What is Short Term Health Insurance and how does it work?
Updated: Jan 30
Short-term health insurance plans in can be purchased by those who can meet the underwriting guidelines used by insurers.
Short-term health insurance plans usually come with blanket exclusions for pre-existing conditions, they are not adequate for someone who is in need of medical care and seeking a policy that will cover those needs.
If you’re in need of health insurance coverage, first determine whether you’re eligible to enroll in an ACA-compliant major medical plan (Obamacare plan). These plans are available during the annual open enrollment period that runs from November 1 to December 15. And they’re also available at other times of the year if you experience a qualifying life event that triggers a special enrollment period.
If you do end up qualifying for premium subsidies (most exchange enrollees do), you may be surprised at how affordable the monthly premiums are after the subsidy is applied.
ACA-compliant policies are purchased on a month-to-month basis, so you can enroll in one even if you’re only going to need it for a few months before another policy takes effect. So for example, if you’ll soon be covered by an employer’s plan or Medicare, you can still enroll in an ACA-compliant plan during open enrollment or a special enrollment period, and then cancel the coverage when your new plan takes effect.