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HomeHealth & Fitness3 Best Short-Term Health Insurance Companies- Benefits, Disadvantages, And More

3 Best Short-Term Health Insurance Companies- Benefits, Disadvantages, And More

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Short-term health insurance can be an economical choice for all those seeking health coverage during life transitions. Short-term health insurance provides temporary coverage while your permanent coverage is lapsed, protecting you from costly medical bills caused by sudden physical ailments or emergencies.

What Is Short Term Health Insurance?

Short-term insurance is a kind of health care plan that can provide you with provisional medical coverage if you are in between health plans, outside of enrollment periods, and require coverage in the event of an emergency. To make the most of a short-term health plan, you must first understand how it works, how much it costs, and what it covers.

In certain circumstances, short-term health insurance may provide you with provisional medical coverage. Many of the features of these momentary health insurance plans differ significantly from those of traditional health insurance plans.

What  Does Short Term Health Insurance Cover?

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Short-term health insurance coverage differs greatly based on the plan and the insurance company from which you purchase it. These plans are exempt from the requirements of the Affordable Care Act (ACA). Minimum essential coverage is required of ACA plans. Short-term health plans are not obligated to adhere to the same requirements.

Short-term medical insurance typically includes some level of coverage for preventative medicine, doctor appointments, urgent care, and emergency care. 

Prescriptions may also be covered. Some plans also provide cost reductions for seeing in-network providers. Before purchasing any plan, read the “exclusions and limitations” section. This will tell you what is and isn’t covered by a specific plan.

The Advantages And Disadvantages Of Short Term Health Insurance

If you’re debating whether or not a short-term health insurance policy is right for you, here are some advantages and disadvantages for you:


  • Designed to cover short-term coverage gaps if needed. 
  • You can nullify coverage at any time without penalty. 
  • If necessary, you can usually pick a good policy that protects you for up to a year.
  • Depending on the insurance company, a variety of plan designs are available.


  • Considerably higher deductibles than standard health insurance policies together with potential additional unanticipated expenses
  • Pre-existing conditions are not covered, and the majority of services are only partially covered.
  • For coverage to be granted, a medical questionnaire could be needed.
  • Plans with relatively minimal government regulation and a wide range of covered services and fees because coverage is neither required nor standard

Best Short Term Health Insurance Companies

1. COBRA Continuation Health Coverage for Workers

The Consolidated Omnibus Budget Reconciliation Act (COBRA), a federal law and not an insurance provider in and of itself, enables you to continue on your employer’s group health insurance plan even after a change in employment status, making it one of the best options for short-term health insurance. Depending on your situation, you can extend your COBRA cover for 18 to 36 months.

However, since you are now responsible for paying the entire premium for your health insurance plan, along with the part that your company previously covered, COBRA can be costly. 

However, because you retain access to the same doctors, copays, and prescription coverage that you had with your employer’s health insurance plan, its coverage and availability options can enable a seamless transition in your health care.

You can also stop COBRA at any time, and coverage is retroactive, so it starts protecting you from the moment your old insurance coverage expires.

2. Pivot Health

Pivot Health is a fantastic choice to consider for consumers searching for short-term health insurance at a more reasonable price because its rates and co-pays are frequently lower than those of COBRA. 

Deductibles range from $1,000 to $10,000. It offers 20% to 30% coinsurance on all plans, a separate $500 prescription drug deductible (for some plans), a $30 copay for basic care, and a $60 copay for urgent care and specialists (on certain plans).

Additionally, depending on your state, you can enroll in Pivot insurance for a period of time ranging from 30 days to almost three years with certain plans having no network limits. This service also provides discounts of up to 30% on eye exams, glasses, and contact lenses in addition to up to 70% off prescription medicines.

All states except Arkansas, Colorado, Massachusetts, Maryland, Maine, New Hampshire, New Mexico, New York, Utah, and Washington offer Pivot Health plans.

3. UnitedHealthcare

UnitedHealthcare, one of the most well-known health insurance companies in the U.S., offers a selection of short-term health insurance plans with various deductibles and coinsurance rates that are covered by Golden Rule Insurance Company. 

Users also have access to their extensive network of 6.500 hospitals, 1.4 million physicians, and other medical facilities.

Depending on your state, the duration of protection for short-term health insurance policies runs from one month to 12 months, and you are free to cancel your coverage at any time. Plans may also offer dental insurance.

How Do You Qualify For Short Term Insurance?

Norris claims that “very limited medical underwriting” is applied to the bulk of short-term health insurance plans during the application process. They normally simply inquire about major medical issues with a few yes/no questions and will cover anyone who qualifies.

Short-term plans usually employ “post-claims underwriting,” which indicates that the insurer will regularly review your records when you submit a new claim to ensure it isn’t connected to a previous one preexisting condition, continues Norris. If so, she explains, “they have the option to reject the claim or even terminate the coverage.”

Frequently Asked Questions

1. How much does a short term insurance cost?

Ans. Plans for temporary health insurance are often far less expensive than major medical insurance. In contrast to major medical coverage, which costs at least $225 per month, short-term policies start as low as $55 per month*.

2. Is short term insurance okay to pick?

Ans. For those who are in good health and rarely need medical care or prescription medications, short-term health insurance may be a smart choice. For those who desire a health plan in case of an emergency or require rapid coverage, short-term health insurance is frequently worthwhile.

3. How do you buy short term insurance?

Ans. You can look for a private insurance provider that sells short-term medical insurance plans and purchase one. Before you buy or enroll, be sure to read all the fine print. The cost and coverage of these policies might vary substantially.

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