IMPORTANT NOTICE ABOUT SHORT-TERM PLANS:
Short-term health insurance plans are not qualified health plans
under the Affordable Care Act (ACA or "Obamacare") and do not meet the coverage and benefit requirements of the
ACA. You cannot receive a subsidy (premium tax credit and/or cost-sharing reduction) under the ACA in connection
with your purchase of short-term health insurance and may still owe the tax penalty (the individual shared
responsibility payment) under the ACA. Some people may qualify for exemptions from the ACA tax penalty. Further
information about the ACA and its implications can be found in our
Affordable Care Act Resource Center.
Short-term health insurance plans are generally less expensive than qualified health plans under the ACA (also
called major medical health insurance), but do not offer the same level of coverage. Short-term health insurance
plans are intended for people who do not want or cannot afford major medical insurance or who want a temporary
form of limited coverage before they obtain major medical health insurance. Among other limitations and
exclusions, short term health insurance plans generally do not cover pre-existing conditions (health and other
conditions that exist at the time of application) or the minimum essential coverage of the ACA (benefits such as
mental healthcare, pregnancy and childbirth, preventive care, etc.).
Short-term health insurance plans are limited in duration and you will stop receiving benefits when the plan
Plan duration and whether you can renew or buy a new plan after plan expiration depend on the plan you choose
and the laws in your state. After a short-term plan expires (in some cases, in only 3 months), you must reapply
to receive further benefits. If you are accepted for an additional term under a short-term health insurance
plan, the plan's deductible and other amounts reset so that amounts paid (or the satisfaction of conditions)
under the initial plan are ignored. Similarly, whether you have pre-existing conditions will generally be
determined anew as of your approval under the new application. Insurance companies and state laws limit the
number of times a short-term insurance policy may be renewed and may restrict your ability to apply for more
than one consecutive short-term health insurance plan. Please review the plan details and policy terms for the
maximum coverage period allowed by the plan you select.
Purchasing a short-term insurance plan will make you ineligible for any guaranteed-issue individual health plans
commonly referred to as HIPAA plans. Please consult your benefits advisor to discuss your rights under the
Health Insurance Portability and Accountability Act (HIPAA) and other rights under state law.