Alyssa Lane
Short-term health insurance plans are a great option for those seeking limited health coverage during transitional periods in their lives. These plans are typically much more affordable than major medical plans, with monthly premiums starting at under $100. However, they lack the benefits of ACA major medical plans, such as coverage for pre-existing conditions, mental health services, maternity care, and prescription drugs. Short-term health insurance plans are widely available in most states, with companies like Everest, Pivot Health, and UnitedHealthcare offering comprehensive coverage for basic medical needs. While these plans can be a good short-term solution, they are not ideal for long-term coverage due to their limited benefits and higher premiums compared to other companies. As of September 2024, new federal rules limit short-term health insurance plans to three months with a maximum coverage period of four months, including renewals, making them a temporary option to fill gaps in coverage.
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What You'll Learn
Short-term health insurance is now limited to three months
Short-term health insurance is a temporary solution for people who are looking for limited health coverage during transitional periods in their lives. These plans are not a part of the Affordable Care Act (ACA) and do not need to comply with its standards. This means that pre-existing conditions are typically not covered, and you can be denied coverage for a medical issue you've previously been treated for. Short-term health insurance may not be ideal for the long term, but it can be useful when ACA major medical plans are unaffordable or unavailable.
Short-term health insurance coverage varies depending on the plan and the insurance company. These plans are not required to meet the same standards as ACA plans, and they generally have caps on how much the insurer will pay for certain services or in total. They also do not guarantee the essential health benefits of ACA plans, such as inpatient and outpatient care, mental health services, prescription drug coverage, and maternity care.
In September 2024, a finalized federal rule reduced the duration of short-term health plans to a maximum of four months, including renewals. This rule limits new short-term limited duration insurance (STLDI) plans to three-month terms. Previously, federal rules allowed for a maximum duration of 36 months. However, some states have their own rules regarding the duration of short-term health plans, and a few states do not offer these plans at all. For example, in New Mexico, Vermont, and Washington, short-term health plans are limited to three months with no renewals, while in Virginia, the initial term is limited to three months but can be extended to a total of six months.
Some of the best short-term health insurance plans, according to Forbes, are Everest's Flex Term Health Insurance, Pivot Health's Epic Base, and UnitedHealthcare's Copay Select Max. These plans may be suitable for individuals who need temporary health insurance, but it's important to remember that short-term health insurance should not be viewed as a comprehensive or long-term solution.
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Short-term plans do not cover pre-existing conditions
Short-term health insurance plans are not subject to the same regulations as regular health insurance plans and, therefore, do not cover pre-existing conditions. Pre-existing conditions refer to any medical issue for which an individual has previously received treatment. Short-term plans are not considered comprehensive coverage and are not part of the Affordable Care Act (ACA), so they are not required to comply with ACA standards. This means that insurance companies can deny coverage or charge higher premiums based on an individual's health status, medical history, or pre-existing conditions.
Short-term health insurance plans are typically more affordable than major medical plans, but they lack the comprehensive benefits of ACA-compliant plans. These plans are designed to provide temporary coverage during transitional periods and may be useful when ACA major medical plans are unaffordable or unavailable. They are often chosen by individuals who need temporary health insurance or who have a brief gap in their regular coverage.
When considering a short-term health insurance plan, it is essential to carefully review the details of the plan, including any exclusions and limitations. Pre-existing conditions may be explicitly excluded from coverage, and individuals may be required to disclose any pre-existing conditions during the application process. Some insurance companies may even deny coverage based on an individual's health status or medical history.
It is worth noting that some states in the United States ban or restrict short-term coverage, and the duration of these plans can vary. While short-term plans can provide temporary financial protection from unexpected health changes or emergencies, they are not a long-term solution. Individuals should carefully assess their health needs and consider the potential limitations of short-term plans before enrolling.
In conclusion, short-term health insurance plans do not cover pre-existing conditions, and individuals with pre-existing medical issues may face challenges in obtaining comprehensive coverage under these plans. It is important for individuals to carefully review the details of any insurance plan and understand the potential limitations and exclusions before making a decision.
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Short-term plans are more affordable than major medical plans
Short-term health insurance plans are more affordable than major medical plans. They are a good option for those who are looking for limited health coverage during transitional periods in their lives. These plans are not a part of the Affordable Care Act (ACA) and hence do not need to comply with ACA standards. This means that pre-existing conditions are not covered in short-term plans. You can be denied coverage for a medical issue that you have previously been treated for.
