5 things to know about short-term health insurance in 2024

HealthMarkets discusses what may (and may not) change about temporary coverage next year. Here’s what to know.

Are you in between jobs? Did you recently quit your job or miss the Open Enrollment Period for Affordable Care Act (ACA) plans? (Those are health insurance plans you can get through the federal Marketplace.)

Any of these situations can be stressful. You know that you need health coverage, but it may not be something you have the time or energy to shop around for.

That’s where short-term medical insurance can come in handy. These plans can provide you with health coverage for a limited amount of time when you don’t have a traditional health insurance plan.

While short-term plans have long been a popular option, new regulations proposed by the federal government may change how you can use the coverage.

Here are 5 things to know about what is (and isn’t) changing about short-term medical plans in 2024.

Need more information about short-term plans? Call a licensed insurance agent at (800) 827-9990 to discuss what’s available, or browse your options online today.

1. You may only be able to use short-term plans for 4 months.

Prior to 2023, you could buy a short-term health insurance plan for up to 12 months in some states, and then renew it 2 more times — which meant that you could have it for 3 years total.

But the Biden administration has proposed new regulations, looking to limit how long you can get a short-term plan. Those limitations would boil down to 3 months — or a maximum of 4 months if they’re extended.

This may work if you only have a short time where you’re uninsured — for example, a couple of months while you’re in between jobs, says Tasha Riggs, a licensed insurance agent for HealthMarkets based in Westminster, Colorado. But if you need insurance for longer than 4 months, you may run into problems when your short-term insurance expires, she notes.

That’s why, if you think you may need insurance for more than a few months, Riggs recommends that you buy an ACA insurance plan. (You can call a licensed insurance agent at (800) 827-9990 to discuss your options.)

2. Your short-term health insurance plan still may not cover your preexisting conditions.

Affordable Care Act plans offer essential benefits, such as prescription drug coverage. And by law, insurers can’t deny you coverage for preexisting conditions, such as cancer or type 2 diabetes. But those same rules don’t apply to a short-term health insurance plan. They can deny you coverage if you have a preexisting condition.

You may also have to undergo medical underwriting, where you fill out a health questionnaire and provide all of your recent health records. If you have a preexisting condition, that could disqualify you, so you may be better off purchasing an ACA plan or extending your employer-sponsored insurance through COBRA. (COBRA stands for the Consolidated Omnibus Budget Reconciliation Act, which gives workers and their families who lose their health benefits the right to stay on their employer benefits for a limited time.)

3. Your short-term plan still may not cover preventive care.

Another one of those essential health services that ACA plans cover but short-term medical plans may not: preventive care. If these services are important to you, you’ll want to check your short-term plan’s benefits carefully to see what’s covered. You may also want to shop around to see if there’s a short-term plan that does meet your immediate needs. You can do so by browsing your options online today.

4. Your short-term plan will still be able to get you covered almost immediately.

A short-term plan could start as soon as the day after you apply, notes Riggs. That’s why if you need quick, temporary insurance between jobs, a short-term plan may be helpful.

5. Your short-term plan may cost you less than a traditional health plan.

If cost is high on your list, here’s something to consider: short-term plans tend to cost less than comprehensive health insurance plans.

That’s why, if you’re healthy and just need something for a month or so, a short-term plan may be a more attractive option, notes Riggs. Just be aware that some plans also have dollar limits on covered benefits and are subject to preexisting limitations and exclusions. So, if you become seriously ill or have a major accident, short-term insurance may not offer enough coverage.

And remember: short-term insurance isn’t a replacement for comprehensive health insurance. You can learn more about that by calling a licensed insurance agent at (800) 827-9990 to discuss what’s available, or browsing your options online today.