Short-Term Medical Coverage

Short-term medical plans are temporary health coverage designed to bridge a gap rather than replace a full ACA-compliant plan. They tend to have lower premiums and can be bought at any time of year, which makes them appealing if you're between jobs, waiting for coverage to start, or missed the enrollment window.

But short-term plans are not subject to the ACA's rules. That means they can charge you more or deny you based on pre-existing conditions, cap your benefits, and exclude whole categories of care like maternity, mental health, or prescriptions. They also do not count as 'minimum essential coverage,' so in most cases they don't satisfy the individual coverage requirement.

Because premiums are cheaper for a reason, the tradeoff can be steep. A short-term plan might look fine on paper but leave you with a large uncovered bill if you're hospitalized. That's why they're best understood as a true stopgap — carrying you through a short, defined gap — rather than a long-term strategy.

You'll often see 'short-term limited-duration insurance' as the formal name, because that's exactly what it is. Coverage can be bought for a limited number of months at a time, and some plans can be renewed. The specific rules vary by state, and some states restrict or prohibit them.

If you're healthy, between coverage, and need something quick, a short-term plan can make sense for the gap. But if you have ongoing care needs or prescriptions, or if you qualify for a premium tax credit, a full Marketplace plan is usually the safer and often the more affordable choice once the subsidy is factored in.