SHORT TERM INSURANCE PLANS

Short-Term health plans are specifically designed to bridge the gap between permanent policies. It is important to note that Short-Term plans do not have to follow all the coverage requirements of the ACA.

There are both advantages and drawbacks to short-term health insurance plans, and it’s important to be aware of both.

You might consider a Short-Term plan if you are:

  • Between jobs and don’t want to pay high COBRA premiums

  • Waiting to become eligible for Medicare

  • In need of coverage until the Open Enrollment Period begins

  • Not yet eligible for a major medical plan through your employer

Coverage for a Short-Term plan is different from what is covered with a major medical plan that complies with the ACA. ACA-compliant medical insurance plans are much more extensive than Short-Term insurance and can last for longer terms. Short-Term plans usually cover services and treatments related to unexpected illness or injury.

Coverage might include:

  • Outpatient visits to the doctor

  • Emergency room visits

  • Hospital stays

  • Surgeries required for illness or injury

  • Related x-rays and laboratory services

  • Some Short-Term plans might also offer coverage for prescription medications and other benefits. However, you may pay a higher premium to receive those additional benefits. Specifics will depend on the plan you choose and the company providing the plan.

Advantages of Short-Term plans include:

  • Ability to apply at any time of the year (you can only enroll in major health plans during the Open Enrollment Period unless you qualify for a Special Election Period)

  • Flexibility in terms, ranging from 3-12 months

  • Cost-effective, quick coverage when you suddenly find yourself uninsured

  • Provides a buffer when you are between health plans

Drawbacks of Short-Term plans include:

  • May not offer coverage for services like maternity, mental health, and preventative care

  • Not all Short-Term plans are renewable

  • Coverage can be denied if you have a pre-existing condition (this is prohibited by law with ACA-compliant plans)

  • Usually, requires the completion of a medical questionnaire prior to enrollment

  • Another significant drawback to short-term health plans is that they are not available in some states. States and districts that do not offer short-term ➢ options include DC, California, Colorado, Hawaii, Massachusetts, New York, New Jersey, Rhode Island, Vermont, Connecticut, and New Mexico.