What to Know About Short-Term Health Insurance Plans
Key takeaways:
Short-term health insurance provides medical benefits when you have a temporary gap in coverage. In September 2024, new federal rules capped these plans to a maximum of 4 months of coverage within a 12-month period.
Most plans offer less coverage than standard health insurance and do not cover preexisting conditions, like diabetes and cancer.
Short-term plans often have many restrictions, and some do not offer in-network healthcare professionals. This could leave you responsible for extra costs.
Table of contents
Many people receive health insurance through their job, Medicaid, Medicare, or the health insurance marketplace. But sometimes you might lose your insurance coverage or not qualify for it anymore. If this happens, you might want to consider a short-term (or temporary) health insurance plan.
Short-term plans are often cheaper than traditional health insurance plans, but they can put you at financial risk in the long run. Before you consider enrolling in a short-term health insurance plan, it’s important to understand how they work and what they cover.
What is short-term (temporary) health insurance?
Short-term insurance plans provide temporary medical coverage. They are offered through private insurance companies. And they help fill gaps in your coverage, like when you’re between jobs or waiting for a new health plan to begin.
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These plans work similarly to other types of health insurance. You pay a monthly premium, and the plan helps cover some medical costs. But short-term health plans are not required to follow the same federal regulations as ACA marketplace plans and most employer-sponsored plans.
As of September 1, 2024, short-term health plans are capped at 3 months, with the option to extend for 1 more month. That means you can have up to 4 months of short-term coverage within a 12-month time span.
How much does short-term health insurance cost?
As with all insurance, your cost will depend on the plan. You will be responsible for a monthly premium and certain other healthcare costs. Premiums for short-term health insurance plans are usually much lower than those of Affordable Care Act (ACA) plans. But plans typically have limited coverage, and some offer small provider networks or no network at all.
How much you will pay for a temporary health plan can vary depending on:
Where you live
How old you are
The insurance company you choose
For some plans, the monthly premiums can be less than $100. But temporary health plans have limited benefits. So you might have to pay out of pocket for noncovered healthcare.
Did you lose your job? You may be eligible to keep your health insurance benefits if you enroll in COBRA.
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What do short-term health insurance plans cover?
Short-term health insurance plans are primarily meant to provide temporary coverage during unexpected situations, such as an injury or a sudden illness, when you don’t have regular insurance.
Unlike ACA marketplace plans, short-term plans are not required to meet federal standards for essential health benefits. ACA plans must include coverage for services like routine checkups, pregnancy and childbirth care, and prescription medications. They also must cover preexisting conditions without charging you more or denying coverage.
In contrast, short-term plans don’t follow those same rules. Coverage and cost sharing can vary widely by plan, and many exclude important services or limit how much they’ll pay.
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The chart below highlights some of the key differences between ACA and short-term health plans:
Healthcare service | ACA plans | Short-term plans |
|---|---|---|
Preventive care | Covered | Limited coverage or none (varies by plan) |
Physician visit | Covered | Coverage varies |
Emergency visit | Covered | Coverage varies |
Hospital visit | Covered | Coverage varies |
Virtual visit | Covered | Coverage varies |
Prescription medication | Covered | Limited coverage or none (varies by plan) |
Maternal and newborn care | Covered | Coverage varies |
Preexisting condition | Covered | No coverage |
What do temporary insurance plans not cover?
Since ACA regulations don’t apply to these plans, there are several scenarios in which your medical services might not be covered:
You have a preexisting medical condition
Short-term plans may use your health history to determine your eligibility. They typically won’t provide coverage for services related to preexisting conditions. For example, if you already have asthma, cancer, diabetes, or a chronic illness and need treatment related to your condition, you could be denied coverage.
They refuse to reimburse a healthcare professional
Most regulated health insurance plans have a network of healthcare professionals, who have agreed to contracted rates. But some short-term plans don’t have a network. Instead, they will apply their own set rate to all medical claims. So if a healthcare professional bills more for a medical service than the plan is willing to pay, you could be on the hook for the rest of the bill.
