🏥 Short-Term Health Insurance: Pros, Cons, and Best Providers
Introduction
Short-term health insurance provides temporary medical coverage for individuals who experience gaps in their insurance, such as job loss, waiting for employer benefits, or recent college graduates.
Unlike Affordable Care Act (ACA) plans, short-term insurance is not required to cover essential health benefits and often excludes pre-existing conditions.
This guide explores the pros and cons of short-term health insurance, its costs, and the best providers in 2025.
How Does Short-Term Health Insurance Work?
✔ Designed for temporary coverage (from 1 month to 12 months)
✔ Ideal for people between jobs, recent graduates, or those waiting for new coverage
✔ Provides limited benefits, usually covering emergency care and doctor visits
✔ Can be renewed up to 36 months (depending on state laws)
Short-term health plans do not comply with the ACA, so they offer lower premiums but cover fewer services.
Pros of Short-Term Health Insurance
✅ Affordable Monthly Premiums – Often cheaper than ACA plans
✅ Fast Approval – Can start coverage in as little as 24 hours
✅ Flexible Coverage Durations – Choose between 1-12 months
✅ Access to Nationwide Networks – Some plans allow visits to any doctor
Cons of Short-Term Health Insurance
❌ Limited Coverage – Excludes maternity care, mental health, and preventive services
❌ No Pre-Existing Condition Coverage – If you have a condition, you may be denied
❌ Not Renewable in Some States – Some states ban or limit short-term plans
❌ High Out-of-Pocket Costs – Deductibles and copays can be expensive
Who Should Consider Short-Term Health Insurance?
✔ Individuals Between Jobs
✔ Recent College Graduates
✔ Early Retirees Waiting for Medicare
✔ Those Who Missed ACA Open Enrollment
✔ Temporary Workers or Freelancers Without Employer Coverage
Who Should Avoid Short-Term Health Insurance?
❌ People with Chronic Conditions – No pre-existing condition coverage
❌ Families Needing Comprehensive Care – No maternity or pediatric care
❌ Those Eligible for ACA Subsidies – ACA plans may be cheaper with financial aid
Cost of Short-Term Health Insurance
| Cost Factor | Short-Term Insurance | ACA Health Insurance |
|---|---|---|
| Monthly Premiums | $100 – $300 | $400 – $700 (before subsidies) |
| Deductibles | $2,500 – $10,000 | $1,500 – $4,500 |
| Copays | Higher, varies by provider | Lower, standardized |
| Out-of-Pocket Max | High, often no cap | $9,450 (individual in 2025) |
Coverage Options: What Does It Include?
✅ Doctor Visits – Some plans cover office visits with copays
✅ Emergency Room Care – Covered, but high copays may apply
✅ Hospitalization – Limited coverage, often with high deductibles
✅ Surgical Procedures – Usually covered for emergencies only
What Is Not Covered?
❌ Pre-Existing Conditions – No coverage for chronic conditions
❌ Maternity Care – Pregnancy and childbirth services are excluded
❌ Mental Health Services – No coverage for therapy or counseling
❌ Preventive Care – No free screenings, vaccines, or wellness visits
Short-Term Health Insurance vs. ACA Plans
| Feature | Short-Term Insurance | ACA Health Plans |
|---|---|---|
| Pre-Existing Conditions | ❌ Not covered | ✅ Covered |
| Essential Health Benefits | ❌ Limited | ✅ Includes 10 essential benefits |
| Preventive Care | ❌ Not included | ✅ Free preventive care |
| Maternity Coverage | ❌ Excluded | ✅ Covered |
| Affordability | ✅ Lower premiums | ❌ Higher, but subsidies available |
How to Choose the Best Short-Term Health Insurance Provider
✔ Coverage Options – Look for doctor visits, ER care, and hospital benefits
✔ Network Availability – Choose a provider with a large doctor network
✔ Affordability – Compare premiums, deductibles, and copays
✔ Customer Reviews – Read user experiences before purchasing
Top Short-Term Health Insurance Providers (2025)
| Provider | Best For | Key Features |
|---|---|---|
| Pivot Health | Budget-friendly plans | Flexible terms, large doctor network |
| UnitedHealthcare | Broad coverage options | Access to a large provider network |
| Everest | High-deductible plans | Low premiums, short waiting period |
| National General | Customizable plans | Choice of deductibles and copays |
How to Apply for Short-Term Health Insurance
✔ Step 1: Compare plans on provider websites
✔ Step 2: Check state regulations (some states ban short-term insurance)
✔ Step 3: Select the best plan for your needs
✔ Step 4: Apply online and get instant approval
FAQs About Short-Term Health Insurance
❓ Can I renew a short-term health plan?
✅ Some states allow renewals for up to 36 months, but others don’t
❓ Does short-term insurance cover prescriptions?
✅ Some plans offer limited prescription drug coverage
❓ Is short-term health insurance cheaper than ACA plans?
✅ Yes, but it covers fewer services
❓ Can I buy short-term health insurance anytime?
✅ Yes, there’s no open enrollment period
❓ Are there states that don’t allow short-term plans?
✅ Yes, states like California, New York, and New Jersey ban them
Conclusion
Short-term health insurance is a cost-effective temporary solution for people between jobs, waiting for new coverage, or missing ACA enrollment.
However, it does not cover pre-existing conditions, preventive care, or essential health benefits. If you qualify for an ACA subsidy, it may be a better option.
