Short-term medical insurance -- also known as STM, short-term health insurance, or temporary insurance -- is a health insurance plan that you can purchase for as little as 30 days or up to 364 days (depending on your state) to fill gaps in insurance coverage.
These plans use the same insurance terms you may already be familiar with: deductible, coinsurance, and copay. But short-term health insurance plans do not cover all of the same benefits that an Affordable Care Act (ACA or Obamacare) plan would, like pre-existing conditions or maternity care. That’s why short-term insurance premiums tend to be lower in cost.
Who is short-term medical insurance good for?
Short-term medical insurance is a temporary solution that makes sense during many life scenarios including:
- Losing a job
- Second, short term health insurance plans can be obtained any time of year and are not limited to the Open Enrollment Period. You can apply anytime you want!
- Facing a waiting period with a new employer
- Aging off of parents’ health insurance plan at 26 years old
- Early retirees who don’t yet qualify for Medicare
- College students who need coverage during the school year, or don’t yet have a job
- People who don’t qualify for an ACA Special Enrollment period