Short-term Health Insurance Options
What is a short-term plan?
If you are unable to afford an Affordable Care Act (ACA) plan or missed the open enrollment deadline, you should consider short-term health plans as an alternative among affordable healthcare options.
Short-term health plans can provide essential health insurance coverage if you have a gap in your existing coverage, offering protection at a relatively low premium. Most short-term plans are available within just a few days of applying and can offer terms that range from 30 days to just under 12 months.
It's important to note that short-term plans do not meet the requirements set by the Affordable Care Act (ACA) and typically do not fully cover most preventive care. However, they are accessible year-round with no waiting period, meaning you are not constrained by open enrollment windows or special enrollment periods.
Affordable Care Act (ACA) Federal Tax Penalty
In prior years, you may have faced a federal tax penalty for having short-term health plans since they do not provide the comprehensive health insurance coverage required by the Affordable Care Act. This requirement has changed as of January 1, 2019, but it’s important to note that some states may still impose penalties. For more information on affordable healthcare options and your individual circumstances, please consult your tax advisor.