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How short-term plans differ from ACA plans
| ACA-compliant plan | Short-term plan | |
|---|---|---|
| Can deny you for health history | No | Yes |
| Pre-existing conditions | Covered | Usually excluded |
| Essential health benefits | Required | Not required; maternity, mental health and drugs often excluded |
| Preventive care at no cost | Required | Not required |
| Annual or lifetime benefit caps | Not allowed | Common |
| Subsidies | Available | Not available |
| When you can buy | Open enrollment or special enrollment | Any time |
Sources: HealthCare.gov; Bloomberg Tax.
Where the federal rules stand
- 2018 rule: allowed initial terms under 12 months and up to 36 months with renewals.
- 2024 rule: cut the initial term to three months and the maximum to four months, and required a notice explaining the plan isn’t comprehensive.
- August 2025: the Departments of Labor, Health and Human Services and Treasury said they would not prioritize enforcing the 2024 limits until a new rule is issued, and encouraged states to do the same.
- 2026: the agencies told a court they planned a new rule expanding the maximum length. As of September 2026, the four-month limit remained under the non-enforcement pause.
States can be stricter. Some ban short-term plans or limit them to shorter terms, so availability depends on where you live.
When a short-term plan might make sense
- You missed open enrollment, don’t qualify for a special enrollment period and need protection against a major accident until the next plan year.
- You’re healthy, between jobs, and new employer cover starts in a few weeks.
- You understand and accept that pre-existing conditions and many services won’t be covered.
Check these alternatives first
- Special enrollment: losing job-based cover, moving, marriage or a new child gives you 60 days to enroll in a Marketplace plan; see our Marketplace guide.
- COBRA: expensive, but full cover, and retroactive if you elect within 60 days; see our COBRA guide.
- Medicaid: you can apply any time of year; see Medicaid vs. Marketplace.
- A family member’s plan: losing cover lets you join a spouse’s or parent’s plan.
Red flags when buying
- Sales pitches that call a short-term or limited plan “Obamacare” or “major medical.”
- Pressure to buy on the first call or during open enrollment instead of looking at subsidized ACA plans.
- Vague answers on pre-existing conditions, benefit caps and prescription cover.
- Health questions you’re asked to skip or answer loosely, which can lead to claims being rescinded.
Ask for the full policy document, not just a brochure, and check the insurer is licensed with your state.
Frequently asked questions
How long can a short-term health plan last?
Under the 2024 federal rule, three months initially and four months in total, but enforcement has been paused since August 2025 and state rules vary.
Do short-term plans cover pre-existing conditions?
Usually not. They can deny applicants or exclude conditions you had before buying.
Are short-term plans cheaper than Marketplace plans?
Premiums are often lower, but they cover much less. With subsidies, a Marketplace Bronze plan may cost little or nothing for some people.
Can I buy short-term insurance any time?
Generally yes, where state law allows, because short-term plans aren’t limited to open enrollment.
Is short-term health insurance worth it?
Only as a brief bridge for healthy people with no ACA option. It’s risky if you develop a serious condition.
Sources
- Mitchell Williams – Short-term limited duration insurance rules
- U.S. Department of Labor – Statement on short-term plan enforcement (Aug 2025)
- Bloomberg Tax – Agencies target summer 2026 for short-term plans rule
- HealthCare.gov – Pre-existing conditions
- BenefitChamps – What changed for 2027 open enrollment (Sept 2026)
- Healthcare Insider – Marketplace deadlines for 2027 coverage (Sept 2026)
Insurance prices, discounts and rules change often and vary by state. Figures were checked in October 2026; confirm details with the insurer or your state insurance department.