Short-Term Health Insurance
Definition current for the 2026 plan year · Last reviewed July 2026
In one sentence: Cheap temporary coverage capped at 4 months under current federal rules — medically underwritten, excludes pre-existing conditions.
Short-term plans are the marketplace's unregulated cousin: cheap ($100–$300/month), fast (coverage within days), and available year-round — because they follow none of the ACA's rules. Under current federal regulation they're capped at 3 months, renewable to 4 total.
What the low price buys out of: pre-existing conditions are excluded (and applications are medically underwritten — they can simply decline you), essential benefits like maternity and mental health are typically missing, annual dollar caps return, and claims can be rescinded after underwriting review. None of this matters in a lucky gap month; all of it matters in an unlucky one.
Legitimate use: a genuine bridge — between jobs, waiting for employer coverage to start, the gap before open enrollment — for someone healthy who understands the exclusions. Illegitimate use: as a permanent substitute for real coverage. Before buying one, confirm you don't qualify for a SEP or a subsidy that makes a real plan comparable — this guide walks the checklist.