Health Insurance Series
Health · Short-Term Plans
Short-Term Health Plans —
When They Work, When They Don't
Short-term limited-duration insurance (STLDI) plans are cheaper than ACA marketplace plans — sometimes much cheaper. The trade-off is significant: they're not real health insurance in the ACA sense. They're a bridge product, not a destination.
What short-term plans don't cover
Pre-existing conditions (often excluded entirely), pregnancy/maternity, mental health, prescription drugs (limited), and essential health benefits the ACA requires. You can be denied coverage based on health history. They're medically underwritten.
When short-term plans make sense
• Between jobs, waiting for new employer coverage to start
• Missed open enrollment, need something until next window
• Young + healthy, no pre-existing conditions, willing to take risk
• Bridging until Medicare eligibility (62-65 gap)
• COBRA is too expensive and marketplace doesn't fit
When they're a bad idea
• You have ANY pre-existing condition — it won't be covered
• You're planning a pregnancy — not covered
• You take regular prescriptions — limited or excluded
• Long-term use as a substitute for real coverage — exposes you to massive bills
• Anyone who would qualify for marketplace subsidies — marketplace is almost always better with subsidies
Bridge gap vs. real coverage — which do you need?
We'll review your situation and tell you whether short-term is the right gap solution or whether you should hold out for marketplace.
Carriers We Represent
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Common questions
What is a short term health plan?
Temporary coverage that is cheaper than an ACA plan because it can exclude pre existing conditions and limit benefits. It is a bridge, not a replacement.
When does a short term plan make sense?
Between jobs, waiting for an employer plan to start, or covering a few months until Medicare. Healthy people with no ongoing care needs.
When is a short term plan a bad idea?
When you have a pre existing condition, take regular medication, or could be pregnant. Those are the things it does not cover.
Keep Reading
More in Health Insurance
Sources
Educational content only. State regulations on short-term plans vary widely.