Is There An Alternative to Obamacare? (2027)

Yes, but each alternative trades coverage for price. The main options for people who do not want, or do not qualify for, an ACA Marketplace plan are below.

Short-term health insurance

A short-term plan is temporary, cheaper coverage that mainly protects against large unexpected medical bills. It is not comprehensive coverage.

• Pre-existing conditions are generally not covered, and you can be declined.
• Preventive care is usually not covered at no cost.
• It does not count as minimum essential coverage.
• It does not qualify for ACA premium tax credits.

Availability and length depend on your state. Federal enforcement of the 2024 limit of 4 months is on hold, so state law controls. Some states allow a year or more, some cap plans at 90 or 180 days, and some ban them. See our article on year-long short-term plans by state.

Fixed indemnity and add-on plans

Where short-term plans are not sold, fixed indemnity plans pay a set cash amount for events such as a hospital stay. They are not health insurance, and they pay a fixed amount no matter what the bill is. Accident and critical illness plans can add cash benefits on top of other coverage.

Other options to check first

• Employer coverage if you or your spouse are offered it.
• Medicaid or CHIP if your income qualifies.
• ACA plans with subsidies. For 2027 the enhanced credits have expired, but credits still exist for incomes from 100% to 400% of the federal poverty level.
• Health care sharing ministries are not insurance, and sharing is not guaranteed.

The penalty

The federal penalty for not having coverage is $0. California, Massachusetts, New Jersey, Rhode Island and Washington, D.C. have their own mandates and penalties.

Not sure what fits? Call 855-847-7020 or email help@ihealthagents.com.

Last reviewed October 2, 2026.