Short term health insurance is temporary medical coverage sold outside the ACA. It is not ACA-compliant: it can deny or exclude pre-existing conditions, skip essential benefits and cap what it pays, and it never qualifies for premium tax credits. Federal rules limit how long a plan can last, and some states ban it entirely. It can bridge a short, healthy gap, not replace real coverage.
Updated for the 2027 plan year (October 2026)
What is short term health insurance?
Short-term, limited-duration insurance (often called short-term medical or temporary health insurance) is a medical policy designed to cover a gap of a few months. Federal law treats it as an exception to the ACA’s individual-market rules, so insurers can price it and design it very differently from a Marketplace plan.
In practice that means three things. Insurers can ask health questions and turn you down. They can exclude conditions you had before the policy started. And they can leave out benefits ACA plans must cover, such as maternity care, mental health care or prescription drugs.
A KFF review of short-term products (October 2025) found that every product it reviewed excluded pre-existing conditions. About half covered prescription drugs, 60% covered mental health services and only 2% covered maternity care.
The federal short-term plan rule in 2026–2027
The current federal regulation dates from April 2024. For policies sold on or after September 1, 2024, it limits short-term plans to an initial term of no more than three months and a total of no more than four months, counting renewals and extensions. It also requires a notice telling buyers the plan is not comprehensive coverage (89 FR 23338).
That rule is still on the books, but it is not being actively enforced. On August 7, 2025, the Departments of Labor, Health and Human Services and the Treasury said they do not intend to prioritize enforcement of the 2024 definition, including the notice, until new rulemaking takes effect. HHS also said states may apply their own state-law definition of short-term coverage.
The Departments said they plan to propose a new definition. As of mid-October 2026, no replacement rule had been published in the Federal Register. The practical result: how long a short-term plan can last now depends mostly on your state, and the rules could change again during 2027.
Watch the sales pitch: a longer policy term doesn’t make short-term coverage any more like an ACA plan. The pre-existing condition exclusions, benefit gaps and lack of subsidies stay the same however long the policy runs.
Short term health insurance vs. ACA plans
ACA plans and short-term plans can look similar on a quote screen. The protections underneath them are very different, and the differences matter most when you get sick.
| Feature | ACA Marketplace plan | Short-term plan |
|---|---|---|
| Pre-existing conditions | Covered; no health questions | Can be excluded, or you can be declined |
| Essential health benefits | All ten required | Not required; often no maternity, limited drugs or mental health |
| Premium tax credit | Available by income (100%–400% FPL) | Never available |
| Annual or lifetime dollar limits | Not allowed on essential benefits | Allowed |
| Out-of-pocket maximum | Capped at $12,000 / $24,000 for 2027 | Often none, or only for some costs |
| When you can buy | Open Enrollment or a Special Enrollment Period | Any time, where state law allows |
| Losing the plan | Not applicable | Does not open a Marketplace Special Enrollment Period |
The last row trips people up. Because short-term coverage isn’t ACA coverage, it ending is not a qualifying life event. If your short-term plan runs out in April, you generally wait until the next Open Enrollment for a Marketplace plan. See how health insurance works.
Short-term health insurance rules by state
States can ban short-term plans, cap their length or set their own definition, and since August 2025 state rules matter more than federal ones. According to KFF, five states prohibit their sale outright (California, Illinois, Massachusetts, New Jersey and New York), and several more allow them on paper but have none for sale.
Here is what the official sources we checked say for states where Honesty helps most often. Whether insurers actually sell plans can differ from what the law allows, so confirm with your state insurance department before you buy.
