Last Updated on October 27, 2024 by Edward Harris

Short-term health insurance coverage is  affordable, and available in every state. These policies are specifically offered when you only need benefits for less than a year, or miss your state’s Open Enrollment  As the nation’s premier website for affordable medical plans, we  review all of the available  options, and provide you with the  lowest  rates in all areas. Temporary plans offer stop-gap benefits that can quickly become effective, and can also be customized to meet your specific situation.

Comprehensive (office visits and prescriptions included) and catastrophic (major medical only) are available. Urgent Care visits are often covered with only a copay and Telemed visits are provided on many plans with 24/7 coverage. Exclusions and restrictions will vary, depending upon the company and policy. Maximum coverage is typically between $500,000 and $2 million.

 

New 2024/2025 Rule Change

A new rule (effective September 1, 2024) limits the duration of temporary plans to three months (four months with a policy renewal. Referred to as “junk insurance,” by a current administration, these plans are popular options when an Open Enrollment deadline is missed. STLDI (short term limited duration insurance) plans were issued regulatory amendments by the Treasury and Department Of Health and Human Services. The Public Health Service Act no longer recognizes short-term plans as “individual health insurance.” Fixed indemnity and hospital indemnity plans are still not considered “compliant” coverage, and are designed to help reduce out-of-pocket medical expenses.

Companion Life offers plans with $100,000 maximum limits, although coverage is not available in all states. Many 2025 plans slightly reduced their rates, and additional benefit riders can now be added. Allstate purchased National General’s book of business and has kept rates stable. Coverage is widely available and the Aetna OpenChoice PPO and Cigna PPO networks can be utilized.

What Is Short-Term Health Insurance? This type of coverage provides temporary healthcare benefits to individuals and families. Plans can be purchased out side of Open-Enrollment periods (November 1-January 15), and premiums are typically less than non-subsidized Marketplace policies.

We realize that every individual or family has unique needs, and a particular time frame that they need coverage, especially when someone loses dependent status. Although COBRA and Marketplace options may be offered, alternative plans sometimes are more cost-effective, especially if you have a lapse in coverage. However, typically, for Seniors, it is not a viable option. Medicare (along with Supplement and MA plans) provides comprehensive benefits to all applicants.

Affordable Medigap options may be offered that offer many more benefits. Applicants that are eligible for Medicare or Medicaid, generally, should not apply for short-term plans, since other more cost-effective options are available. A separate Senior Open Enrollment begins October 15th and ends December 7th.

When the need a policy for 1-4 months (or possibly more), our goal is to find the lowest cost plan that gives you the benefits you need. Only the most-respected companies are used, and each carrier is registered, licensed, and approved in your state of residence. If we wouldn’t use the plan ourselves, or for our own family members, you won’t see it either.

There are many questionable “discount” companies we will not recommend, since they don’t deliver on the promises that they make to consumers. We know you need a safety net for unexpected claims and that’s the type of contract we look for.

 

Who Needs Short-Term Coverage?

Temporary benefits are designed for anybody that is without healthcare coverage, especially if they are in transition. Plans are available to individuals, families, the self employed or anyone that is uninsured. This type of  policy is ideal for any US resident that is on COBRA, currently unemployed or between jobs, waiting for other medical coverage to become effective, or a recent school graduate. Occasionally, applicants waiting to be approved for Medicaid or Medicare benefits may benefit by these types of policies. However, once those benefits are active, other than supplemental plans, additional policies are often not needed.

NOTE: Most carriers do not offer temporary coverage to applicants that have reached age 65. Senior Medigap options are available in all states, and Medicare alone provides comprehensive benefits. Uninsured Seniors can possibly obtain coverage when the Open Enrollment period begins October 15th. Advantage and Supplement plans may be available. Part D prescription drug plans are offered in all states, and many Advantage contracts include prescription drug benefits, including discounts for mail order buying. Other common Advantage plan perks include dental, vision, hearing, and fitness club memberships. Many $0 premium plans are offered.

Although the creation of the  “Affordable Care Act” (Obamacare) created federal subsidies for needy households, and eliminated pre-existing exclusions, it also established annual “Open Enrollment” periods (November and December). However, if you miss the Open Enrollment deadline, and don’t qualify for a special approved exemption, you’ll have to wait another 9-12 months to apply for guaranteed coverage again, unless you become eligible for an employer-provided plan. A short waiting period of 90 days (or less) may be required before new Group benefits begin. Generally, businesses conduct an annual Open Enrollment during the last few months of the calendar year.

 

Employer-Provided Group Benefits

When an employer-provided plan is selected,  it may not be possible to change to a different plan or alter deductibles and copays until 12 months later. Also, unless the group coverage is determined to be “unaffordable” (primary insured), a Marketplace subsidy would not be available. Exchange plans without subsidies, are often quite expensive.

