Short term health insurance is a type of health coverage that can provide you with temporary medical coverage when you are in between health plans, outside enrollment periods, and need coverage in case of emergency.
Short term plans do not have to cap patient out of pocket costs like ACA compliant plans. Because of this they can be purchased with very high deductibles and lower premiums.
However, there are limitations with this kind of coverage. Short term plans do NOT cover preventative care, pre-existing conditions, or ongoing prescriptions. They don’t cover labor and delivery either.
These plans were introduced in 1996, pre-ACA.
ACA plans are required to provide certain levels of coverage called minimum essential coverage. Short term health plans are NOT required to meet the same standards. Short term plans aren’t connected to tax credits or subsidies you see on the Marketplace.
Some insurance companies that offer short term plans offer discounts on premiums based on the consumers health.
Pros of short term health insurance
Cons of short term health insurance
Short term health insurance may not be ideal for long periods of time. If you have lost your job, are transitioning off your parents’ insurance upon turning 26, or have missed open enrollment, short term plans may be your best option.
For comprehensive coverage and benefits, make sure you enroll in a traditional health plan. This is employer provided health coverage, or individually purchased plans through the Marketplace.
At our agency, we take your privacy seriously. Unlike big insurance agencies that sell your information to high-pressure agents, we only use it to connect with you personally. This way, we can ensure that you get a plan that's tailored specially for you.