What is Short-Term Health Insurance?
Short-term health insurance plans provide temporary medical coverage for a limited period, typically 3 to 12 months. These plans are designed to fill gaps in coverage, such as between jobs, after aging off a parent's plan, or while waiting for employer benefits to begin.
Pros of Short-Term Plans
- Lower premiums: Significantly cheaper than ACA marketplace plans
- Quick enrollment: Coverage can start as soon as the next day
- Flexibility: Choose the exact coverage period you need
- No enrollment period: Apply any time of year
Important Limitations
Short-term plans are not required to cover the ACA's essential health benefits. This means they may not cover:
- Pre-existing conditions
- Maternity care
- Mental health services
- Prescription drugs (or may have limited coverage)
- Preventive care at no cost
Not ACA-Compliant
Short-term plans don't count as minimum essential coverage under the ACA. In some states, you may face a tax penalty for not having ACA-compliant coverage.
Who Should Consider Short-Term Insurance?
Short-term plans are best for generally healthy individuals who need temporary coverage and want to keep costs low. They're not ideal for anyone with ongoing medical conditions or who needs comprehensive coverage.
Alternatives to Consider
Before choosing a short-term plan, check if you qualify for a Special Enrollment Period on the ACA marketplace, Medicaid, or COBRA continuation coverage from a previous employer.