| State | What state rules say (October 2026) | Source |
|---|---|---|
| Illinois | Banned. No new short-term policies or renewals since January 1, 2025. | Illinois DOI |
| California, Massachusetts, New Jersey | Sale prohibited by state law. | KFF |
| North Carolina | Follows the federal definition and keeps enforcing the current federal rule: 3 months initial, 4 months total. | NCDOI Bulletin 25-B-11 |
| Florida | Contract must end less than 12 months after it starts; up to 36 months total with renewals. | Fla. Stat. 627.6426 |
| Texas | State law uses the federal definition. Ask the Texas Department of Insurance what term limits apply now. | Tex. Ins. Code 1509.001 |
| Oklahoma | Less than 12 months initially; up to 36 months total. Carriers need state approval. | OID Bulletin 2025-08 |
| Wisconsin | Term up to 12 months; consecutive coverage up to 18 months total. | Wis. Stat. 632.7495 |
| Virginia | Up to 3 months; no more than 6 months in any 12; none sold during Open Enrollment. | Va. Code 38.2-3407.21 |
| Oregon | 3 months or less, including renewals. | ORS 743B.005 |
| Nevada | Up to 185 days, nonrenewable; no more than 185 days in any 365. | NAC 689A.434 |
| Washington | Up to 3 months, no renewal, none sold during Open Enrollment. | WAC 284-43-8000 |
| All other states | Check your state insurance department; rules and availability vary. | NAIC directory |
Short-term and temporary health insurance in Illinois
People still search for temporary health insurance in Illinois, but insurers can’t sell new short-term policies there or renew existing ones. Illinois residents between jobs or past Open Enrollment should look at a Special Enrollment Period, Medicaid or COBRA instead. See our Illinois health insurance guide.
Short term health insurance in North Carolina
North Carolina’s Department of Insurance told insurers in August 2025 that any short-term product sold in the state must meet the current federal rule, so plans are limited to three months plus one month of renewal. See our North Carolina health insurance guide for ACA options.
ACA alternatives in Florida
Florida law allows longer short-term terms than most states, so Floridians see these plans advertised as “ACA alternatives.” The same exclusions apply. Many Floridians qualify for a premium tax credit on a full ACA plan, so compare that first on our affordable health insurance Florida guide.
Who short-term coverage can fit, and who it doesn’t
Short-term coverage can make sense for a narrow group: healthy people with a short, defined gap who understand what isn’t covered. Even then, check whether an ACA option is available first.
It may fit if you’re
- Between jobs with a confirmed start date and employer coverage beginning soon.
- Healthy, with no ongoing prescriptions, and you missed Open Enrollment without a qualifying life event.
- Waiting a few weeks for Medicare or a new job’s waiting period, and you accept the exclusions.
It is usually the wrong choice if you
- Have any health condition, take regular medication, or are pregnant or planning a pregnancy.
- Qualify for a premium tax credit. A subsidized ACA plan gives far stronger protection.
- Recently lost job-based coverage, moved, married or had a baby. You likely have a Special Enrollment Period right now.
- Have low income. You may qualify for Medicaid, which has no enrollment deadline.
Short-term health insurance is not a substitute for ACA coverage if you have a health condition. A plan that excludes the condition you actually need treated isn’t protection.
Honesty.AI checks your life events, Medicaid and subsidy eligibility before you consider a short-term plan.
Health insurance without an employer
If you need health insurance and don’t have a job that offers it, the ACA Marketplace is the main route, and short-term coverage should come later in the list. The Marketplace bases savings on household size and expected income, not on whether you have a job, as HealthCare.gov explains.
- Self-employed, freelance or gig work: buy a Marketplace plan and estimate net self-employment income. See our health insurance for self employed guide.
- Just lost a job: you generally have 60 days to enroll in a Marketplace plan, or you can elect COBRA.
- Spouse or parent has coverage: you may be able to join their plan, and children can stay on a parent’s plan until age 26.
- Low or no income: apply for Medicaid; in states that didn’t expand it, check carefully, because subsidies start at 100% of poverty.
- Under 30: catastrophic plans are ACA plans with full protections and a high deductible.
Alternatives to compare before a short-term plan
Many people looking for temporary coverage have a better option. Compare these first.
A Special Enrollment Period
Losing job coverage, moving, marriage, a birth or adoption, and several other events open a 60-day window to buy a Marketplace plan. See our Special Enrollment Period guide. Open Enrollment for 2027 coverage runs November 1, 2026 to January 15, 2027 in HealthCare.gov states; see Open Enrollment 2027.
Medicaid and CHIP
Medicaid and CHIP accept applications all year. In most states adults qualify up to 138% of poverty ($22,025 for one person); children often qualify at higher incomes.
COBRA
COBRA keeps your exact employer plan, but you pay the full premium plus a fee. It keeps your doctors and your deductible progress. Compare it with a subsidized plan in our COBRA vs. Marketplace guide. Note that voluntarily dropping COBRA doesn’t open a Special Enrollment Period.