Short-term plans are also known as gap coverage or temporary health insurance. They are typically inexpensive and provide temporary medical insurance to those who don't have permanent health coverage outside Open Enrollment. These plans are available in most states, but there are 15 states (including DC) where no short-term plans are available due to outright bans or state laws that make them unattractive to insurers.
Short-term health plans offer limited coverage for up to three months in most states, with the chance to extend the plan for another month for a total of four months in a 12-month period. The federal government reduced the previous length of one year with an option of up to three years in September 2024. These plans are typically much more affordable than major medical plans, with premiums starting at as little as $55 per month, compared to at least $225 per month for major medical coverage.
Short-term plans are not ideal for long-term use due to their limited coverage and benefit limitations. They are meant to be a temporary solution for those who cannot afford or are ineligible for ACA-compliant major medical plans. These plans may be a good option for those who are generally healthy and don't require many medical services or prescription drug coverage.
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Short-term plans can be purchased online
Short-term health insurance plans are typically purchased online, although paper applications and in-person enrolments are available in some cases. These plans can be obtained via a website that offers numerous plan options from multiple companies, or directly from an insurance company that sells short-term plans.
Short-term health insurance can be an affordable solution for those looking for limited health coverage during transitional periods in their lives. These plans lack the benefits of ACA major medical plans, such as coverage for pre-existing conditions, but may be useful when ACA major medical plans are unaffordable or unavailable.
Short-term health insurance plans are available in most states, but there are some states that ban short-term coverage or limit coverage to three or four months. In 2025, there were 15 states (including Washington DC) where no short-term plans were available, due to either outright bans or state laws that made offering short-term health plans unattractive to insurers.
If you are looking for a short-term health insurance plan, you can visit eHealth, which is America's #1 Private Health Insurance Site. They offer a wide selection of plans and personalized coverage solutions.
Some of the best short-term health insurance plans, according to Forbes, are Everest's Flex Term Health Insurance, Pivot Health's Epic Base, and UnitedHealthcare's Copay Select Max. UnitedHealthcare is one of the largest providers of health insurance in the United States, offering a wide range of products, including short-term health insurance. Their benefit design is comprehensive and offers decent coverage for basic medical needs.
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Short-term plans do not comply with ACA guidelines
Short-term health insurance plans are not a part of the Affordable Care Act (ACA) and are exempt from ACA rules. They do not need to comply with ACA standards, which means pre-existing conditions are not covered. Short-term health plans are also not available through the Health Insurance Marketplace.
ACA-compliant coverage refers to a major medical health insurance policy that conforms to the Affordable Care Act (Obamacare) regulations. These plans are required to provide certain levels of coverage, called minimum essential coverage. Short-term plans, on the other hand, are not required to meet these standards and do not provide "minimum essential coverage".
Short-term health plans generally limit coverage of pre-existing conditions in two ways: by denying insurance altogether to people with pre-existing conditions, and by excluding coverage of pre-existing conditions for people who are offered a policy. By covering primarily people who are healthy at the time of application, short-term plans have much lower claims costs than ACA-compliant plans and can charge substantially lower premiums.
Short-term health insurance plans also generally have caps on how much the insurer will pay for certain services or in total. They also do not cover all ten categories of essential benefits, so they generally do not cover pre-existing conditions, mental health and substance abuse, pregnancy and childbirth, and many other items covered by ACA major medical plans.
Short-term health insurance is a temporary solution that can fill gaps in coverage. It is important to keep in mind that you are not buying an ACA health plan and that short-term plans differ from ACA plans.
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Frequently asked questions
No, 6-month health insurance plans are no longer available. As of September 1, 2024, federal rules limit short-term health insurance to three months with a maximum coverage period of four months, including a one-month extension, in a 12-month period.
Short-term health insurance plans are offered by several national companies, including Everest, Pivot Health, and UnitedHealthcare. eHealth, America's top private health insurance site, also provides a wide selection of short-term plans.
Short-term health insurance plans generally provide limited coverage for essential health benefits. They may include preventive care, doctor visits, urgent care, and emergency services. Some plans may also cover prescription drugs, but this is not standard.
Short-term health insurance can be useful for individuals facing transitional periods, such as unemployment, waiting for employer coverage, or those who missed open enrollment for traditional plans. It offers temporary coverage at a lower cost than major medical plans but lacks comprehensive benefits and may exclude pre-existing conditions.
