When life throws curveballs—like a sudden job loss, a move, or a gap between major medical coverage—short term health insurance can be a temporary safety net. While it may not replace comprehensive health plans, short term health insurance can offer affordable, immediate coverage when you need it most.
In this blog, we’ll break down everything you need to know about short term health insurance—what it is, how it works, who it’s for, its pros and cons, and how to decide if it’s the right fit for your needs.
What Is Short Term Health Insurance?
Short term health insurance, also known as temporary health insurance, is a type of health coverage designed to fill gaps in your health insurance plan. It typically lasts anywhere from 30 days to 12 months, although some policies can be renewed for up to 36 months depending on your state and insurer.
These plans are intended for short-term needs, not long-term solutions. They usually offer basic coverage for doctor visits, urgent care, emergency services, and hospitalization. However, they often don’t cover pre-existing conditions, maternity care, mental health services, or prescription drugs as thoroughly as traditional health plans.
Who Should Consider Short Term Health Insurance?
Short term health insurance can be a great option for certain individuals who are in transition or in between more permanent coverage. You might benefit from a short term plan if you are:
- Between jobs or waiting for employer coverage to start
- A recent college graduate not yet enrolled in a workplace plan
- Retired early, waiting for Medicare eligibility
- A part-time or gig worker without employer benefits
- Outside of Open Enrollment, and don’t qualify for a Special Enrollment Period
- Healthy and need minimal coverage for a short time
If you fall into any of these categories, a short term health insurance plan might provide the affordable, temporary protection you need.
How Does Short Term Health Insurance Work?
Short term plans are generally easy to apply for and can often begin as soon as the next day after approval. Here’s how it typically works:
Choose a Plan
You can shop for plans online or through an insurance broker. Plans differ in premium, deductible, copay, coinsurance, and maximum coverage limits.
Apply and Get Approved
Most short term plans don’t require medical exams, but you may need to answer a few health questions. Pre-existing conditions are usually excluded.
Start Coverage
Coverage can start as quickly as 24 hours after your application is approved. Most insurers allow you to choose your start date.
Use Benefits as Needed
Once your plan is active, you can use it for covered medical expenses up to the coverage limits. You’ll still be responsible for copays, deductibles, and coinsurance.
What Does Short Term Health Insurance Cover?
While coverage varies by plan and provider, most short term plans include:
- Emergency room visits
- Hospital stays
- Doctor and urgent care visits
- Diagnostic testing and imaging (like X-rays or MRIs)
- Limited coverage for prescription medications
Keep in mind: These plans are not required to comply with Affordable Care Act (ACA) standards, so they may not cover:
- Pre-existing conditions
- Maternity and prenatal care
- Mental health and substance abuse treatment
- Preventive care (like vaccinations and screenings)
Prescription drugs (or may offer limited coverage)
Pros of Short Term Health Insurance
There are several benefits that make short term health insurance appealing for the right situations:
✅ Affordable Premiums
These plans are generally much cheaper than ACA marketplace plans because they offer limited benefits and exclude high-risk individuals.
✅ Fast Enrollment
Many applicants are approved quickly and can start coverage within 24 to 48 hours.
✅ Flexibility
You can choose the length of the plan (30 to 364 days) and even cancel early if your situation changes.
✅ Wide Provider Networks
Some plans offer access to broad national networks, giving you more choices for doctors and hospitals.
Cons of Short Term Health Insurance
While the lower price is attractive, it’s important to understand the trade-offs:
❌ Limited Coverage
Many essential health benefits are not covered. If you have chronic conditions or require ongoing care, a short term plan may not be suitable.
❌ No ACA Protections
Short term plans don’t have to cover pre-existing conditions or offer guaranteed renewability.
❌ Coverage Caps
Many plans have annual or lifetime coverage limits, which can be financially risky if you face a major illness or accident.
❌ State Restrictions
Not all states allow short term plans, and some limit the length of coverage or renewals.
Is Short Term Health Insurance Right for You?
Ask yourself the following questions to help determine if short term health insurance is a good fit:
- Do you need coverage for just a few months?
- Are you generally healthy and not currently undergoing treatment?
- Are you OK with limited benefits in exchange for lower premiums?
- Do you understand what’s not covered by the plan?
If you answered yes to most of these, a short term plan could be a smart temporary solution.
However, if you have pre-existing conditions, are pregnant, or need comprehensive coverage, you may be better off exploring options through the Health Insurance Marketplace or programs like Medicaid.
How to Shop for a Short Term Health Insurance Plan
When comparing plans, make sure to consider:
- Monthly premium
- Deductible amount
- Coinsurance and copay
- Out-of-pocket maximum
- Coverage exclusions
- Lifetime or annual benefit caps
Also, read the fine print carefully. Some policies have strict limitations and may not pay for care you assumed was covered.
Alternatives to Short Term Health Insurance
If a short term plan doesn’t meet your needs, here are a few alternatives to consider:
- ACA Marketplace Plans – Even outside of Open Enrollment, you may qualify for a Special Enrollment Period due to life events.
- Medicaid or CHIP – Based on income, you may qualify for free or low-cost government programs.
- COBRA Coverage – If you’ve lost a job, COBRA lets you keep your employer’s plan (but often at a higher cost).
- Healthcare Sharing Ministries – These are not insurance, but members share healthcare costs in a community-based model.
- Fixed Indemnity Plans – These pay a set cash amount per day or service but don’t offer full coverage.
Final Thoughts
Short term health insurance can be a useful tool for bridging a gap in coverage. It’s fast, flexible, and budget-friendly—but it’s not a substitute for full health insurance. If you’re healthy and just need temporary protection, it might be the perfect fit. But if you need comprehensive care or have ongoing health needs, it’s wise to look at other options.
Always take time to compare plans, understand the limitations, and choose what works best for your situation. Healthcare is personal, and so should be your insurance.
