Short-Term Health Insurance (STC)
What Is Short-Term Health Insurance?
Section titled “What Is Short-Term Health Insurance?”Short-term health insurance provides temporary coverage for people who need protection during gaps in traditional insurance. It’s offered by private insurers and is not regulated by ACA rules.
Key Features
Section titled “Key Features”- Lower premiums: Often 50–80% cheaper than ACA Marketplace plans
- Flexible enrollment: Apply anytime during the year (no Open Enrollment required)
- Temporary coverage: Can last up to 36 months total under recent federal rules
- Limited availability: Not offered in some states (including California, New York, and Massachusetts)
What Short-Term Plans Don’t Cover
Section titled “What Short-Term Plans Don’t Cover”Unlike ACA-compliant plans, short-term insurance does not guarantee comprehensive benefits. Common exclusions include:
- Preexisting conditions (diabetes, asthma, cancer, etc.)
- Preventive care (checkups, screenings, vaccines)
- Maternity and newborn care
- Mental health and substance use treatment
- Prescription drug coverage (often limited or excluded)
Short-Term vs. ACA Coverage
Section titled “Short-Term vs. ACA Coverage”| Feature | ACA Plan | Short-Term Plan |
|---|---|---|
| Enrollment | Nov 1–Jan 15 (or SEP) | Anytime, year-round |
| Duration | Full year | Up to 36 months |
| Preexisting Conditions | Always covered | Not covered |
| Essential Health Benefits | Required (10 categories) | Not required |
| Subsidies | Premium tax credits & CSRs | None |
| Monthly Premiums | Higher, subsidies available | Lower, no subsidies |
Who Might Consider Short-Term Coverage?
Section titled “Who Might Consider Short-Term Coverage?”- People between jobs or waiting for employer coverage to start
- Students or gig workers needing temporary protection
- Early retirees waiting for Medicare eligibility
- Anyone who missed ACA enrollment and doesn’t qualify for a SEP
Important Consumer Note
Section titled “Important Consumer Note”Short-term health insurance is not a substitute for ACA coverage. It is best used as a temporary safety net.
If you qualify for ACA subsidies, Marketplace coverage is usually more affordable and comprehensive.
Get Help Deciding
Section titled “Get Help Deciding”Connecting with a licensed agent can help you:
- Compare ACA vs. short-term options
- Explain state-specific rules and availability
- Help you avoid gaps in coverage