How Does Short-Term Health Insurance Compare to COBRA?

A COBRA plan allows you to maintain the exact same coverage you had through your employer or previous group benefits. Any amount you’ve already paid toward your deductible can be helpful overall. However, you’ll likely pay more for the same coverage—your employer often helps pay your premium. Your former employer can charge up to 102% of the plan’s cost (2% is for administrative expenses). Short-term medical plans may cost less (depending on your age and other factors) but also offer much less coverage, many exclusions based on the policy or your pre-existing conditions, and few of the essential benefits required by ACA plans.

When Might I Need Short-Term Health Insurance?

Short-term health insurance provides limited coverage as a temporary bridge while you wait to qualify for an ACA-compliant plan or employer-sponsored coverage. You'll be eligible for a special enrollment period if you lost your job or otherwise lost coverage. Other life events qualify you for special enrollment as well. However, if you missed the application window, short-term health insurance is better than forgoing coverage.

What Should I Look for in a Short-Term Health Insurance Plan?

When shopping for short-term health insurance, factors include maximum lifetime coverage limits, deductibles, coinsurance, state availability, and prescription coverage. But it’s also particularly important to review coverage and exclusions. Many medical procedures and conditions may be excluded from coverage—as in, your insurance company won’t pay anything. Or, specific procedures may be subject to different limits, which can come as a surprise. For example, the company may not pay more than $1,000 for an emergency room per day, even if it costs far more.

How Can I Buy Short-Term Health Insurance?

You can buy short-term health insurance from an agent or directly on an insurance company's website. Short-term coverage sometimes offers lower monthly premiums but may cost you more if you need emergency or chronic care, and your application could be rejected based on your medical history. Before you buy short-term health insurance, check if you qualify for a special enrollment period and any cost-sharing reductions available in the ACA Marketplace.

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Best Short-Term Health Insurance Providers

Lindsay Frankel

Updated January 22, 2024

Reviewed by

Anthony Battle

Fact checked by

Yarilet Perez

Short-term health or short-term medical insurance plans can fill a temporary gap in health insurance coverage. They can be a good fit for people who can’t get group health insurance or COBRA, or who can’t enroll in better coverage through an Affordable Care Act (ACA) plan because they missed open enrollment and aren’t eligible for special enrollment. The best short-term health insurance plans cover essential benefits at an affordable price.

It’s important to understand that short-term health insurance isn’t an adequate replacement for traditional major medical coverage. The plans are not required to cover the same essential health benefits required of ACA plans, deductibles are often very high, and pre-existing conditions are typically not covered.

For these reasons, short-term health coverage has been called “junk insurance” and is only available in around 38 states. The Biden administration has proposed limiting how long short-term plans can last to protect consumers from relying on them for more than a few months, because evidence shows they can lead to financial hardship.

With that said, there may be times when you need to use a short-term plan in a pinch. We researched 17 plans from three major health insurance companies and evaluated their maximum coverage benefits, length of coverage, costs, prescription drug coverage, and state availability.

Best Short-Term Health Insurance Providers

Best Overall: UnitedHealthcare Plus Elite
Best for Long Term: UnitedHealthcare Copay Select Max
Best for Generic Prescription Drug Coverage: Pivot Health Quantum PPO Copay
Lowest Deductible: Pivot Health Deluxe Plan
Widely Available: Everest Flex Term Health Insurance

Best Overall : UnitedHealthcare Plus Elite

8xbet1Liên kết đăng nhập — UnitedHealthcare

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Why We Chose It

The Plus Elite plan from UnitedHealthcare has the best average pricing among six-month plans when considering factors like premiums, deductibles, and out-of-pocket maximums. It also offers a $50 urgent care visit and $25 copays on some prescriptions.

