For many, short term health insurance is an essential option. Designed to help Americans without a healthcare guarantee, temporary insurance ensures coverage for individuals and family members who experience major medical events, unexpected illnesses, and accidents.

These plans are used to bridge the gap between more permanent insurance options. Whether you are waiting for a new plan to take effect, or need coverage while you find something more fixed, short term health insurance is the best way to ensure coverage for you and your family.

Who is Eligible for Short-Term Health Insurance?

Short term health insurance is a type of health plan designed to temporarily offer coverage to people without coverage. Depending on the state and specific plan, temporary coverage varies between 30 and 120 days.

Since going without insurance is a risk that most people are not willing to take, temporary insurance is an excellent temporary solution for those who are facing situations such as:

Short term health insurance
  • Starting a new job
  • Waiting for a new plan to begin
  • Are without health insurance at the moment
  • Missed the Obamacare Open Enrollment deadline

Short term plans are not compliant with the Affordable Care Act (ACA or Obamacare). The ACA mandates coverage for the Ten Essential Health Benefits, while these non-compliant plans are not required to do so. Even so, short term health insurance covers a variety of other medical services.

What Does Temporary Health Insurance Cover?

Depending on the program and state, specific short term health insurance plans may cover variations of the following:

  • Ambulatory Ambulatory
  • Emergency Emergency
  • Hospitalization Hospitalization
  • Surgical care Surgical
  • Lab & X-Ray Lab & X-Ray
  • Prescription drug discount cards Prescription
  • Rehabilitative Rehabilitation

These plans are intended to cover unexpected illness or injury. They are an affordable option to have excellant coverage until you get a qualified plan.

But no matter the type of plan or state, temporary health insurance does not cover specific services—like mental health, substance abuse, preventive care, and pre-existing conditions.

What Short-Term Health Insurance Doesn’t Cover

The most important thing to know before purchasing temporary health insurance is that it doesn’t cover pre-existing conditions. So, you can’t buy a plan with the intent to have current illnesses covered by your provider.

This is because short term insurance is “medically underwritten,” which means that an insurer is allowed to use an applicant’s medical history to determine whether or not they will be approved for the policy. Short term insurers may reject your application if you are unhealthy or have a pre-existing condition.

Medical underwritten is one of the major differences between short term coverage and Obamacare. Plans that are ACA-compliant do not have medical underwriting and accept all applicants, no matter their health history.

temporary-health-insurance

Can You Renew Short Term Coverage?

Beginning in September 2024, you can longer renew your short term coverage. If you want to extend your plan, you’ll have to re-apply for short term coverage with a new insurance company when you policy expires.

How Does Short-Term Health Insurance Work?

Having temporary health insurance is the best way to ensure that you and your family are covered if an unexpected medical emergency occurs.

Although these plans don’t cover pre-existing conditions, life can be unpredictable—and the last thing you want is to face an emergency uninsured. Short term health insurance plans are extremely beneficial in this aspect, while also offering fast coverage, an extensive network of doctors, low premiums, and more.

Benefit #1:

Get Covered Quickly

Short term health insurance is easy to apply for. All you have to do is fill out an application online. Once your application has been approved, coverage will likely begin immediately or the next day.

Unlike Obamacare, you can also apply for coverage anytime during the year since there are no open enrollment restrictions.

Benefit #2:

Extensive Network

You don’t have to change doctors just because you’ve switched to temporary health insurance—so if you already have a primary physician, you can continue seeing them without skipping a beat.

If you are searching for a doctor, you can select your own physician from an extensive network of healthcare providers.

Benefit #3:

Lower Premiums

One of the most appealing points of short term health insurance is the low premiums. These monthly payments are noticeably less than ACA-compliant insurance, making temporary coverage more attractive and realistic for many Americans.

For example, the typical premium for an ACA-compliant plan is $448 per month, whereas people can expect to pay as low as $113 for short term coverage. This is because these plans are designed to meet all types of budgets and needs for any size family with the opportunity to choose from several deductible options.

Benefit #4:

Covers The Whole Family

Going without protection is extremely risky, which is why short term insurance allows individuals to purchase family-wide coverage to include spouses and dependents. However, because short term health insurance is medically underwritten, all family members need to meet the requirements of the plan.

Benefit #5:

Cancel Anytime Without Penalty

Short term insurance is a temporary solution, you only pay month-to-month so that you can cancel anytime.

