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Short-term health or short-term medical insurance plans can fill a temporary gap in health insurance coverage. They can be a good fit for people who can’t get group health insurance or COBRA, or who can’t enroll in better coverage through an Affordable Care Act (ACA) plan because they missed open enrollment and aren’t eligible for special enrollment. The best short-term health insurance plans cover essential benefits at an affordable price.
It’s important to understand that short-term health insurance isn’t an adequate replacement for traditional major medical coverage. The plans are not required to cover the same essential health benefits required of ACA plans, deductibles are often very high, and pre-existing conditions are typically not covered.
For these reasons, short-term health coverage has been called “junk insurance” and is only available in around 38 states. The Biden administration issued a rule on March 28, 2024, limiting short-term health insurance plans to three months, with a single one-month extension allowed. The aim is to protect consumers from relying on them for more than a few months, and instead steer them toward more comprehensive insurance plans. The rule applies to policies issued on Sept. 1, 2024, or later.
For now, though, the plans have fewer restrictions. And despite their drawbacks, there may be times when you need to use a short-term plan in a pinch. We researched 17 plans from three major health insurance companies and evaluated their maximum coverage benefits, length of coverage, costs, prescription drug coverage, and state availability.