This situation, which frequently occurs, is when a short-term policy is sometimes recommended. Although not a substitute for a conventional comprehensive plan, it will provide major medical benefits for the period of time between the OE periods. However, unlike an official Exchange contract, temporary policies do not cover your pre-existing conditions, whether it’s as serious as diabetes or cancer, or something relatively minor, such as asthma, allergies, or acid reflux.

If you develop a condition after the policy has been issued, your treatment will be covered as long as the policy is active. However, limitations may be placed on certain treatment and prescription drugs. A maximum benefit restriction may result in a large hospital bill if a low limit ($100,000 or $250,000) is selected. This situation often occurs in “limited benefit” plans, which are not often recommended. Typically, limits of at least $1 million per person should be selected. Many carriers offer $2 million on temporary contracts.

Also, the 10 “Essential Health Benefits,” that are mandatory coverage for Marketplace contracts, are not all contained in a short-term policy. For example, although prescriptions, ER, and hospital expenses are included, maternity and pediatric dental coverage are often excluded. However, the elimination of these benefits is one of the reasons temporary coverage is so economical. The annual maximum of covered benefits is also lower. Instead of unlimited provided benefits, caps of $250,000 to $2 million are likely.

 

The Typical Application Process

Find the cheapest temporary health plan.

Short-Term Medical Coverage Is For Individuals And Families

The standard  application is usually completed in less than 10 minutes. There are very few medical questions and it can be completed online or by mail/fax. If the application is filled out online, processing will be much quicker. In some states, you can receive instant approval.  Most carriers also allow the applicant to complete an online link that a broker has provided. Effective dates may be requested approximately 30-60 days in advance, if needed. Policies can be canceled by the insured at any time. Guaranteed renewal options are offered in many states.

National General, a large reputable carrier, offers guaranteed renewal in most of its service area. UnitedHealthcare, through its subsidiary “Golden Rule,” can also issue and approve policies very quickly. Many other companies across the US continue to offer very competitive pricing. Additional smaller carrier that offer policies include IHC, Everest Prime, LifeShield,  and Standard Life. Anthem Blue Cross recently began to re-offer temporary coverage with limited pre-existing conditions covered.

Many temporary  insurance plans can be purchased in increments of three months. Billing is flexible as policies can be paid with an annual lump sum payment or monthly installments. If the policy needs to be canceled early, most companies offer a pro-rated refund on the unused coverage. Since this type of plan is designed to protect a need for only a few months, it should not be used if  benefits are needed for more than one year. Before the initial three-month period has expired, you can apply for additional coverage.

For example, if the policy period is from January 1 to March 31, in late March, you can apply for a policy with an effective date of April 1. In many states, up to 364 days of continuous coverage is offered. Additionally,  consecutive 12-month coverage is offered in several states. During the primary Open Enrollment period (November 15-January 15), several states limit temporary plan availability.

Policies are often approved within 24-48 hours since there are very few medical questions to answer and physicals are not required. Credit scores, income, and family medical history do not affect the premium you pay.  If you have major health conditions, you could be denied and you would have to seek a more expensive “Open Enrollment” plan. Other reasons for denial include taking medications for high blood pressure, high cholesterol, any form of diabetes or heart ailment.

 

Coverage And Benefits

Unexpected injuries and illnesses form the basis of each policy.  Typical coverages include inpatient hospital and outpatient services, emergency room and urgent care, ambulance and home care (subject to policy limits) and diagnostic services. Some short term health insurance plans also include office visit and prescription drug benefits, although a deductible may apply. Or, by paying an extra premium, limited preventive or primary care physician (pcp) visits can be added. Generally, specialist visits are subject to a deductible or coinsurance. and a limit to the number of covered office visits may be applied.

Teledoc (speak to a doctor online) is included on many plans, including National General policies. The policyholder is provided access to board-certified physicians 24/7, and 365 days per year. The response time is typically less than 20 minutes, and member satisfaction is generally very high. The physician can typically quickly diagnose minor medical issues, and prescribe medications to be picked up at the customer’s local pharmacy. Expanded services are offered by several carriers.

Once the specified deductible has been met (usually between $250 and $10,000) 80%-100% of the medical expenses will be paid by the policy. The remaining balance (if any) is paid by yourself until the total maximum out-of-pocket expense limit is reached. Lifetime maximum limits are usually between $500,000 and $1 million. To reduce premiums, you can choose a 30% or 50% coinsurance option. Another option that reduces the premium, is to select the “deductible per claim” feature, instead of  “deductible per policy period.”  By selecting this option, you will not meet the deductible cap after your first claim. However, out-of-pocket expenses can be substantial if multiple claims occur during the policy period.

