Short-Term Health Insurance Cost Estimator
About Short-Term Health Insurance
Short-term health insurance provides temporary coverage for people between jobs, waiting for employer coverage to begin, or in other coverage gaps. These plans are generally much cheaper than ACA-compliant plans but offer significantly fewer protections. They can exclude pre-existing conditions, have lifetime and annual benefit limits, and do not cover essential health benefits like maternity care or mental health. Federal rules allow short-term plans to last up to 12 months with renewals possible for up to 36 months. However, several states — including New York, California, New Jersey, and Massachusetts — have banned or severely restricted short-term plans to protect their ACA markets. Always review plan details carefully before enrolling in a short-term plan.
Frequently Asked Questions
Does short-term insurance cover pre-existing conditions?
Generally no. Short-term plans are not required to follow ACA rules and can deny coverage or exclude treatment for pre-existing conditions. This is a major limitation compared to ACA marketplace plans.
Why is short-term insurance unavailable in some states?
States like New York, California, New Jersey, and Massachusetts have restricted or banned short-term plans because they can draw healthy people away from the ACA marketplace, destabilizing the risk pool and raising premiums for those who remain.
Can I use short-term insurance as a bridge to Medicare?
Yes, short-term plans are commonly used by people who retire before age 65 and need coverage until Medicare begins. However, carefully evaluate coverage limits relative to your healthcare needs.
Is short-term insurance tax-deductible?
Short-term health insurance premiums may be deductible as medical expenses if you itemize deductions and your total medical expenses exceed 7.5% of AGI. They do not qualify for the self-employed health insurance deduction.
What happens if I get sick on a short-term plan?
You may face high out-of-pocket costs, coverage denials for pre-existing conditions, or plan cancellation. Short-term plans can rescind coverage if they determine a condition was pre-existing, leaving you with substantial unpaid bills.
Disclaimer: Results are estimates only. Short-term plan availability and rules vary by state. Consult a licensed insurance professional for actual quotes.