Need temporary health insurance? 5 tips to guide your search

Looking for temporary health insurance?

Maybe you’ve recently lost an employer-sponsored plan. Maybe you’re waiting for new coverage to begin. Or maybe there’s some other reason you’re now without health insurance.

Don’t worry. You can bridge a short coverage gap with temporary health insurance.

And it’s a good idea.¹ Why?

• If you break your arm, the out-of-pocket cost to fix it without insurance can cost up to $7,500.
• A three-day hospital stay costs approximately $30,000.
• Comprehensive cancer care can cost hundreds of thousands of dollars.

Temporary health insurance isn’t a long-term solution.

But this type of coverage can help if you experience an accident or major illness during a period when you don’t have comprehensive health insurance. Make sense?

If you’re looking for temporary health insurance, these five tips will help guide your search.

1. Know the basics

Temporary health insurance is also called short-term health insurance.

This type of plan is designed to help cover medical costs for unforeseen accidents or illnesses during a time frame when you don’t have health insurance.

It’s typically less expensive than comprehensive health insurance.²

But there are some limitations.³

• You can only get temporary health insurance for up to three months plus one month extension, for a total of 4 months in a 12-month period.
• Temporary health insurance typically doesn’t cover preexisting conditions or preventive care.

2. Understand limitations

Temporary health insurance plans don’t provide the same comprehensive coverage as an Affordable Care Act (ACA) plan or an employer-sponsored health plan.

These type of plans are NOT required to cover the ACA’s 10 essential benefits, such as:⁴

• Preventive care
• Maternity care
• Mental health services
• Prescription drugs (outside of hospitalization)

Some temporary medical insurance plans will provide coverage for some of these services. But before enrolling in a short-term health plan, carefully check the plan’s benefits.

3. Plan for temporary

How long does a temporary health insurance plan last?

It’s temporary. New regulations for short-term health plans recently changed, beginning June 17, 2024.²

Based on the new rules, you can get temporary health insurance for “no more than 3 months after the original effective date . . . and taking into account any renewals or extensions, has a duration of no longer than four months total.”

Also, temporary health insurance plans can often be canceled, without penalty, at any time during the coverage term.

4. Check your eligibility

Can you get temporary health insurance between jobs?

Yes, it’s the most common reason people seek this type of plan.

A temporary health insurance plan might make sense if you are:

• Waiting to be enrolled in a group plan by a new employer
• A recent college graduate looking for work or starting a new job where it may be a few months before you have access to health insurance
• Transitioning from a spouse or parent’s health plan
• Making a career change
• Seasonally employed
• Need coverage outside of the Open Enrollment Period
• Waiting for enrollment in Medicare after retirement

5. Evaluate the pros & cons

A temporary health insurance plan may work for your needs if you are:

• Generally healthy
• Between comprehensive health insurance options, and…
• Need affordable gap insurance

But it’s important to understand the pros and cons that come with temporary medical insurance.

✅Pro: Premiums are often lower than Affordable Care Act (ACA) plans

• Because coverage is limited, short-term plans may provide people with an affordable premium.

✅Pro: Short-term plans have coverage terms up to four months

• New federal rules limit the length of temporary health insurance to “no more than three months and the maximum coverage period to no more than four months.”³
• After that, you’ll need to look at other options like an ACA plan, employer-sponsored plan or if you qualify, a Medicare or Medicaid plan

✅Pro: Approval for short-term tends to be fast

• After applying for temporary health insurance, your medical history is reviewed.
• If you are approved for coverage, benefits can begin in as little as 24 hours.

❌Con: You can be denied coverage because of preexisting conditions

• Temporary medical plans require medical underwriting, meaning that your medical history and information will be considered before you are provided with coverage.
• These short-term plans do not cover preexisting conditions

❌Con: Temporary health insurance isn’t available in all states

Short-term plans aren’t offered in all states. States that don’t offer short-term health insurance include:⁵

• California
• Colorado
• Connecticut
• Hawaii
• Maine
• Massachusetts
• New Jersey
• New Mexico
• New York
• Rhode Island
• Vermont
• Washington

Looking for temporary health insurance?

Let’s make it as easy as possible. Give us a call at (800) 827-9990 to talk with a licensed insurance agent or find one in your area.

We’ll review your situation and help you identify the best options for temporary health insurance, or another type of plan, to help you get the coverage you need.