When you’re between jobs, waiting for employer coverage to begin, or simply need temporary health protection, short-term health insurance can be a quick and flexible solution. Though not a long-term substitute for major medical insurance, short-term plans offer basic protection during gaps in coverage.
But are they the right choice for you in 2025? This article explores the pros and cons of short-term health insurance and highlights the top providers worth considering this year.
What is Short-Term Health Insurance?
Short-term health insurance is designed to provide temporary coverage for medical expenses during unexpected or transitional periods. These plans typically last from one month to up to 12 months, depending on the state regulations, with some states allowing renewals for up to 36 months.
They’re not governed by the Affordable Care Act (ACA), so they’re not required to include essential health benefits like maternity care, mental health services, or prescription drugs.
Pros of Short-Term Health Insurance
✅ 1. Lower Monthly Premiums
Short-term plans usually cost significantly less than ACA-compliant plans. If you’re healthy and don’t need frequent care, this can be a major financial relief.
✅ 2. Immediate Coverage
Many plans start within 24 hours of approval, making them ideal in urgent situations, such as job loss or a move.
✅ 3. Flexible Coverage Periods
You can choose how long your coverage lasts—from 30 days to several months—depending on your needs.
✅ 4. Customizable Plans
Insurers often let you select specific coverage options like hospitalization, emergency care, and doctor visits, helping tailor a plan to your budget.
Cons of Short-Term Health Insurance
❌ 1. Limited Coverage
These plans typically exclude essential health benefits, including maternity care, mental health treatment, and preventive services. Many don’t cover pre-existing conditions either.
❌ 2. No ACA Protections
Because they’re not ACA-compliant, short-term plans can deny coverage based on your health history and may not renew if your condition changes.
❌ 3. Higher Out-of-Pocket Costs
Short-term plans often come with high deductibles and limited benefits, which means you could pay more out-of-pocket during a medical event.
❌ 4. No Subsidies
You won’t be eligible for premium subsidies (tax credits) like you would with an ACA plan, even if you have a low income.
Best Use Cases for Short-Term Health Insurance
Short-term health plans may be suitable if:
- You’re between jobs or recently laid off
- You missed Open Enrollment and don’t qualify for Special Enrollment
- You’re waiting for other coverage to start (e.g., new job or Medicare)
- You need temporary coverage for travel within the U.S.
Note: It’s not recommended as a long-term substitute for comprehensive insurance, especially for those with chronic conditions or ongoing care needs.
Top Short-Term Health Insurance Providers in 2025
Here are the best short-term health insurance companies to consider this year, based on coverage options, reputation, and customer satisfaction:
1. UnitedHealthcare
- Highlights: Broad coverage options, large provider network, quick approval.
- Pros: Customizable plans, telehealth included.
- Cons: Some limitations on coverage for certain medical services.
2. Pivot Health
- Highlights: Flexible durations and add-on benefits like prescription discounts.
- Pros: Easy online enrollment, generous doctor visit coverage.
- Cons: May not cover specialist visits or brand-name prescriptions.
3. Everest Reinsurance
- Highlights: Strong value and affordability for healthy individuals.
- Pros: Competitive pricing, decent emergency coverage.
- Cons: Limited add-ons and fewer plan options.
4. National General (Allstate Health Solutions)
- Highlights: Backed by Allstate, offers plans with extras like dental and vision.
- Pros: Robust customization, wellness benefits available.
- Cons: Higher premiums than other short-term options.
5. IHC Group
- Highlights: Offers bundled plans with short-term, dental, and vision.
- Pros: Nationwide availability, includes telemedicine.
- Cons: Mixed customer service reviews.
Final Thoughts
Short-term health insurance can be a lifesaver during unexpected gaps in coverage. It’s affordable, flexible, and fast—but it’s not a comprehensive solution. If you’re young, healthy, and just need to bridge a short gap, it might be ideal. However, for anyone with ongoing medical needs or pre-existing conditions, a traditional ACA-compliant plan is a safer choice.
Before enrolling, always read the fine print, compare providers, and understand what’s excluded. With the right plan and provider, short-term health insurance can offer the temporary peace of mind you need—until your next long-term solution kicks in.