You use medical services that aren’t covered
Short-term health plans typically do not cover many basic healthcare services that ACA plans must include. Some common exclusions include:
Maternity and newborn care
Prescription medications
Mental health and substance use disorder services
Preventive services
Even with covered services, the plans set cost-sharing limitations. They may also have annual or lifetime caps on benefits.
What are the pros and cons of short-term health insurance?
Here are some of the benefits of a short-term health insurance plan:
Open enrollment: You can sign up anytime during the year.
Quick coverage: Plans can begin within 24 hours of applying.
Lower premiums: Monthly costs are often more affordable than regular health insurance.
Flexible provider access: Some plans allow you to visit any healthcare professional or hospital.
Yes, short-term health insurance can offer quick, affordable coverage. But it’s important to understand some of the downsides, including:
Limited coverage period: Short-term plans cannot exceed 4 months within a 12-month period.
Limited benefits: Many don’t cover things like prescriptions, maternity care, and mental health services.
Limited networks: Some plans don’t have networks, and others may not cover out-of-network care.
No coverage for preexisting conditions: Plans may not cover conditions you already have — for example, diabetes, mental health disorders, and pregnancy.
Balance billing risk: You may have to pay the difference if a healthcare professional charges more than what the plan pays.
No guaranteed renewal: You may not be able to renew coverage, especially if you have a preexisting condition.
Higher cost sharing: Plans may have lower premiums, but they usually have higher out-of-pocket costs, such as deductibles, copays, and coinsurance.
Lifetime or annual limits: Short-term health plans may cap how much they will pay for benefits. For example, plans may pay a maximum of $2 million or less.
It’s essential to be aware of these restrictions and compare options before you buy a short-term health plan.
Which states offer short-term health insurance?
Depending on the state you live in, short-term plans may not be available or may have strict rules. As of 2025, the following states and the District of Columbia do not offer short-term health insurance plans:
California
Colorado
Connecticut
Hawaii
Illinois
Maine
Massachusetts
Minnesota
New Jersey
New Mexico
New York
Rhode Island
Vermont
Washington
For more details, check the Department of Insurance in your state. You can also speak with a licensed insurance representative.
Frequently asked questions
It depends on your situation. Short-term health insurance can be worth it if you need only temporary coverage. For example, if you are between jobs and generally healthy and it’s outside open enrollment, these plans are often cheaper. But they have limited benefits and don’t cover preexisting conditions. If you need comprehensive coverage, an ACA plan may be a better fit. Always compare costs and coverage before deciding.
Four months is the longest you can have a short-term health plan during a 12-month period. That includes renewals and extensions. This rule became effective on September 1, 2024, to ensure that these plans aren’t used for long-term coverage. If you need coverage for more than a few months, consider an ACA marketplace plan.
No. You cannot get short-term health insurance through healthcare.gov. The federal marketplace offers only ACA-compliant plans that meet minimum coverage standards. Short-term health plans are sold by private insurance companies. You must buy them through their websites or licensed agents. If you’re looking for temporary coverage, you’ll need to shop outside the marketplace.
The bottom line
Short-term health insurance provides temporary coverage for people without health insurance. These plans typically offer less coverage than standard health plans and have many restrictions. If you have a preexisting condition, it likely will not be covered. These plans also typically have limited medical professional networks, which could lead to additional out-of-pocket expenses. So it’s best to carefully consider your options before buying short-term insurance to ensure that it meets your specific needs and budget.
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References
eHealth. (n.d.). How short-term health insurance works.
eHealth. (n.d.). Short-term health insurance.
HealthCare.gov. (n.d.). Coverage for pre-existing conditions. Centers for Medicare & Medicaid Services.
HealthCare.gov. (n.d.). What marketplace health insurance plans cover. Centers for Medicare & Medicaid Services.
HealthInsurance.org. (n.d.). Short-term health insurance.
National Archives and Records Administration. (2024). Short-term, limited-duration insurance and independent, noncoordinated excepted benefits coverage. Federal Register.
National Association of Insurance Commissioners. (n.d.). Short-term limited-duration health plans.
Pollitz, K., et al. (2018). Understanding short-term limited duration health insurance. KFF.
