Best short-term health insurance companies of 2024

Best short-term health insurance companies of 2024

Everest and UnitedHealthcare have the best short-term health insurance, according to our analysis. We assessed the average cost, coverage and customer complaints of various insurers to determine the best short-term health insurance companies.

The best short-term health insurance companies of 2024

Everest: Best short-term health insurance for low out-of-pocket costs

UnitedHealthcare: Best short-term health insurance for maximum coverage

Why trust our insurance experts

The team of insurance experts evaluates hundreds of insurance products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.

112 data points analyzed.

5 levels of fact-checking.

3 levels of editorial review.

Top-rated short-term health insurance companies of 2024

Best short-term health insurance for low out-of-pocket costs

Everest

Best short-term health insurance for maximum coverage

UnitedHealthcare Compare the best short-term health insurance plans

Average monthly health care premiums are for comparison purposes only. They are based on online quotes for a 35-year-old nonsmoking female with no children who lives in Dallas, Texas. Your rates may differ.

We analyzed rates and coverage options to determine the best short-term health insurance companies. Each short-term health insurance company was eligible for up to 100 points, based on its performance in the following key categories.

Cost: 60 points. Short-term health insurance plans were compared using a $5,000 deductible. The rate profile was a female 35-year-old nonsmoker who lives in Dallas, TX. Cost was analyzed based on these factors:

Monthly premium cost: 15 points.

Coinsurance percentage: 15 points.

Maximum annual out-of-pocket amount: 15 points.

Total coverage amount: 15 points.

Vision and Dental: 10 points. Short-term health insurance companies that also sell individual vision and dental coverage for an additional premium received the maximum amount of points.Consumer complaints: 30 points. Short-term health insurance companies with the lowest levels of complaints received the highest score. We collected complaint data from the National Association of Insurance Commissioners (NAIC), which shows the volume of health insurance consumer complaints against each company.

Short-term health insurance can provide affordable, temporary medical coverage when you’re between jobs, self-employed, coming off your parent’s insurance, waiting to be eligible for Medicare or waiting for open enrollment to apply for an Affordable Care Act (ACA) plan. 

Although premiums are relatively inexpensive, short-term medical insurance lacks the comprehensive coverage you expect from the best health insurance plans and can have high out-of-pocket costs if you seek treatment.

What is short-term health insurance?

Short-term health insurance is a type of temporary health coverage that provides limited benefits for a month to three years, according to the National Association of Insurance Commissioners (NAIC).  

Despite short-term health insurance plans having similar health care coverages as Affordable Care Act health insurance policies, they are not ACA-compliant plans. This means they may not include the 10 essential health benefits an ACA plan does, like pregnancy and newborn care, mental health and substance use disorder services or prescription drug coverage.

They also do not provide the same protections and regulations for consumers as comprehensive health insurance plans offer. And you could be denied coverage if you have a pre-existing condition, including pregnancy.

How long does short-term health insurance last?

In 2018, the Trump administration expanded access to short-term health plans, allowing them to last for up to three years if the coverage is renewable. But the Biden administration proposed a rule in July 2023 to limit short-term insurance plans to three months, with the option to renew for another month. If the new rule is finalized, new short-term health insurance policies will be limited to initial terms of three months or less.

Short-term health insurance laws by state

While the federal government currently allows short-term health insurance for up to one year, with the option to renew coverage for up to three years, many states have adopted limits or complete bans.

Source: National Library of Medicine.

Who can get short-term health insurance?

If you live in a state offering temporary health insurance plans, you can apply for short-term coverage. But unlike Health Insurance Marketplace plans, your current health could disqualify you for coverage. 

When you apply for short-term health insurance coverage, the application includes health questions to determine the insurance company’s risk of insuring you. If your answers reveal existing medical conditions, it could mean you won’t be approved.

If you get approved and file a claim for health benefits, the insurance provider will check your medical history. If they determine a pre-existing condition is contributing to your health issue, they could deny your claim and even cancel your policy.

How do you qualify for short-term health insurance? 

You have to medically qualify for temporary health insurance coverage, and only people living in states offering limited-duration plans can apply. Though people applying for traditional health insurance plans must do so during an open enrollment period or a special enrollment period with a qualifying event, you can apply for short-term health coverage anytime.

How much does short-term health insurance cost?

