefits are unaffordable, especially in markets with fewer carrier options. - Driver framed late-stage renewal pricing as a negotiating problem, not a fixed outcome, and said employers that start shopping 90 to 120 days ahead tend to get better rates. - Medcore says adding disability quotes to the same shopping process can surface one of the cheapest benefits available.

What's next: - Medcore is pushing employers to review coverage options before fall renewals begin. - The firm is directing owners to its educational resources on Texas short-term disability and small-business benefits planning. - Employers in South Texas may also use Medcore's expanded resources when comparing group health options in border-region markets.

The bottom line: - In Texas, small businesses that want disability protection generally have to buy it themselves, and Medcore says that gap is cheaper to close than many owners assume.