NOTE: Some policies only offer $250,000 of protection, so a prolonged chronic illness could require treatment that gets close or exceeds that limit. Also, if you are receiving long-term treatment (counseling, medications, procedures, transfusions etc…), if the initial period of coverage expires, you will have to re-apply for an additional term of benefits. If this occurs and your treatment began during the first policy period, your new policy may not be approved, and other options may not be available. Staying aware of Open Enrollment deadlines for Marketplace plans is critical.

However, since the Open enrollment period for Marketplace coverage typically begins in November (for January 1 effective dates), if your temporary plan does not terminate until after January 1, you can secure guaranteed coverage.  Premiums will probably be much higher, unless you qualify for a federal subsidy.  Several states operate their own Exchanges and have lengthened the Open Enrollment Period. For example, the Pennie Pa Exchange initially extended the OE period to January 15th. During pandemics or other health emergencies, OE periods are extended.

 

Items Not Covered

Pay Lowest Premium On Medical Plans

Cheap Temporary Medical Plans Are Often Approved In A Day

Although premiums are low, this type of policy is not designed to cover preventive benefits including routine physicals and well care visits, dental or vision expenses and long-term health care. Depending on the policy, your deducible may apply to each claim, or each cause. An “each clause” temporary medical insurance plan (see above) can result in substantial out-of-pocket expenses if multiple claims occur. Reducing the deductible will lower your possible maximum out of pocket expense.

But lower deductibles can cause the cost of the temporary health insurance policy to rise. Also, pre-existing conditions are generally not covered and the renewal of the policy is not guaranteed. For that reason, this concept works best when the exact time frame of needed coverage is known. However, if your current policy expires and there have not been significant changes in your health, you may apply for an additional policy.

Of course, if a heart attack or cancer is currently being treated,  another policy form would have to be used. That’s why it is extremely important to coordinate temporary plan expiration dates with the beginning of Open Enrollment periods in your state. Many major carriers, such as Aetna, Cigna, and Humana, do not offer  temporary policies. Anthem Blue Cross offers these types of plans in some of the states it operates.

Short-term health plans have increased in popularity by about 30%, mainly due to low premiums, and avoiding high-cost Affordable Care Act options. Consumers that qualified for large federal subsidies were typically better off with Exchange policies. Also, since almost any physician or hospital can often be chosen, it provides better flexibility than Exchange plans. The expansion of product availability in most states will be determined by the Biden Administration’s desire to expand access to ST options. Currently, countrywide expansion is not expected.

 

Current Short-Term Health Insurance Rates In Selected Areas

Prices shown are most current monthly rates for 40-year-old male

Richmond, VA

$70 – Companion Life $10,000 deductible, 20% coinsurance, and $1 million maximum coverage. Indemnity plan.

$83 – Companion Life $5,000 deductible, 20% coinsurance, and $1 million maximum coverage. Indemnity plan.

$106 – UnitedHealthcare $5,000 deductible, 30% coinsurance, and $1 million maximum coverage. PPO plan.

$118 – Everest $5,000 deductible, 50% coinsurance, and $1 million maximum coverage. Indemnity plan.

$130 – UnitedHealthcare $2,500 deductible, 30% coinsurance, and $1 million maximum coverage. PPO plan.

$132 – Companion Life $2,000 deductible, 20% coinsurance, and $1 million maximum coverage. Indemnity plan.

$165 – Everest $1,000 deductible, 50% coinsurance, and $1 million maximum coverage. Indemnity plan.

Columbus, OH

$78 – UnitedHealthcare $15,000 deductible, 30% coinsurance, and $1 million maximum coverage. PPO plan.

$83 – National General $10,000 deductible, 0% coinsurance, and $1 million maximum coverage. PPO plan.

$94 – National General $5,000 deductible, 20% coinsurance, and $1 million maximum coverage. PPO plan.

$103 – Companion Life $5,000 deductible, 20% coinsurance, and $1 million maximum coverage. Indemnity plan.

$123 – Everest $2,500 deductible, 50% coinsurance, and $1 million maximum coverage. Indemnity plan.

$149 – Everest $1,000 deductible, 50% coinsurance, and $1 million maximum coverage. Indemnity plan.

$292 – Companion Life $1,000 deductible, 20% coinsurance, and $1 million maximum coverage. Indemnity plan.

Nashville, TN

$71 – Independence American $10,000 deductible, 50% coinsurance, and $2 million maximum coverage.

$79 – National General $10,000 deductible, 0% coinsurance, and $1 million maximum coverage. PPO plan.

$86 – Independence American $5,000 deductible, 50% coinsurance, and $2 million maximum coverage.

$89 – National General $5,000 deductible, 20% coinsurance, and $1 million maximum coverage. PPO plan.

$117 – Independence American $2,500 deductible, 50% coinsurance, and $2 million maximum coverage.

$120 – Everest $2,500 deductible, 50% coinsurance, and $1 million maximum coverage. Indemnity plan.

