Short-term health insurance
In the United States, Short term health insurance refers to health insurance plans with a limited duration, typically several months.[1] These plans are geared toward people who need temporary medical insurance to bridge the gap between longer term plans. For instance, people who are switching employers, starting graduate school, or young adults who have become ineligible for coverage under their parents' plans and are searching for their own insurance might use a short term insurance plan until obtaining a more permanent solution.[2]
Short term health insurance plans are typically less expensive than traditional plans, but do not cover pre-existing conditions. This can cause problems for people who acquire a longer term illness, since the short term plan is completely terminated at the end of the coverage period.[3] Short term plans are also not considered "adequate coverage" under the Affordable Care Act so customers would also be subject to the tax penalties of being uninsured.[4]