Short term health insurance is a type of temporary health coverage for those who are in between other options. Short term won’t protect you from the fee for not having health insurance under the Affordable Care Act (ObamaCare) as it doesn’t count as minimum essential coverage. Short term also doesn’t have to follow other rules set-forth by the Affordable Care Act and can discriminate cost and coverage based on health status, pre-existing conditions, and gender. While it won’t protect you from the fee and can deny you for preexisting conditions, short term can be a smart choice for some due to the fact that it can be purchased outside of open enrollment.
Facts on Short Term Health Insurance
- Short term health insurance typically lasts between one and twelve months.
- Short term doesn’t count as minimum essential coverage and won’t protect you from the fee. Given this, short term can be a good option for those who choose to pay the fee for not having coverage but still want a health plan.
- Short term coverage can be a smart idea when you’re in between coverage options or if you’re is traveling.
- Unlike major medical coverage, which can only be purchased during open enrollment, short term can be purchased 365 days a year.
- Short term coverage is often cheaper than major medical.
- Short term coverage doesn’t have to cover essential benefits, so it’s important to understand what your plan does and doesn’t cover.