What States Can I Get a Year Long Catastrophic or Short Term Plan in 2025?

Rules about short term or catastrophic plans vary from state to state. National General offers a great national PPO, with access to Aetna's Open Choice PPO network. 

 

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State	Initial Policy Duration Max	Renewals?	Maximum duration (including renewals)	Notes
Alabama	3 months	Y	4 months
Alaska	3 months	Y	4 months
Arizona	3 months	Y	4 months
Arkansas	3 months	Y	4 months
California	None Available	N/A	N/A
Colorado	None Available	N/A	N/A
Connecticut	None Available	N/A	N/A
Delaware	None Available	N/A	N/A
District of Columbia	3 months	N	4 months
Florida	3 months	Y	4 months
Georgia	3 months	Y	4 months
Hawaii	None Available	N/A	N/A
Idaho	3 months	N	4 months
Illinois	3 months	N	4 months	An enrollee cannot purchase a new short-term plan from the same issuer within 60 days of the termination of a previous short-term plan
Indiana	3 months	Y	4 months
Iowa	3 months	Y	* The Iowa Insurance Division proposed extensive new rules for short-term plans that last more than 3 months, but the state's rules committee rejected them. The Insurance Division is working on a new proposal, but the details aren't yet public.
Kansas	3 months	One	4 months
Kentucky	3 months	Y	4 months
Louisiana	3 months	Y	4 months
Maine	3 months	Y	4 months
Maryland	3 months
Massachusetts	None Available	N/A	N/A
Michigan	3 months	No	4 months
Minnesota	3 months	No, but can purchase additional plans	4 months
Mississippi	3 months	Y	4 months
Missouri	3 months	Y	4 months	* Plans can be renewed to a total of 36 months as long as each term is six months or less.
Montana	3 months	Y	4 months
Nebraska	3 months
Nevada	3 months	N	4 months
New Hampshire	No sell state	N/A	N/A
New Jersey	None Available	N/A	N/A
New Mexico	None Available	N/A	N/A
New York	None Available	N/A	N/A
North Carolina	3 months	Y	4 months
North Dakota	3 months
Ohio	3 months	N	4 months
Oklahoma	3 months	Y	4 months
Oregon	3 months	Yes, but the 3-month total duration limit includes renewals.	4 months
Pennsylvania	3 months	Y	4 months
Rhode Island	None Available	N/A	N/A
South Carolina	3 months	Y	4 months
South Dakota	3 months	N	4 months	South Dakota statute also requires insurers offering short-term plans to file a statement certifying that the policies are not being sold as a substitute for major medical insurance, and are instead supplemental insurance
Tennessee	3 months	Y	4 months
Texas	3 months	Y	4 months
Utah	3 months	No	4 months
Vermont	None Available	N/A	N/A
Virginia	3 months	N	4 months
Washington	None Available	N/A	N/A
West Virginia	3 months	Y	4 months
Wisconsin	3 months	Y	4 months	Consumers can start new coverage (with the same insurer) after a 63-day break.
Wyoming	3 months	Y	4 months

 

Pros and cons of short term coverage

While the federal government has relaxed the rules for short-term health insurance, each state can make its own insurance regulations. In fact, insurance is largely regulated by the state and not the federal government.

The following states still completely prohibit short-term health insurance, according to this report:

• New York
• California
• Colorado
• New Jersey
• Massachusetts

Vermont has moved in another direction. Instead of prohibiting short-term health insurance, the state has tried to force these temporary policies to offer all of the Essential Health Benefits that Obamacare policies must provide. Also, even though the federal government now allows for a 12-month term, Oregon, Illinois, and Maryland have passed state laws that only allow for more limited periods.

Yes, short-term health insurance can provide many people with a great value and a good solution when they need affordable coverage quickly. It’s just that these non-ACA plans aren’t regulated the same way that ACA policies are, so people must understand some risks they may take by opting for the temporary protection of short-term health insurance. The majority of states recognize that short-term health insurance performs a vital role, so they rely upon licensed agents to explain the pros and cons of various health insurance choices to their clients.

 

These are some potential drawbacks of short-term health insurance:

• Short-term coverage may not offer any benefits for maternity, or most pre-existing conditions. If you suffer from some pre-existing conditions, you could be denied coverage, unlike with Obamacare.
  
  
• While some short-term coverage is guaranteed renewable, some is not. This means that you have to re-apply for short-term health insurance at the end of every term. The problem is that if you or a family member has developed a serious illness, they may not get accepted. If you live in state that offers 12 month short-term plans, you can avoid this predicament. 

ACA policies cannot decline applicants because of pre-existing conditions. Even with the federal government’s relaxed rules for short term coverage, most people should still consider these temporary policies as a temporary solution. It’s just that people in most states can rely upon them for longer periods of time than they could in the past. 

 

Because STLD plans are not subject to the ACA's consumer protections and market reforms, they tend to offer less coverage and cost less than ACA-compliant products. Industry watchers worry that healthier or less-informed consumers will gravitate toward STLD plans based on price. If enough younger, healthier people leave the individual insurance market to purchase STLD plans, premiums for standard coverage in that market may rise.

 

Who should consider short term health insurance plans?

In most cases, short term health insurance typically costs much less than ACA major medical health insurance. 

• Premiums for unsubsidized ACA plans average about five times as much as for short term health insurance.
  
  
• Even premiums for subsidized Obamacare plans average about three times more than premiums for short term coverage.

Short term coverage could offer a good solution for people who want an affordable way to protect themselves against unexpected or emergency medical bills. In addition, short term health insurance can provide the proof of coverage that people need to participate in various activities or vocations.

Easy applications, modest premiums, and no waiting for enrollment periods can all make short term health insurance seem like an attractive choice for people who lack affordable access to permanent medical insurance. Good examples of people who can benefit from short term health insurance might include:

• Young people who have just aged off their parent’s plan
• Families who missed Open Enrollment for the ACA Marketplace
• Seniors who will turn 65 and collect Medicare benefits in a few months
• New employees who have to wait for group benefits to begin

Note that even if you missed this year’s Obamacare Open Enrollment, you may still have the option to enroll in a plan if you qualify for a Special Enrollment Period. Some examples of events that will trigger a Special Enrollment Period include loss of job-related group health, divorce, marriage, income changes, and moving away from a network plan’s service area. If you don’t qualify, you still have the option of enrolling in short-term health insurance at any time of year.

 

How to compare short-term health insurance policies

At iHealth, we don’t just make it easy to compare short term health insurance, we also allow you to compare short term health insurance with other health insurance options. Additional choices can include both Obamacare and non-Obamacare medical plans. Besides individual and family medical plans, we can also help you shop for dental and group health insurance. Explore your health insurance options now.