Is Short Term Health Insurance Expensive
Jason Stolz CLTC, CRPC
Is short term health insurance expensive? Compared to major medical insurance, the answer is usually no. Short term health insurance provides temporary coverage at a fraction of the cost of traditional ACA-compliant plans. It’s a practical solution for individuals and families who are between jobs, waiting for group coverage to begin, or who missed open enrollment. These plans help you stay protected from unexpected medical bills without locking into long-term commitments or high monthly premiums.
At Diversified Insurance Brokers, we work with leading short term health insurance providers to help you compare plan designs, coverage levels, and rates that fit your needs. Short term policies can often be customized to include benefits like doctor visits, urgent care, prescription discounts, and hospitalization coverage—all without the heavy costs of comprehensive major medical insurance.
How Much Does Short Term Health Insurance Cost?
Short term health insurance costs vary depending on your age, state of residence, health status, and the level of coverage you choose. However, premiums are generally far lower than ACA marketplace plans. For healthy individuals, monthly premiums can start as low as $40 to $100 per month, compared to $400 or more for a major medical plan without subsidies.
Because short term coverage doesn’t include all of the government-mandated benefits (such as maternity care or mental health), carriers can price these plans more affordably. They are designed for temporary protection rather than long-term use, giving you flexibility without the financial burden of year-round coverage.
Why Short Term Health Insurance Costs Less
There are several reasons short term medical plans tend to cost less than ACA-compliant options:
- Limited coverage periods: Policies usually last from 30 days to 12 months, depending on your state.
- No community rating: Premiums are based on individual factors rather than being pooled across broad populations.
- Fewer mandated benefits: You can choose to exclude certain coverages you may not need, such as maternity or pediatric dental.
- Underwritten applications: Short term plans typically include health questions, allowing insurers to manage risk more efficiently.
This structure makes short term insurance more affordable for people in good health who simply need temporary coverage between longer-term plans.
Who Should Consider Short Term Health Insurance?
Short term medical coverage isn’t for everyone—but it can be a perfect fit in the following scenarios:
- You’re between jobs and waiting for new employer coverage to start.
- You missed the ACA open enrollment period and don’t qualify for a special enrollment window.
- You’re a recent college graduate entering the workforce without immediate access to group coverage.
- You’re waiting for Medicare eligibility and need protection during the gap.
- You want a lower-cost alternative while evaluating long-term options like major medical or health-sharing plans.
What Short Term Health Insurance Covers
While not as comprehensive as traditional health insurance, short term plans typically include the essentials needed for unexpected medical issues. Most offer:
- Emergency room visits
- Hospitalization and surgery
- Doctor and specialist visits
- Diagnostic tests and X-rays
- Prescription drug discounts (on select plans)
Depending on the insurer, you may also have access to telemedicine, preventive care options, and customizable deductible and copay levels. This flexibility allows you to strike a balance between coverage and cost that fits your personal situation.
Limitations to Be Aware Of
Before enrolling, it’s important to understand what short term health insurance does not cover. These policies typically exclude:
- Pre-existing medical conditions
- Preventive or wellness visits beyond basic screenings
- Maternity and newborn care
- Mental health and substance abuse treatment
- Prescription drug coverage (in many plans)
Because short term health plans are medically underwritten, applicants with significant health issues may be denied coverage or charged higher rates. However, for healthy individuals looking for immediate protection, the lower premiums make these plans extremely cost-effective.
Comparing Short Term vs. Major Medical Insurance
| Feature | Short Term Health Insurance | Major Medical Insurance |
|---|---|---|
| Average Monthly Cost | $40–$100 | $300–$600+ |
| Enrollment Period | Available year-round | Limited to open enrollment or special enrollment |
| Coverage Length | 1–12 months | 12 months (renewable) |
| Pre-existing Condition Coverage | Typically excluded | Always included |
| Ideal For | Temporary coverage or healthy individuals | Comprehensive long-term protection |
How to Lower Your Short Term Health Insurance Costs
- Choose a higher deductible to reduce monthly premiums.
- Select plans with limited outpatient benefits if you rarely see a doctor.
- Shop multiple carriers with an independent broker like Diversified Insurance Brokers to find the best rates.
- Pay annually instead of monthly if the carrier offers a discount for upfront payment.
Our team works with multiple short term health insurance providers, helping clients nationwide find coverage that balances affordability and protection. Whether you need a bridge plan for a few months or coverage while transitioning jobs, we’ll help you compare carriers and benefits side-by-side.
How to Apply
Applying for short term health insurance is quick and straightforward. You can complete an application online in minutes, often receiving an instant decision. Most plans begin the next day after approval, giving you immediate access to coverage when you need it most.
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FAQs: Short Term Health Insurance
How much does short term health insurance cost?
Costs vary by age, location, and benefits selected, but many healthy adults can find short term health coverage for under $100 per month during a coverage gap.
Is short term health insurance as good as major medical?
No. While it’s more affordable, short term health plans offer fewer benefits and fewer regulatory protections than standard major medical insurance.
Can I switch to major medical after short term health?
Yes, in many cases. But make sure you understand any pre existing condition exclusions or waiting periods that may apply later.
Does short term health insurance cover pre-existing conditions?
Typically it does not. Most short term plans exclude pre existing conditions or only cover them after a waiting period.
Who should consider short term health insurance?
People between jobs, early retirees waiting for Medicare, recent grads without employer coverage, or anyone needing a temporary coverage solution.
About the Author:
Jason Stolz, CLTC, CRPC, is a senior insurance and retirement professional with more than two decades of real-world experience helping individuals, families, and business owners protect their income, assets, and long-term financial stability. As a long-time partner of the nationally licensed independent agency Diversified Insurance Brokers, Jason provides trusted guidance across multiple specialties—including fixed and indexed annuities, long-term care planning, personal and business disability insurance, life insurance solutions, and short-term health coverage. Diversified Insurance Brokers maintains active contracts with over 100 highly rated insurance carriers, ensuring clients have access to a broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as VoyageATL, highlighting his commitment to financial clarity and client-focused planning. Drawing on deep product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers, compare strategies, and build retirement and protection plans that are both secure and cost-efficient.
