Short Term Health Insurance
Short term health insurance is a temporary medical insurance plan designed to provide coverage for unexpected medical events or emergencies during transitional periods, such as between jobs or before starting a more permanent insurance plan. These plans typically last from one to four months, with a maximum duration capped at four months under recent regulations.
Saving You Time & Money While Shopping For Insurance
Looking for Student Health Insurance?
From Student health insurance, group health insurance, to group life insurance, Navigator will connect you with the best deals for your business.
Get Free Insurance Quotes
Fill out our inquiry form, and we'll identify the perfect policy to suit your requirements and lifestyle.
Emergency Hotline: +852 2530 2530
Short Term Health Insurance Insights
Coverage Gaps
Short-term health insurance is not considered minimum essential coverage under the Affordable Care Act (ACA). If a policy ends outside the ACA open enrollment period (November 1, 2024, to January 15, 2025, for 2025 coverage), you cannot switch to an ACA-compliant plan unless you experience a qualifying life event (e.g., job loss). Termination of a short-term plan itself does not qualify for a special enrollment period.
Pre-Existing Conditions
Unlike ACA-compliant plans, short-term health insurance typically allows medical underwriting, meaning insurers can deny coverage or exclude pre-existing conditions. This makes it less viable for individuals with ongoing health needs but appealing for healthy individuals seeking temporary coverage.
Cost and Benefits Trade-Off
Short-term plans generally have lower premiums than ACA plans—averaging around $115 per month for individuals—but come with higher deductibles (often $5,000 or more) and limited benefits. They are not required to cover the ACA’s 10 essential health benefits, such as maternity care, mental health services, or prescription drugs (though some plans may offer limited drug coverage).
Short Term Health Insurance FAQs
It’s often chosen by healthy individuals needing temporary coverage—e.g., between jobs, waiting for employer insurance to start (typically 30-90 days), or missing ACA enrollment. It’s less suitable for those with chronic conditions due to coverage gaps.
You’re responsible for all costs unless you secure new coverage. If it’s outside ACA open enrollment, you’ll need a qualifying life event (like marriage or job loss) to enroll in an ACA plan—ending a short-term plan doesn’t count.
It’s not required to cover the ACA’s 10 essential health benefits, so many plans exclude maternity care, mental health services, substance abuse treatment, and often limit prescription drugs. Coverage varies by plan, but benefits are typically narrower than ACA plans.
No, it’s not considered minimum essential coverage under the ACA. However, since the federal penalty for lacking coverage was reduced to $0 in 2019, this is no longer a financial concern, though it may affect state-level mandates (e.g., in Massachusetts or New Jersey).
No, most short-term plans do not cover pre-existing conditions. Insurers can use medical underwriting to deny coverage or exclude conditions you’ve had in the past (typically looking back 5 years), unlike ACA-compliant plans, which must cover them.