The Pros And Cons Of Short-Term Health Insurance

Short-term health insurance can offer a lifeline for individuals in need of temporary coverage, but like any insurance product, it comes with its own set of advantages and drawbacks.

Pros:

  • Flexibility: Short-term health insurance provides flexibility in coverage duration, typically ranging from 30 to 120 days. This flexibility is ideal for individuals in transitional periods, such as between jobs or waiting for employer-sponsored coverage to begin.
  • Affordability: Compared to traditional health insurance plans, short-term health insurance premiums are often more affordable. This makes it a cost-effective option for individuals who need basic coverage for a limited time but want to avoid paying high premiums.
  • Quick Coverage: Short-term health insurance plans can be approved and activated quickly, as soon as the next day. This rapid turnaround time is advantageous for those who find themselves in between jobs and without employer-sponsored insurance. It provides a crucial safety net during a period without standard health coverage.
  • No Network Restrictions: Unlike many traditional health insurance plans, short-term health insurance often allows policyholders to visit any healthcare provider without being restricted to a specific network. This freedom of choice can be valuable, especially in emergency situations.

Cons:

  • Limited Coverage: One of the main drawbacks of short-term health insurance is its limited coverage. These plans typically do not cover pre-existing conditions, preventive care, or maternity care. Additionally, coverage for prescription drugs and mental health services may be minimal.
  • No Guaranteed Renewal: Short-term health insurance plans do not guarantee renewal, meaning policyholders may face gaps in coverage if they’re unable to secure another plan once their current one expires. This uncertainty can leave individuals vulnerable to unexpected medical expenses.
  • Exclusions and Restrictions: Short-term health insurance plans often come with exclusions and restrictions that can limit coverage. These may include waiting periods for coverage to begin, limitations on coverage for certain treatments or procedures, and caps on benefits.
  • Not ACA-Compliant: Short-term health insurance plans are not required to comply with Affordable Care Act (ACA) regulations, meaning they may not offer the same level of consumer protection as ACA-compliant plans. This can leave policyholders with fewer rights and protections in the event of disputes with insurers.

Is Short-Term Health Insurance Right For You?

Short term health insurance is a great option for securing your health while you wait for more permanent solutions. Although some people may opt to go without coverage while searching for a more permanent plan, some states have penalties—also called individual mandates—if you remain uninsured.

As long as you are healthy and between 18 and 65 years old, you will likely qualify for short term health insurance, especially if you:

  • Missed Open Enrollment for Obamacare
  • Are waiting for other coverage to begin
  • Just turned 26 and are off your parents’ insurance plan
  • Are in-between jobs or are waiting for benefits to begin

If you think you qualify, then you can easily apply online and receive an approval notification within minutes. These plans are not purchasable through HealthCare.gov; instead, you will need to buy temporary health insurance directly from an insurance company, or through a private exchange like AHiX Marketplace.

Frequently asked questions

  • What is Short-Term Health Insurance?

    Short-term health insurance provides temporary coverage for individuals in need of health insurance for a limited period. These plans typically offer basic medical coverage, including doctor visits, emergency care, and hospitalization, but may not cover pre-existing conditions or preventive care.

  • Who Pays Health Insurance While on Short-Term Disability?

  • How to Get Short-Term Health Insurance?

  • How Much is Short-Term Health Insurance Cost?

  • Is Short-Term Health Insurance Worth It?

  • Does Short-Term Health Insurance Cover Pre-existing Conditions?

  • How Long Does Short-Term Health Insurance Last?

  • What’s the Difference Between Short-Term Health Insurance and COBRA?

  • Can I Get a Short Term Plan as Temporary Insurance Between Jobs?

Shop Short-Term Health Insurance By State

Learn more about cheap short-term health insurance options in your state

View All States View Less States

How to Apply for Short-Term Health Insurance Coverage

Let’s be honest: life can get a little crazy and things can get unpredictable. So if you find yourself without health insurance but need coverage immediately, temporary coverage is the best way to ensure healthcare—all while guaranteeing your dependents coverage and without paying high premiums.

Finding the right plan can definitely be a challenge, but you can start today by browsing for the best policy on the AHiX Marketplace, which is a private exchange that allows you to search for some of the best plans suited for you, your family, and your budget.