Pros and Cons of Short-Term Insurance | InsureTN

The Pros and Cons of Short-Term Health Insurance

Anastasia Iliou Affordable Care Act/Obamacare, Uncategorized

The Pros and Cons of Short-Term Health Insurance

If you miss your enrollment period and do not enroll in health insurance, you do have another option: short-term health insurance.

What Are Short-Term Plans?

Short-term plans are designed for those who need additional coverage or miss their window for getting a long-term plan. They don’t cover as much as long-term plans do and are not meant to be a long-term solution. However, they can really help you out if you’re in a bind. Most plans are valid for a year, but some are for three or six-month periods only.

A short-term plan may help if you miss open enrollment or are:

  1. In college or losing your parent’s coverage
  2. Between jobs
  3. Still waiting for your coverage to begin
  4. Almost eligible for Medicare but have a gap and need a cheap option

There is often an application fee for short-term plans, and you’ll have to disclose any pre-existing conditions (or risk a terminated policy).

Remember that even with a short-term policy, you’ll still have to pay the penalty tax for not having Obamacare-approved insurance. Short-term plans are not compliant with Obamacare because they don’t cover the ten essential benefits that ACA plans are required to cover (outpatient care, hospitalization, emergency services, mental health and addiction treatment, rehabilitation, prescription drugs, preventative medicine and disease treatment, lab services, maternity, and pediatric care).


  1. No Enrollment Period – You can purchase it any time of year
  2. Lower premiums (can be as low as $30/month)
  3. Large doctor, hospital, and pharmacy networks (usually)


  1. Usually don’t cover pre-existing conditions
  2. No additional benefits like preventative coverage and prescription drugs
  3. You’ll have to reapply after your term ends and you may not necessarily be accepted again
  4. You’ll still have to pay the tax for not having marketplace health insurance

Most major carriers offer short-term policies. If you need help enrolling, we can give you a hand!

Just call us at 615-541-4257.