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If you are between your health care plans right now, you may feel stressed. There is no need to fret, though! You can still have health insurance in case something happens before your new health insurance starts.

Thankfully there is coverage you can have when you’re between insurance. Keep on reading if you have ever asked yourself, “What is short term health insurance?”

How Does it Work?

Short term health coverage acts as a bridge. It’s just enough to get you by until your new plan starts.

Usually, short term coverage should only be used in a 12 month period. If you need coverage for longer, then you should make sure to get your coverage during open enrollment.

It’s important to know that these plans are not regulated under Obamacare ( Affordable Care Act). These plans are not under the same rules and regulations as other insurance plans, so you most likely won’t actually save money having this plan.

You will still have coverage for your doctor visits and preventative care, just be ready to pay more than you would your plan that is under Obamacare.


Short term healthcare plans do not meet the minimum requirements that would consider them eligible to be under the Affordable Care Act, so you won’t receive a tax penalty for having this insurance.

You will have to cover all out of pocket costs until your deductible is met, which is different from your regular health insurance, where at least some part of your cost is covered. 

It is also important to know you will not receive any type of subsidies, such as a cost-share reduction or tax credits that would assist you with premium costs.

You should still seek a tax advisor in case there is any type of exemptions you may qualify for.

How to Save Money

Although this seems like the more expensive approach, there are ways you can save money. 

You can get healthcare quotes from different insurance companies and select what type of benefits you want from your coverage. If you choose a plan with fewer benefits, you can reduce your costs. You should sit down and write out what you are looking for with this plan. 

You can choose if you only need primary care visits or just a prescription plan.

What is Short Term Health Insurance?

Now that you have answered, “What is short term health insurance?” Sit down with your family and write out what is only needed. Although it may seem like a more costly option, you will benefit from having any coverage.

Make sure to look at all the options offered by a short term plan and only pick what you need out of this insurance.

Remember this type of insurance is to get you by until you have new coverage. Make sure to check out our other blog posts to help you become successful in life.