Close Menu
  • Home
  • Finance News
  • Personal Finance
  • Investing
  • Cards
    • Credit Cards
    • Debit
  • Insurance
  • Loans
  • Mortgage
  • More
    • Save Money
    • Banking
    • Taxes
    • Crime
What's Hot

Cheaper HELOC Rates, Cash Needs Might Finally Lead to a Home Equity Lending Boom

June 3, 2025

Trump pauses Social Security benefit cuts over defaulted student loans

June 3, 2025

Why smaller bank CEOs got bigger pay hikes in 2024

June 3, 2025
Facebook X (Twitter) Instagram
Facebook X (Twitter) Instagram
Smart SpendingSmart Spending
Subscribe
  • Home
  • Finance News
  • Personal Finance
  • Investing
  • Cards
    • Credit Cards
    • Debit
  • Insurance
  • Loans
  • Mortgage
  • More
    • Save Money
    • Banking
    • Taxes
    • Crime
Smart SpendingSmart Spending
Home»Personal Finance»What Is Short-Term Health Insurance?
Personal Finance

What Is Short-Term Health Insurance?

February 25, 2025No Comments4 Mins Read
Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
What Is Short-Term Health Insurance?
Share
Facebook Twitter LinkedIn Pinterest Email

Short-term health insurance closes short gaps in coverage that happen when a person’s current health plan ends and their new plan hasn’t started. It’s also known as short-term, limited-duration insurance, or STLDI.

STLDI previously had a contract term of less than 12 months with a maximum coverage period of 36 months (including extensions). But under the latest federal law, these policies can now have a term of no longer than three months — with a possible one-month extension.

Short-term health insurance isn’t considered individual health insurance, so it doesn’t typically have federal protections and requirements for consumers. Therefore, this type of coverage isn’t considered a substitute for comprehensive health insurance, and it isn’t legal or available in all states.

How does short-term health insurance work?

Short-term health insurance offers certain benefits, however, it doesn’t meet the federal criteria for “minimum essential coverage.” Individual plans may or may not cover certain health or preventative services.

Underwriting

STLDI plans typically go through a medical underwriter to determine eligibility, and policies may have exclusions for pre-existing conditions (including pregnancy). You may even be turned down altogether because of your health.

When you submit a claim, underwriters can investigate to see if your condition existed prior to purchasing the policy, and if they find that it did — depending on your state — your claim may be denied even if your condition was never diagnosed before you bought the policy.

Coverage

Coverage for doctor visits may be severely limited to just a few visits. And certain types of medical expenses such as mental health services, maternity care or substance abuse care may not be covered at all.

See also  What to Do When You Can’t Pay Your Health Insurance Deductible

Prescription drug coverage may also be limited or not included in the policy. Some policies offer a discount card rather than covering prescriptions, so you’d be responsible for paying the discounted price out of pocket.

Out-of-pocket costs

While the majority of STLDI policies offer an out-of-pocket expense limit, that limit doesn’t always include what you’ve paid in copays or deductibles. And these policies tend to have very high deductibles.

Additionally, short-term health insurance policies can contain annual or lifetime payout limits on important health benefits, so if you have a severe illness or accident, your expenses may not be covered.

What does short-term health insurance cover?

Short-term health insurance doesn’t have to meet federal standards for health coverage, so policies may differ substantially in what they cover.

Short-term health insurance generally provides limited coverage for:

Short-term health insurance generally doesn’t cover:

  • Substance abuse treatment.

Who offers short-term health insurance?

Short-term health insurance can only be purchased through private insurers, and only in certain states where it can legally be sold. Since these policies aren’t Affordable Care Act (ACA)-compliant, they can’t be purchased through the health insurance marketplace.

What are alternatives to short-term health insurance?

Marketplace health insurance

If you’re experiencing a loss of coverage, even if only for a short period, this may be considered a qualifying life event under the ACA, which could make you eligible for a special enrollment period. You may be able to enroll in a marketplace plan that offers more comprehensive coverage and protection. With available subsidies and tax credits, you could qualify for marketplace coverage with a low premium — a much lower cost than short-term health insurance. If you later get health coverage through a new job or a family member, you can easily cancel your marketplace plan.

COBRA health insurance

If you’re looking for short-term health insurance because you lost your job, you’re allowed to keep the insurance you had with your employer under the Consolidated Omnibus Budget Reconciliation Act (COBRA). This coverage is available for 18 to 36 months, but you have to pay the full premium amount.

Source link

See also  6 Ways to Make Optimal Use of Your Tax Refund
health Insurance shortterm
Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
Previous Article5 things to know before opening a CD
Next Article Which cards still offer a 21-month intro APR?

Related Posts

Biz Insurance – SS

June 2, 2025

How to Borrow Money Wisely: Understanding Your Options

June 2, 2025

Discover’s 5% Bonus Categories for Q3 2025: Gas, Transit, Utilities

June 1, 2025
Add A Comment
Leave A Reply Cancel Reply

Top Posts

KeyBank partners with Treasury Prime for embedded banking

February 27, 2025

Austrian public prosecutors accuse René Benko of embezzlement tens of millions

February 9, 2025

Google acquires Wiz for $32B to make cloud security ‘more accessible’

March 19, 2025
Ads Banner

Subscribe to Updates

Subscribe to Get the Latest Financial Tips and Insights Delivered to Your Inbox!

Stay informed with our finance blog! Get expert insights, money management tips, investment strategies, and the latest financial news to help you make smart financial decisions.

We're social. Connect with us:

Facebook X (Twitter) Instagram YouTube
Top Insights

Cheaper HELOC Rates, Cash Needs Might Finally Lead to a Home Equity Lending Boom

June 3, 2025

Trump pauses Social Security benefit cuts over defaulted student loans

June 3, 2025

Why smaller bank CEOs got bigger pay hikes in 2024

June 3, 2025
Get Informed

Subscribe to Updates

Subscribe to Get the Latest Financial Tips and Insights Delivered to Your Inbox!

© 2025 Smartspending.ai - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.