The average cost of short-term health insurance is $208 a month, according to our analysis of rates. Short-term medical insurance costs depend on several factors, including:

Your age.

Whether you want to include coverage for a spouse or dependent(s) and their ages.

The types of services the plan offers.

The coverage details you choose, like deductible, coinsurance and total policy coverage.

Smoking and health status of all covered individuals.

Make sure to read the fine print of a temporary health plan before purchasing to know what’s covered and what isn’t covered. The cheaper the plan, the less coverage it will have, with higher out-of-pocket costs and lower total policy coverage.

What does short-term health insurance cover?

Since short-term health insurance plans don’t have to comply with federal laws under the ACA, coverage can vary widely from plan to plan. 

Short-term health policies may cover:

Doctor’s office visit.

Emergency room visits.

Preventive care.

Urgent care services.

It’s important to compare short-term plans and read the policy carefully to know what it covers and doesn’t cover so you can find a plan that meets your specific needs.

What does short-term health insurance not cover?

Traditional health insurance plans include coverage for maternity care, substance abuse and mental health services. However, short-term health insurance policies typically exclude coverage for these medical services.

Pre-existing conditions, chronic conditions, long-term care and certain surgeries and treatments are also typically excluded when you buy temporary coverage, said Dr. David Berg, CEO and co-founder of Redirect Health.

You should also be aware of coverage for prescription drugs. Some short-term health policies include prescription coverage, while others exclude it. Those that exclude prescriptions may offer a discount card instead. Although the insurer won’t cover medication costs, the discount card can help you get a lower price on prescription drugs.

How to find the best short-term health insurance for your needs

Here are things to consider when shopping for the best short-term health insurance:

Determine your coverage needs. “Consider factors such as pre-existing conditions, prescription drug needs and any expected medical treatments,” said Evan Tunis, president of Florida Healthcare Insurance. Knowing what coverage you need will make it easier to compare short-term health insurance plans.

Research insurance companies. Now that you know your coverage needs, look for reputable providers with positive customer reviews, said Tunis. A company with excellent financial strength ratings shows a solid ability to pay claims. Everest and UnitedHealthcare both have an A+ financial strength rating from AM Best. 

Understand the plan’s limitations. Most short-term plans won’t cover pre-existing medical conditions and may have other exclusions that differ from plan to plan. Carefully review each plan’s limitations to determine which is best for you.

Duration

“COBRA (Consolidated Omnibus Budget Reconciliation Act) is a federal law that allows employees to continue their employer-sponsored health insurance for up to 18 months after they leave their job,” said Tunis. In some cases, they can extend coverage for up to 36 months.

Short-term health insurance bridges the coverage gap when you’re waiting for your new employer’s coverage to kick in, between jobs, waiting for Medicare eligibility or self-employed. Coverage can last anywhere from a month to 36 months, though that may be shortened to four months if the Biden rule proposal passes.

Coverage

COBRA coverage is the same as your existing employer-sponsored health insurance policy. You are continuing the same plan you had while employed.

Eligibility

You must have a qualifying event, like job loss, and have had an active health insurance plan with your employer to be eligible for COBRA coverage.

Short-term health policies are medically underwritten, so you have to meet the insurer’s medical guidelines to qualify. You also have to live in a state where temporary health coverage is available. 

Cost

Healthcare costs are substantial for COBRA since you’re paying the entire premium, including the portion your employer was paying.

Short-term plans have more affordable premiums, but you’ll also typically have less comprehensive coverage than your employer’s COBRA plan.

Short-term health insurance FAQs How long is short-term insurance good for?

How long a short-term insurance plan is good for depends on the plan you buy. Some policies are only good for one month, while others may be good for up to three years. The longer the plan duration, the more you can expect to pay for it.

Who needs short-term insurance?

You might need short-term insurance if you can’t find cheap health insurance or don’t have COBRA insurance after being laid off or fired. You may also benefit if you are about to start a new job or qualify for health insurance under your spouse soon and want temporary coverage. If you’re under 30 or have severe financial problems but can’t afford catastrophic health insurance, short-term health insurance may be a good fit.

What are the advantages of short-term insurance?

Advantages of short-term health insurance include:

You can enroll anytime and don’t have to wait for open enrollment.

You can choose the plan duration that best fits your needs from the available plans in your state.

If approved, your coverage can start as early as the next day. 

Short-term coverage is generally cheaper than traditional health insurance plans or COBRA coverage.