By Jason Cummings 
Temporary Health Insurance Options
After conducting a thorough evaluation, Everest and UnitedHealthcare stand out as the top performers in the realm of short-term health insurance.
To identify the leading providers of short-term health insurance, we conducted a comprehensive assessment, taking into account factors such as average costs, coverage options, and customer complaints across different insurers.
The Best Short-Term Health Insurance Companies in 2024
Everest is highly recommended for its affordability and low out-of-pocket costs in the realm of short-term health insurance.
UnitedHealthcare:on the other hand, is renowned for its comprehensive coverage and wide range of benefits, making it a popular choice for short-term health insurance.
Short-term health insurance offers a cost-effective solution for individuals navigating job transitions, self-employment, transitioning from parental coverage, waiting for Medicare eligibility, or seeking coverage until the open enrollment period for an Affordable Care Act (ACA) plan.
Although short-term health insurance premiums are generally budget-friendly, it’s crucial to note that this type of coverage may provide fewer benefits found in high-end health insurance plans. Furthermore, seeking treatment with short-term medical insurance could lead to substantial out-of-pocket costs.
What is Temporary health insurance?
The National Association of Insurance Commissioners (NAIC) describes short-term health insurance as a temporary form of health coverage offering limited benefits, typically lasting from one month to three years.
While short-term health insurance plans may offer healthcare coverage similar to Affordable Care Act (ACA) health insurance policies, it’s important to note that they do not adhere to ACA standards.
As a result, these plans may exclude the ten essential health benefits mandated by the ACA, such as coverage for pregnancy and newborn care, mental health and substance use disorder services, or prescription drugs.
How long does Temporary health insurance last?
In 2018, the Trump administration extended the renewal period for short-term health plans to up to three years.
However, in July 2023, the Biden administration proposed a rule to restrict short-term insurance plans to a maximum of three months, with the possibility of renewal for an additional month.
If this proposed rule is finalized, future short-term health insurance policies will be limited to initial terms of three months or less.
Temporary health insurance laws by state
- Alabama: Up to three years
- Alaska: Up to three years
- Arizona: Up to three years
- Arkansas: Up to three years
- California: Banned
- Colorado: Banned
- Connecticut: Six months
- Delaware: Three months
- District of Columbia: Three months
- Florida: Up to three years
- Georgia: Up to three years
- Hawaii: Banned
- Idaho: Up to three years
- Illinois: Six months
Who can get Temporary health insurance?
People living in states where temporary health insurance plans are available can apply for short-term coverage. However, unlike Health Insurance Marketplace plans, eligibility for these plans may depend on your current health condition.
When applying for short-term health insurance, you’ll need to answer health-related questions. These answers help the insurance company evaluate the risk of insuring you. If your responses indicate existing medical conditions, your application may not be approved.
If your application is approved and you submit a claim for health benefits, the insurance provider will examine your medical history. If they find that a pre-existing condition contributed to your health problem, your claim might be denied, and your policy could be terminated.
How do you qualify for Temporary health insurance?
Meeting medical requirements is crucial to qualify for temporary health insurance coverage. Additionally, this option is only open to residents in states that provide limited-duration plans.
Unlike the application process for traditional health insurance plans, which typically require enrollment during specific periods like open enrollment or special enrollment with a qualifying event, individuals can apply for short-term health coverage at any time.
How much does Temporary health insurance cost?
Based on our rate analysis, the average monthly cost for short-term health insurance is $208. Several factors influence the costs associated with short-term medical insurance, including:
- Your age.
- Coverage for a spouse or dependent(s) and their respective ages.
- Specific coverage details you choose, such as deductible, coinsurance, and total policy coverage.
The smoking and health status of all individuals covered under the policy are also considered.
Before making a purchase, it’s crucial to carefully review the details outlined in the terms and conditions of a short-term health plan.
What does Temporary health insurance cover?
Since short-term health insurance plans are not obligated to comply with federal regulations under the ACA, the extent of coverage can vary significantly between plans.
Short-term health policies may cover the following:
- Visits to the doctor’s office.
- Emergency room visits.
- Preventive care.
- Urgent care services.
It’s crucial to thoroughly compare different short-term plans and carefully review each policy to understand the inclusions and exclusions. This process helps you find a plan that aligns with your specific needs.
What does Temporary health insurance not cover?
Traditional health insurance plans commonly cover maternity care, substance abuse treatment, and mental health services. In contrast, short-term health insurance policies typically do not include these medical services.
Dr. David Berg, CEO and co-founder of Redirect Health, points out that pre-existing conditions, chronic conditions, long-term care, certain surgeries, and treatments are often excluded from temporary coverage plans.
Redirect Health
Paying attention to prescription drug coverage is crucial when selecting a short-term health insurance plan. Some policies may include prescription coverage, but others may not.
If prescriptions are not covered, some insurers may offer a discount card as an alternative. While the insurer does not cover medication costs, the discount card can help individuals obtain lower prices for prescription drugs.
How to Discover the Perfect Short-Term Health Insurance for Your Requirements
When searching for the best short-term health insurance, it’s essential to consider the following factors:
Assess your coverage needs: Evaluate your pre-existing conditions, prescription drug requirements, and anticipated medical treatments.
Research insurance companies: Look for reputable providers with positive customer reviews. Evan Tunis, President of Florida Healthcare Insurance, recommends choosing companies with excellent financial strength ratings, such as Everest and UnitedHealthcare, which have an A+ rating from AM Best, indicating their ability to fulfill claims reliably.
When searching for short-term health insurance, it’s important to compare the coverage, costs, deductibles, and exclusions of different plans to ensure they align with your needs, as advised by Dr. Berg.
Consider the plan network: If you have preferred healthcare providers, check if they are part of the plan’s network.
Understand the plan’s limitations: Since most short-term plans do not cover pre-existing medical conditions, carefully review each plan’s limitations and exclusions to find the best fit for your needs.
Temporary health insurance FAQs
How long is Temporary health insurance good for?
The duration of effectiveness for a short-term insurance plan depends on the specific plan you choose. Plans can vary greatly; some offer only monthly coverage, while others can extend up to three years. Generally, the longer the plan duration, the higher the cost.
Who needs Temporary health insurance?
Short-term insurance can play a crucial role in several scenarios. It can be a practical choice if you’re having difficulty finding affordable health insurance or don’t have COBRA coverage after a layoff or termination.
Short-term insurance can also be beneficial when transitioning to a new job or expecting eligibility for spousal health insurance, providing temporary coverage.
Additionally, individuals under 30 or experiencing significant financial difficulties and unable to afford catastrophic health insurance may find short-term health insurance as a suitable solution.