$148 – Everest $1,000 deductible, 50% coinsurance, and $1 million maximum coverage. Indemnity plan.

Charlotte, NC

$83 – Companion Life $10,000 deductible, 20% coinsurance, and $1 million maximum coverage. Indemnity plan.

$87 – Everest $10,000 deductible, 50% coinsurance, and $1 million maximum coverage. Indemnity plan.

$98 – Companion Life $5,000 deductible, 20% coinsurance, and $1 million maximum coverage. Indemnity plan.

$103 – Everest $5,000 deductible, 50% coinsurance, and $1 million maximum coverage. Indemnity plan.

$123 – Everest $2,500 deductible, 50% coinsurance, and $1 million maximum coverage. Indemnity plan.

$152 – Everest $1,000 deductible, 50% coinsurance, and $1 million maximum coverage. Indemnity plan.

$276 – Companion Life $1,000 deductible, 20% coinsurance, and $1 million maximum coverage. Indemnity plan.

Pittsburgh, PA

$99 – UnitedHealthcare $12,500 deductible, 30% coinsurance, and $2 million maximum coverage

$118 – UnitedHealthcare $10,000 deductible, 30% coinsurance, and $2 million maximum coverage

$143 – UnitedHealthcare $5,000 deductible, 30% coinsurance, and $2 million maximum coverage

$176 – UnitedHealthcare $2,500 deductible, 30% coinsurance, and $2 million maximum coverage

$265 – UnitedHealthcare $1,000 deductible, 30% coinsurance, and $2 million maximum coverage

Milwaukee, WI

$105 – Companion Life $10,000 deductible, 20% coinsurance, and $1 million maximum coverage. Indemnity plan.

$107 – Everest $10,000 deductible, 50% coinsurance, and $1 million maximum coverage

$124 – Everest $5,000 deductible, 20% coinsurance, and $1 million maximum coverage

$127 – Companion Life $5,000 deductible, 20% coinsurance, and $1 million maximum coverage. Indemnity plan.

$138 – UnitedHealthcare $7,500 deductible, 30% coinsurance, and $1 million maximum coverage

$144 – Everest $2,500 deductible, 50% coinsurance, and $1 million maximum coverage

$174 – Everest $1,000 deductible, 50% coinsurance, and $1 million maximum coverage

Kansas City, MO

$85 – UnitedHealthcare $15,000 deductible, 30% coinsurance, and $2 million maximum coverage

$86 – Everest $10,000 deductible, 50% coinsurance, and $1 million maximum coverage

$100 – Everest $5,000 deductible, 20% coinsurance, and $1 million maximum coverage

$113 – UnitedHealthcare $7,500 deductible, 30% coinsurance, and $1 million maximum coverage

$127 – Companion Life $5,000 deductible, 20% coinsurance, and $1 million maximum coverage. Indemnity plan.

$129 – Everest $2,500 deductible, 50% coinsurance, and $1 million maximum coverage

$143 – Everest $1,000 deductible, 50% coinsurance, and $1 million maximum coverage

Note –  National General previously offered ST coverage. However, the carrier’s book of business was purchased by Allstate.

Phoenix, AZ

$86 – UnitedHealthcare $15,000 deductible, 30% coinsurance, and $1 million maximum coverage

$105 – Companion Life $10,000 deductible, 20% coinsurance, and $1 million maximum coverage. Indemnity plan.

$112 – Everest $10,000 deductible, 50% coinsurance, and $1 million maximum coverage

$113 – Companion Life $5,000 deductible, 20% coinsurance, and $1 million maximum coverage. Indemnity plan.

$124 – Everest $5,000 deductible, 50% coinsurance, and $1 million maximum coverage

$140 – UnitedHealthcare $5,000 deductible, 30% coinsurance, and $1 million maximum coverage

$144 – Everest $2,500 deductible, 50% coinsurance, and $1 million maximum coverage

$172 – UnitedHealthcare $2,500 deductible, 30% coinsurance, and $1 million maximum coverage

$174 – Everest $2,500 deductible, 50% coinsurance, and $1 million maximum coverage

El Paso, TX

$111 – Companion Life $10,000 deductible, 20% coinsurance, and $1 million maximum coverage

$125 – Companion Life $5,000 deductible, 20% coinsurance, and $1 million maximum coverage

$174 – Everest $5,000 deductible, 50% coinsurance, and $1 million maximum coverage

$204 – Everest $2,500 deductible, 50% coinsurance, and $1 million maximum coverage

$222 – Companion Life $2,000 deductible, 20% coinsurance, and $1 million maximum coverage

$274 – UnitedHealthcare $5,000 deductible, 30% coinsurance, and $1 million maximum coverage

$285 – Everest $1,000 deductible, 50% coinsurance, and $1 million maximum coverage

$356 – Companion Life $1,000 deductible, 20% coinsurance, and $1 million maximum coverage