Short term health insurance is a flexible and affordable solution for individuals who need temporary medical coverage. Whether you’re between jobs, waiting for employer benefits to begin, or missed open enrollment, short term health insurance plans can provide essential protection during coverage gaps.
In this SEO-optimized guide, we’ll cover what short term health insurance is, how it works, costs, benefits, drawbacks, eligibility, and how to choose the best temporary health insurance plan.
What Is Short Term Health Insurance?
Short term health insurance (also called temporary health insurance) is a limited-duration medical plan designed to provide coverage for a short period, typically from 30 days up to 12 months (and in some areas, renewable up to 36 months depending on regulations).
These plans are ideal for people who need affordable health insurance for a temporary situation.
Who Needs Short Term Health Insurance?
Short term medical insurance is commonly used by:
- Individuals between jobs
- Recent college graduates
- Early retirees not yet eligible for Medicare
- People waiting for employer-sponsored coverage
- Those who missed open enrollment
- Self-employed individuals needing temporary coverage
If you are facing a coverage gap, short term insurance can act as a financial safety net.
How Short Term Health Insurance Works
Short term health insurance works similarly to traditional plans but with limited benefits.
You pay:
- Monthly Premium
- Deductible
- Copayment or Coinsurance
In return, the insurer covers eligible medical expenses such as:
- Emergency room visits
- Hospital stays
- Doctor consultations
- Urgent care
- Some prescription drugs
However, benefits and coverage levels vary significantly by provider.
What Does Short Term Health Insurance Cover?
Most short term medical plans include:
- Hospitalization expenses
- Emergency services
- Outpatient care
- Diagnostic tests (X-rays, lab work)
- Doctor visits
- Limited prescription drug coverage
Coverage varies by insurer and state regulations.
What Is NOT Covered?
Short term health insurance typically does NOT cover:
- Pre-existing conditions
- Maternity care
- Mental health services (in many plans)
- Preventive care
- Prescription drug coverage (limited in some plans)
- Chronic illness management
Because of these limitations, short term insurance is not a substitute for comprehensive long-term coverage.
How Much Does Short Term Health Insurance Cost?
One of the biggest advantages of short term health insurance is affordability.
Premiums are usually:
- Lower than traditional ACA-compliant plans
- Based on age, gender, and health history
- Influenced by deductible and coverage amount
Young, healthy individuals often qualify for very low monthly premiums compared to standard health insurance plans.
Pros of Short Term Health Insurance
1. Lower Monthly Premiums
Affordable option for temporary coverage.
2. Quick Approval
Applications are simple and often approved within 24 hours.
3. Flexible Coverage Period
Choose coverage duration based on your needs.
4. Immediate Coverage
Policies can start as soon as the next day.
Cons of Short Term Health Insurance
1. Limited Benefits
Does not meet full comprehensive coverage standards.
2. No Pre-Existing Condition Coverage
Most plans exclude prior health conditions.
3. No Essential Health Benefits Requirement
Unlike major medical insurance, coverage may be limited.
4. Not ACA-Compliant
Short term plans do not follow Affordable Care Act guidelines.
Short Term Health Insurance vs Traditional Health Insurance
| Feature | Short Term Insurance | Traditional Health Insurance |
|---|---|---|
| Premium | Lower | Higher |
| Pre-Existing Coverage | No | Yes |
| Maternity Coverage | Rare | Yes |
| Preventive Care | Limited | Covered |
| Enrollment | Anytime | Open enrollment required |
| Coverage Length | Temporary | Long-term |
Short term health insurance is best for temporary needs, not long-term health protection.
When Should You Avoid Short Term Health Insurance?
You may want to avoid short term medical plans if:
- You have a chronic condition
- You need maternity coverage
- You require mental health services
- You want comprehensive preventive care
- You qualify for government-subsidized plans
In these cases, marketplace health insurance may be more suitable.
How to Choose the Best Short Term Health Insurance Plan
Before purchasing, consider:
1. Coverage Limits
Check maximum payout limits.
2. Deductibles
Higher deductibles mean lower premiums.
3. Provider Network
Ensure your preferred doctors are included.
4. Prescription Coverage
Verify drug benefits if needed.
5. Policy Duration
Select coverage that matches your expected gap period.
Is Short Term Health Insurance Right for You?
Short term health insurance is ideal if:
- You’re healthy
- You need temporary protection
- You want lower monthly costs
- You’re between major health plans
However, it is not designed for people needing comprehensive, long-term coverage.
Final Thoughts
Short term health insurance offers affordable, flexible coverage for people facing temporary gaps in medical protection. While it provides financial security during emergencies, it does not replace comprehensive health insurance.
Before buying, carefully compare plan details, coverage limits, and exclusions. If you’re healthy and need short-term protection, temporary medical insurance can be a smart and budget-friendly solution.
