Short-term health insurance plans may be an option for certain people. The prices are often a fraction of full insurance plans. These have not been very popular because low-income patients often quality for charity care at their local hospital or receive ACA subsidies instead.
These plans can be useful for higher income individuals who are healthy and need some kind of catastrophic protection. This is important because there are often no protection for middle to higher income individuals who have no health insurance and are not eligible for financial assistance programs. But there are important limitations:
- There may be waiting periods for non-emergency care such as cancer
- You may be denied coverage
- There may be no coverage for a pre-existing health condition even if you are approved
- What the plan covers varies widely between insurance companies and plans. Some do not cover prescription drugs, mental health, or care related to pregnancy or childbirth.
Coverage can be renewed yearly up to three years in some states and you may enroll at any time. This flexibility can be good for independent workers or those taking a break from their jobs and who do not want to pay for COBRA coverage. Monthly prices for a healthy 30 year-old in North Carolina can start at $60, with a $15,000 deductible. Starting prices for the same individual on the ACA marketplace can be around $250.