Pros & Cons

Pros

$50 urgent care visit before deductible
Deductible options as low as $2,500
Some preventive care covered

Cons

Cap on prescription costs per term
No coverage for pre-existing conditions
Minimal preventive care coverage

Overview

UnitedHealthcare’s Plus Elite plan, underwritten by financially strong Golden Rule Insurance Company, offers the best pricing among six-month plans based on the average lowest premium, highest deductible, and a $2 million maximum coverage benefit. Plus Elite comes with some nice benefits, including one $50 urgent care visit per term, a large provider network that doesn’t require you to get a referral from a primary care physician, and the option to add $0 virtual care visits through Amwell for an additional premium. There’s no cost for covered healthcare services once you’ve met your deductible, and there’s a low-deductible option available for a high premium. Depending on your state, you can choose a term length of one to 12 months. However, there are limits and exclusions you should be aware of, including a $5,000 cap on prescriptions per term, and preventive care is limited—for example, immunizations aren’t covered care. It does not cover pre-existing conditions, which include pregnancy. Marketplace (ACA) plans provide better coverage and may be a better value. To qualify, you’ll also need to fork over an additional $10 monthly for a membership to the Federation of American Consumers and Travelers (FACT).

Best for Long Term : UnitedHealthcare Copay Select Max

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Why We Chose It

UnitedHealthcare’s TriTerm Copay Select Max plan offers three 12-month coverage terms with one application, and covers some services with a copay before you’ve met your deductible. However, most people should opt for a shorter term and apply for an ACA plan during the next open enrollment period.

Pros & Cons

Pros

Pre-existing conditions covered after 12 months
Preventive care of up to $200 covered after 6 months
$25 Tier 1 prescriptions
Five deductible options go as low as $2,500

Cons

30% coinsurance after deductible
Relatively expensive premiums

Overview

Most people won’t need a term longer than 12 months, but if you’re seeking a longer coverage period with one application, UnitedHealthcare’s TriTerm Copay Select Max plan is our top pick for its overall pricing and prescription drug coverage. Premiums are relatively high, but many healthcare services are covered before the deductible is met. For example, you can get a $75 urgent care visit, four $50 doctor’s office visits per term, and $25 prescription drugs. Pre-existing conditions are covered after 12 months, and you get $200 per term to spend on preventive care after six months. The preventive care covered is more comprehensive than many other plans, including immunizations and mammograms. You can choose from five deductibles between $2,500 and $12,500, and coverage tops out at $1 or $2 million. But while most fees are flat copays, you’ll pay a 30% coinsurance for emergency room and hospital stays after the deductible is met. This can be a significant amount. You also have to read the fine print to avoid unpleasant surprises. For example, if you’re not admitted but only seen in the emergency room, you’ll pay another $500 deductible per visit.

Best for Generic Prescription Drug Coverage : Pivot Health Quantum PPO Copay

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Why We Chose It

Pivot Health’s Quantum PPO Copay plan offers a $5 copay for generic prescriptions, the lowest of the providers we reviewed.

Pros & Cons

Pros

$5 generic drugs
Access to the Cigna PPO network
Preventive care coverage of up to $250 per term provided

Cons

Limited doctor’s office and urgent care visits not subject to deductible
Pre-authorization required for most procedures
Coverage max option of $500,000 may not be sufficient

Overview

Pivot Health offers the cheapest prescription drug copays of the providers we reviewed. The Quantum PPO Plan offers $5 generics, $30 preferred drugs, and $75 non-preferred drugs. The plan provides access to the Cigna PPO network with some coverage for out-of-network doctors. You can choose an in-network deductible as low as $2,500; after you reach that amount, the plan pays 80% of covered medical expenses. But to have 100% of covered expenses paid for, you must choose a $10,000 deductible. The covered medical procedures can top out at $500,000 or $1 million; $500,000 may not be enough if you’re in a serious accident. The plan covers primary care, specialist, and urgent care visits with a copay before meeting your deductible, but you’ll be limited to three visits across all categories. Not all plans offer preventive care, but Quantum PPO Copay does for one visit per period, for up to $250 in expenses.

Premiums are relatively high considering these limits. And you’ll be required to get pre-authorization for most procedures or face a $500 reduction in your benefits.

