Short-Term Health Insurance 2027

Short-term, limited-duration insurance (STLDI) is temporary medical coverage that fills a gap between other coverage. It is cheaper than an ACA plan, but it is not comprehensive coverage.

Where the rules stand

• The 2024 federal rule still formally limits short-term plans to a 3-month initial term and 4 months total, including renewals, for plans sold on or after September 1, 2024.
• On August 7, 2025, the Departments of Labor, Health and Human Services, and the Treasury said they do not intend to prioritize enforcement of that definition while new rulemaking is pending, and they will not penalize states that apply their own definition.
• That means state law controls what is available. Some states allow terms up to 364 days or longer with renewals, some cap plans at 90 or 180 days, and some ban short-term plans entirely. See our article on which states allow a year-long short-term plan for the current state-by-state picture.

Common reasons people buy short-term coverage

• Between jobs or waiting for employer coverage to start
• Waiting for Marketplace coverage to start
• A recent graduate or a dependent who aged off a parent's plan
• A temporary or seasonal worker
• Missed open enrollment and no special enrollment period

Pros and cons

Important to know

• Short-term plans are not minimum essential coverage. The federal tax penalty is $0, but California, Massachusetts, New Jersey, Rhode Island and Washington, D.C. have their own coverage mandates.
• Losing short-term coverage when it ends does not open a special enrollment period for a Marketplace plan. Plan your next coverage before the term runs out.
• For ACA coverage for 2027, open enrollment runs November 1, 2026 to January 15, 2027 on HealthCare.gov.

Questions? Call 855-847-7020 or email help@ihealthagents.com.

Last reviewed October 2, 2026.