Short-term health insurance was designed to provide coverage for people who are in between coverage options, are exempt from the mandate to buy insurance, or want catastrophic health coverage outside of open enrollment. Short-term coverage does not meet ACA coverage standards, but there is no federal penalty for having it instead of an ACA plan, and it does protect you and your family against the crippling debt that medical costs can have on the uninsured.
Some typical reasons that people get short-term health insurance are:
- Between jobs
- Waiting for employer group coverage to start
- Waiting for Marketplace coverage to start
- Traveling outside of network area
- A recent college graduate
- A temporary or seasonal employee
- A dependent no longer covered under parents plan
- on strike, laid-off, or a terminating employee
Pros and Cons of Short Term Insurance
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Changes in 2027
Here is where short-term health insurance stands heading into 2027:
Plan length
In August 2025, the federal government announced it would stop enforcing the 2024 rule that limited new short-term plans to 3 months (4 months with a renewal). Since then, carriers in many states have gone back to selling plans with an initial term of up to 12 months that can be renewed for up to 36 months in total. A few states, including North Carolina and Pennsylvania, still apply the 3-month/4-month limits. Federal agencies have said a new rule making the longer plan length official is on the way. State law still applies, so some states set shorter limits or ban short-term plans outright (see the state table below).
Consumer notices
Short-term plan applications and marketing materials include a notice that the coverage is not comprehensive and does not have to follow ACA rules. Fixed indemnity policies, which pay a set amount if someone is sick or hospitalized, include a notice that the coverage is not health insurance.
Open enrollment
Open enrollment for 2027 health coverage runs November 1, 2026 to January 15, 2027 in most states. Enroll by December 15, 2026 for coverage starting January 1, 2027. Some state exchanges set their own dates (New Jersey, for example, runs through January 31, 2027).
Special enrollment period
Losing or ending a short-term policy is not a qualifying life event for a special enrollment period. However, losing job-based coverage is a qualifying event, and you can enroll in an ACA plan within 60 days of that loss.
If you have a pre-existing condition or want comprehensive coverage, compare an ACA plan before choosing a short-term plan.
Fees
The federal penalty for not having health insurance was eliminated in 2019, so having a plan that does not meet ACA minimum coverage no longer triggers a federal tax penalty. However, short term plans are not available in states such as New Jersey and California that have their own state mandate.
Cancellation
If you chose to cancel your short term plan coverage at any point, you may do so. If the coverage is cancelled during the first 10 days of purchase, you usually receive a full refund. If the coverage is cancelled after the first 10 days, you usually receive a prorated refund based on the unused benefit.
Ineligibility
You will usually be denied short-term health insurance coverage if any of the following apply to you:
- Cancer or tumor
- Heart disease (including prior heart attack, heart surgery, or chest pain)
- Stroke
- COPD (chronic obstructive pulmonary disease) or emphysema
- Crohn’s Disease
- Liver Disease
- degenerative disc disease
- rheumatoid arthritis
- Kidney Disorder
- Diabetes
- degenerative joint disease of the knee
- alcohol abuse or chemical dependency
- any neurological disorder
- HIV or AIDS
- Pregnant
- In the process of adoption
If you are looking for insurance to cover your pre-existing conditions, we can refer you to an agent who can help you find a health insurance plan that to cover these conditions.
Call or Text: (312) 726-6565.
What does short-term health insurance not cover?
Any of the following may not be covered by short-term health insurance depending on the carrier:
- Skin care such as acne or moles
- Chronic pain
- Sports injuries
- Injury occurring while intoxicated
- Any joint replacement surgery
- Hernia surgery
- Maternity costs
- Some brand prescription drugs
- Substance abuse counseling
Who is short-term health insurance good for?
Short-term health insurance is a good option for anyone that is currently healthy but wants to make sure that they are covered in case of a sudden illness or injury. Remember that if someone has a pre-existing conditions, they may be rejected from short-term plans and will definitely not get any of the costs associated with that pre-existing cost paid for with their insurance. While the benefits are not extensive, they do safeguard you from financial catastrophe. These plans are better for single adults or couples without kids because the high deductibles.
Who should avoid short-term health insurance?