Lowest Deductible : Pivot Health Deluxe Plan

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Why We Chose It

Pivot Health’s Deluxe Plan offers deductible options as low as $1,000. However, your premiums will be costly with this option.

Pros & Cons

Pros

Low deductible and out-of-pocket maximum options
Annual preventive care covered up to $200
Free telemedicine visits

Cons

No pre-existing condition coverage
High premiums if you choose lowest deductible
Limited doctor’s office and urgent care visits

Overview

You can choose a deductible as low as $1,000 with Pivot Health’s Deluxe plan and see any provider you wish. After you meet your deductible, you’ll only pay 20% coinsurance until your out-of-pocket maximum is met, which can be as low as $4,000. The Deluxe plan also comes with generic medication costs of just $10. And you can get one preventive care visit of up to $200 covered per term. There’s also an emergency room copay, which is a nice feature, but if you’re admitted, your care costs will also be subject to your deductible and coinsurance. Doctor’s office and urgent care copays are also limited to three visits across categories before your deductible and coinsurance apply.

Widely Available : Everest Flex Term Health Insurance

Everest

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Why We Chose It

Everest’s 12-month Flex Term Health Insurance plan is widely available, offering coverage to residents of 25 states, and it comes with multiple deductible and coinsurance options.

Pros & Cons

Pros

Available in 25 states
$50 doctor’s office visit copay
Multiple coinsurance options
Cheap premiums

Cons

No pre-existing condition coverage
No prescription drug coverage
Caps on coverage for certain services

Overview

Flex Term Health Insurance is widely available and you can mix and match multiple deductibles, co-insurance percentages, out-of-pocket maximum, and coverage period maximum options. Adjustments will make your premiums higher or lower. However, coverage period maximums top out at $1.5 million, without a $2 million option available. The plans come with relatively cheap premiums but offer limited coverage. As an example, we collected a quote for a 6-month plan in Texas for a 30-year-old woman. Here is the breakdown:

Premium	Deductible	Max Benefit Coverage
$99	$10,000	$750,000

Although you’ll only pay $50 for each physician’s office visit, there’s no prescription drug coverage outside of medications during a hospitalization. You’ll also be required to pre-certify most procedures or incur a penalty. You can see any medical provider, since the plan is not confined to a network, but it’s financially wise to use the PHCS Practitioner Plus Ancillary Network so you won’t be charged the difference when services cost more than what your policy covers.

The Bottom Line

Before purchasing short-term health insurance, check to see if you’re eligible for a . Marketplace plans will provide better coverage for most people and may even cost less monthly. If you must choose a short-term health insurance plan, the best plan will depend on your expected healthcare needs and whether you take any medications. UnitedHealthcare’s Plus Elite plan offers the best overall pricing and great benefits, such as $50 urgent care visits and the option to add $0 virtual care. If you anticipate needing a longer term, the Copay Select Max plan from UnitedHealthcare may be your best bet. If you take medications, Pivot Health’s plans offer the lowest copays and low-deductible options. Everest offers an inexpensive and widely available plan, but it doesn’t cover prescriptions.

Compare the Best Short-Term Health Insurance Providers

Plan	Max Lifetime Coverage Limit	Max Coverage Length	Avg. Min. Premium Across 3 States (does not relate to max lifetime limit)
UnitedHealthcare Plus Elite	$2 million	12 Months	$163
UnitedHealthcare Copay Select Max	$2 million	36 months	$266
Pivot Health Quantum PPO Copay	$1 million	36 months	$244
Pivot Health Deluxe	$1 million	36 months	$259
Everest Flex Term	$1.5 million	12 months	$138

What Is Short-Term Health Insurance?

Short-term health insurance is a type of major medical insurance that provides coverage for a limited term. Unlike ACA plans offered on the Health Insurance Marketplace, short-term plans don’t cover pre-existing conditions and aren’t required to cover essential health benefits such as prescription drugs, mental healthcare, and preventive care. Because they’re not subject to ACA limits, short-term health insurance plans can result in high out-of-pocket costs.