ACA plans bought off-exchange
Insurers also sell ACA-compliant plans directly. They carry every ACA protection, but you can’t use a premium tax credit on them, so they make sense mainly above 400% of poverty.
Fixed-indemnity and other ancillary plans
Fixed-indemnity plans pay a set amount per day in the hospital or per service, whatever the bill. Dental, vision, accident and critical-illness plans work alongside major medical coverage. They are useful add-ons, not replacements for health insurance.
Health care sharing ministries
Sharing ministries pool members’ contributions to pay medical bills. They are not insurance. Michigan’s insurance regulator notes they are not legally obligated to pay members’ costs and don’t have to cover pre-existing conditions or essential benefits.
Before you consider a health share plan as an alternative, read our neutral guide to the health care sharing ministry: how it works, why it isn’t insurance and what to ask before joining.
Questions to ask before buying a short-term plan
If you still decide a short-term plan fits, get these answers in writing first:
- How does the plan define a pre-existing condition, and how far back does it look?
- Is there a cap on total benefits, or per illness, per day or per service?
- Are prescription drugs, mental health care and maternity care covered?
- Which doctors and hospitals are in the network?
- Can the insurer review your medical history after a claim and rescind the policy?
- How long can the policy last in your state, and can you renew it?
You can check that an insurer and agent are licensed with your state insurance department, or with the NAIC’s directory of state insurance departments.
How Honesty compares ACA plans and alternatives
Most short-term ads come from sites paid to sell short-term plans. Honesty works differently. We compare ACA, alternative and ancillary plans side by side, starting with the coverage that protects you most.
Honesty.AI checks your Special Enrollment Period, Medicaid and subsidy eligibility first. If a subsidized ACA plan fits, it shows you the real cost for your ZIP code. If you have no ACA option until the next Open Enrollment, it explains a short-term plan’s exclusions in plain words before you buy. Honesty® Insurance Services, LLC (NPN 21094885) is licensed in 49 states and DC, and a licensed agent stands behind the technology.
Compare every option, not just the one being advertised
Honesty.AI is the world’s first patented, licensed AI insurance agent. It compares ACA, alternative and ancillary plans for your family’s needs, checks Medicaid and subsidies, and can enroll you, 24/7 by chat, voice or text. It works for you, not the carriers.
Frequently asked questions
Is short term health insurance worth it?
It can be for a healthy person with a short, defined gap who has no ACA option. It usually isn’t if you have a health condition, take regular medication, are pregnant, or qualify for a premium tax credit or a Special Enrollment Period.
How long can a short-term health plan last in 2027?
The 2024 federal rule limits plans to 3 months initially and 4 months total, but federal agencies are not prioritizing enforcement while they rewrite it. State law now sets most limits: some states ban these plans, and others allow up to 36 months.
Does short-term health insurance cover pre-existing conditions?
Usually not. Short-term plans are not ACA-compliant, so they can ask health questions, decline you and exclude conditions you had before the policy started. ACA Marketplace plans must cover pre-existing conditions.
Can I use a premium tax credit on a short-term plan?
No. Premium tax credits apply only to ACA plans bought through the Marketplace. Short-term plans never qualify for subsidies.
Can I buy short term health insurance in Illinois?
No. Illinois has banned the sale and renewal of short-term limited-duration policies since January 1, 2025. Illinois residents can look at a Special Enrollment Period, Medicaid or COBRA instead.
How do I get health insurance without an employer?
Most people use the ACA Marketplace, where savings depend on household income, not on having a job. Other options include a spouse’s or parent’s plan, COBRA after a job loss, Medicaid, and catastrophic plans for people under 30.
For a side-by-side look at ACA plans, short-term medical, fixed indemnity and sharing ministries, see our individual health insurance guide.
Between jobs? Compare every option in our health insurance for unemployed guide before you buy a short-term plan.
Pregnant or planning a pregnancy? Read our guide to health insurance for pregnant women instead.
Supplemental policies such as critical illness insurance pay cash after a covered diagnosis, but they add to major medical coverage rather than replace it.
Accident insurance and hospital indemnity plans pay fixed cash amounts and are not a substitute for health insurance.
Keep learning: Special Enrollment Periods, COBRA vs. Marketplace, Open Enrollment 2027, 2027 subsidies and how Honesty.AI works.