While short-term health insurance can be a great plan for many, the following groups of people should avoid it:
- Anyone with a significant, on-going pre-existing condition
- Pregnant women
- Diabetics
- Anyone with a history of substance or alcohol abuse that may enter a rehab program
- Families with special needs children
- The elderly
- Anyone that uses a large amount of prescription drugs
- Anyone that wants more comprehensive health insurance coverage
How much cheaper is short-term health insurance than long-term plans?
Long-term health insurance policies usually cost around $400 in premiums for individuals and over $1,000 for families. The average short-term health insurance plan will save individuals almost $300 and $750 for families.
What is the average cost of short-term health insurance?
The average cost of short-term health insurance for individuals is about $115 a month. This number increased to about $275 if you want to get an entire family covered by the plan. This number can be deceiving, though, because it does not account for the high deductible that short-term policy holders must pay. The average deductible for individuals is $5,000 and $15,000 for families. There is no federal tax penalty for choosing a short-term plan over an ACA plan; that penalty ended in 2019.
How the deductible works for a family in a short-term plan
The short-term deductible for a family works the same as the deductible of a long-term plan. Usually, there is a both a deductible for the entire family and for each individual in the family. If the deductible for each family member is $500 for each individual and $1500 for the family, a combined total of $1500 must be paid before the insurance kicks in for the family.
However, if over $500 is spent on one individual in the family, then the insurance will cover that person (and only that person).
Are short-term health insurance plans worth it?
As with most things, this really depends on both your perspective and position. Anyone that is not covered and is worried about not being covered in an emergency should definitely sign up for short-term health insurance. Those that are healthy, have pre-existing conditions, or have a large number of prescription drugs and are looking for more extensive coverage may want to go the long-term health insurance. It really comes down to how much you are willing to pay and what benefits you are looking for.
Can I buy a 12 or 36 month short-term plan in 2027?
Yes, in many states. Because federal regulators are not enforcing the 2024 three-month limit while they write a new rule, many carriers again offer initial terms of up to 12 months, renewable for up to 36 months in total. Available terms depend on your state and the carrier, and some states still cap or ban short-term plans.
Is there a limit to the amount of benefit that I can receive from a short-term plan?
Many short-term plans do have a limit to the benefit that policyholders receive from them. This number varies on a variety of factors including: plan, carrier, state, and individual being covered. Often, short-term health insurance providers cap this amount at about $1,000,000, but the cap can be different than this amount.
Do most health insurers offer short-term health insurance coverage?
When 2019 began, many health insurance providers had decided not to provide short-term because of the public's reluctance to buy them because of how short the policies were.
However with the recent changes to the structure of how short-term health insurance plans work, there has been an increased number of carriers that are willing to provide short-term plans. Carriers that sell short-term plans include Allstate Health Solutions, UnitedHealthOne and Pivot Health, though availability varies by state.
Is there a risk applying for short-term coverage?
No, if you do not qualify for short-term coverage you can still enroll in a marketplace plan (with 60 days after qualifying event, or during open enrollment) with no exclusions for pre-existing conditions.
Short-term Health Regulations by State
State |
Regulations / Bans |
|---|---|
Initial term up to 364 days, up to 36 months total. Renewals permitted. State bulletin 2024-02 was rescinded in July 2025. |
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No state limit on term or renewals. Terms vary by carrier. |
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Initial term up to 364 days, up to 36 months total. Confirmed by Arizona DOI Bulletin 2025-12 (Dec. 2025). |
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Initial term under 12 months, up to 36 months total. AID Bulletin 14-2025 (Oct. 2025) allows sales under state law during federal rulemaking. |
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Not available. Sale of short term plans prohibited (SB 910, 2018). |
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Not available. Legal cap of 6 months, not renewable, and plans must meet ACA-style rules; no carriers selling. |
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Not available. Legal cap of 6 months and plans must cover ACA essential health benefits; no carriers selling. |
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Delaware |
Initial term up to 3 months, 3 months total. No renewal or back-to-back plans; one policy per person per year. |
Florida |