For these reasons, short-term health insurance should only be used for temporary coverage until you’re eligible for employer-sponsored group health insurance or until open enrollment for an ACA plan. You should also check to see if you’re eligible for a special enrollment period, which would allow you to get an ACA plan right away. Short-term health insurance should be a last resort when other coverage options are not available. While it’s better than nothing, it can leave you vulnerable to unaffordable medical bills.

What Does Short-Term Health Insurance Exclude?

Short-term health plans can have many exclusions, including no coverage for pre-existing conditions. Short-term health plans do not have to meet the basic requirements that ACA plans do, and have significant risks of causing medical debt due to high deductibles and extensive exclusions that can lead to denials of coverage. Up to 71% of plans do not cover outpatient prescription drugs, and no short-term health plans cover maternity care.

State Rules About Health Insurance

Each state approaches short-term health insurance in a different way. Some states have banned the coverage or enacted so many regulations that no insurer is willing to offer a plan to state residents. For example, in Colorado, the initial contract is limited to six months and you can’t be enrolled for more than 12 months in an 18-month period. Insurers can’t reject applicants based on their medical history.

Other states have some limits on the coverage, while others have very few restrictions. These regulations and restrictions will determine which plans are available and which limitations are in place.

A September 2023 report from the Paragon Institute (a nonprofit policy research institute stating a focus on free-market solutions) categorized states by availability and regulatory environment.

State by State Limits on Short-Term Health Insurance
Restrictions	States
Short-term insurance banned or regulations are so strict it is not offered	California, Colorado, Connecticut, Hawaii, Maine, Massachusetts, Minnesota, New Jersey, New Mexico, New York, Rhode Island, Vermont, Washington D.C., Washington state
Some limitations on short-term health insurance	Delaware, Illinois, Maryland, Michigan, Nevada, New Hampshire, Oregon, Virginia
Fewest limitations on short-term health insurance	Alabama, Alaska, Arkansas, Arizona, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, West Virginia, Wisconsin, Wyoming

Frequently Asked Questions

How Does Short-Term Health Insurance Compare to COBRA?

A COBRA plan allows you to maintain the exact same coverage you had through your employer or previous group benefits. Any amount you’ve already paid toward your deductible can be helpful overall. However, you’ll likely pay more for the same coverage—your employer often helps pay your premium. Your former employer can charge up to 102% of the plan’s cost (2% is for administrative expenses).
Short-term medical plans may cost less (depending on your age and other factors) but also offer much less coverage, many exclusions based on the policy or your pre-existing conditions, and few of the essential benefits required by ACA plans.
When Might I Need Short-Term Health Insurance?

Short-term health insurance provides limited coverage as a temporary bridge while you wait to qualify for an ACA-compliant plan or employer-sponsored coverage. You'll be eligible for a special enrollment period if you lost your job or otherwise lost coverage. Other life events qualify you for special enrollment as well. However, if you missed the application window, short-term health insurance is better than forgoing coverage.
What Should I Look for in a Short-Term Health Insurance Plan?

When shopping for short-term health insurance, factors include maximum lifetime coverage limits, deductibles, coinsurance, state availability, and prescription coverage. But it’s also particularly important to review coverage and exclusions. Many medical procedures and conditions may be excluded from coverage—as in, your insurance company won’t pay anything. Or, specific procedures may be subject to different limits, which can come as a surprise. For example, the company may not pay more than $1,000 for an emergency room per day, even if it costs far more.
How Can I Buy Short-Term Health Insurance?

You can buy short-term health insurance from an agent or directly on an insurance company's website. Short-term coverage sometimes offers lower monthly premiums but may cost you more if you need emergency or chronic care, and your application could be rejected based on your medical history. Before you buy short-term health insurance, check if you qualify for a special enrollment period and any cost-sharing reductions available in the ACA Marketplace.

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