Initial term up to 364 days, up to 36 months total. Renewals permitted; some carriers cap terms at 6 or 12 months. |
Georgia |
Initial term up to 364 days, up to 36 months total. No state duration law; some carriers cap terms at 6 months. |
Not available. Cannot be sold to anyone eligible for an ACA plan; 90-day legal cap; no carriers selling. |
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Idaho |
Initial term up to 364 days, up to 36 months total. Enhanced plans are guaranteed renewable up to 36 months; standard plans are 364 days and not renewable. |
Illinois |
Banned. Public Act 103-0649, effective January 1, 2025. First state to ban STM outright. A 2026 repeal bill (SB2757) did not advance. |
Indiana |
Initial term up to 364 days, up to 36 months total. Renewals permitted; most carriers sell 4, 6 or 12 month terms. |
Iowa |
Initial term up to 364 days, up to 36 months total. Iowa Insurance Division Bulletin 25-05; plans over 12 months must be guaranteed renewable. |
Kansas |
Initial term up to 364 days, up to 24 months total. One renewal permitted; longer coverage requires a new, underwritten policy. |
Kentucky |
Initial term up to 364 days, up to 36 months total. Renewals permitted but not required. |
Louisiana |
Initial term up to 364 days, up to 36 months total. No state duration limit; plans with a long pre-existing condition lookback are limited to 6 months. |
Not available. Plans must end by December 31 of the year issued, 24 months lifetime; no carriers selling. |
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Maryland |
Initial term up to 3 months, 3 months total. No renewal or extension. |
Not available. Sale of short term plans prohibited. |
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Michigan |
Initial term up to 185 days, 185 days total. No new plan from the same insurer within 365 days; a plan from a different insurer is allowed. |
Minnesota |
Not available. Legal cap of 185 days; no carriers selling since 2023. |
Mississippi |
Initial term up to 364 days, up to 36 months total. Renewals permitted. |
Missouri |
Initial term up to 12 months, up to 36 months total. 2021 law (HB 604) raised the term limit from 6 to 12 months. |
Montana |
Initial term up to 364 days, up to 36 months total. No state limit; many carriers sell 6-month terms. |
Nebraska |
Initial term up to 364 days, up to 36 months total. Renewals permitted if disclosed in the policy; carriers set the total. |
Nevada |
Initial term up to 185 days, 185 days total. Not renewable; no more than 185 days of coverage in any 365-day period. |
New Hampshire |
Initial term under 12 months, up to 36 months total. New law (SB 607) effective January 1, 2027; previously 6 months, not renewable. |
Not available. Sale of short term plans prohibited. |
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Not available. Legal cap of 3 months, not renewable; no carriers selling. |
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New York |
Not available. Sale of short term plans prohibited. |
North Carolina |
Initial term up to 3 months, 4 months total. NCDOI Bulletin 25-B-11: state law follows the 2024 federal limits until a new federal rule is final. |
North Dakota |
Initial term up to 12 months, 12 months total. Renewal at the insured's option, counted toward the 12 months. |
Ohio |
Initial term up to 364 days, 364 days total. One-time policy, not renewable (Ohio Bulletin 2018-05). |
Initial term up to 364 days, up to 36 months total. Renewals permitted (Oklahoma Insurance Department). |
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Oregon |
Initial term up to 3 months, 3 months total. A new policy from the same insurer within 60 days counts as a renewal. |
Pennsylvania |
Initial term up to 3 months, 4 months total. Insurance Department is still enforcing the 2024 federal limits. |
Not available. Not banned, but state rules make it unworkable; no carriers selling. |
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South Carolina |
Initial term up to 11 months, 33 months total. Renewal is optional by carrier. |
South Dakota |
Initial term under 12 months, up to 36 months total. The old 6-month, non-renewable limit was removed in 2020. |
Tennessee |
Initial term up to 364 days, up to 36 months total. No state limit; renewals permitted. |
Texas |
Initial term up to 364 days, up to 36 months total. Renewals permitted. |
Utah |
Initial term under 12 months, up to 36 months total. Renewals count toward the 36 months. |
Not available. Legal cap of 3 months and plans must cover ACA essential health benefits; no carriers selling. |
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Virginia |
Initial term up to 3 months, 6 months total. No more than 6 months in any 12; no sales during open enrollment (Va. Code 38.2-3407.21). |
Washington |
Not available. Legal cap of 3 months, not renewable; no carriers selling. |
Not available. Legal cap of 3 months, no renewal, no pre-existing condition exclusions; no carriers selling. |
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West Virginia |
Initial term up to 364 days, up to 36 months total. Renewals permitted. |
Wisconsin |
Initial term up to 12 months, 18 months total. Renewals permitted up to 18 months total. |
Wyoming |
Initial term up to 364 days, up to 36 months total. Renewals permitted. |
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