Short-Term Health Insurance (2026)
What STLDI covers, what it doesn't, and the narrow situations where it makes sense.
Short-term health insurance (officially STLDI: Short-Term, Limited-Duration Insurance) is designed to fill gaps — between jobs, waiting for Medicare, missed Open Enrollment. It's cheaper than ACA plans, but also dramatically less comprehensive. Under federal rules updated in 2024, STLDI is limited to 3 months + 1 renewal (4 months total) at the federal level, though some states allow longer terms under their own laws. Below we explain what short-term plans do and don't cover, who they suit, and why you should usually choose ACA Marketplace instead.
What short-term plans typically include
- Inpatient hospital stays (usually with per-day or per-admission caps)
- Emergency room
- Surgery
- Some outpatient services
- Basic ambulance
What short-term plans typically exclude
- Pre-existing conditions (broadly defined — any symptom or treatment in 5 years)
- Maternity and newborn care
- Mental health and substance use
- Preventive care (or very limited)
- Prescription drugs (or very limited)
- ACA's 10 Essential Health Benefits as a whole package
- Annual and lifetime benefit maximums are permitted (often $1M lifetime, far lower than ACA plans)
Who short-term insurance actually suits
- You're between jobs and start new employer coverage in 1–2 months.
- You just turned 26 and aged off parent's plan; Marketplace plan starts in a few weeks.
- You moved states mid-year and new state exchange isn't open yet.
- You're waiting for Medicare to start and don't qualify for COBRA or ACA.
- You are healthy and willing to take the catastrophic-only risk for a true short window.
When to pick ACA Marketplace instead
- You qualify for subsidies (most households with income under 400% FPL do, especially through 2025).
- You have any chronic condition, mental health care need, or ongoing prescription.
- You'll need coverage for 6+ months.
- You might need maternity or mental health coverage.
- You want protection against actual catastrophic illness — ACA plans cap out-of-pocket at $9,450 (2026); STLDI can cap lifetime benefits at $1M or less.
Short-term insurance questions
Short-Term, Limited-Duration Insurance (STLDI) covers you for 1–12 months (with one renewal, up to 36 months in some states). It's designed for temporary gaps — between jobs, waiting for Medicare, missed Open Enrollment. Unlike ACA Marketplace plans, STLDI plans are NOT required to cover Essential Health Benefits, do NOT have to accept pre-existing conditions, and do NOT count as minimum essential coverage in states with individual mandates.
Typical premium: $100–$300/month — often less than a pre-subsidy ACA Silver plan, but this is misleading because of what isn't covered. Costs vary by age, state, deductible and duration. A healthy 30-year-old might find a 3-month plan for $80/mo; a 50-year-old for $200/mo.
Varies widely by plan. Typically covers: inpatient hospital, emergency room, surgery, some preventive care. Usually doesn't cover: pre-existing conditions (broad definitions), maternity/newborn care, mental health, substance abuse, prescription drugs (sometimes limited), preventive care mandates from the ACA. Read every plan's exclusions list in full.
Three narrow situations: (1) bridging a known short gap (new job starts next month, waiting for ACA enrollment start date, waiting for Medicare), (2) healthy people with no chronic conditions who want catastrophic-only coverage, (3) people who missed ACA Open Enrollment AND don't qualify for a Special Enrollment Period. Not a long-term alternative to real health insurance.
At the federal level, loosely. STLDI plans are exempt from ACA requirements. States can add their own rules: California and New York effectively banned STLDI; New Mexico limits to 3 months; Colorado limits to 6 months. Some states allow renewable STLDI up to 36 months, which is essentially a long-term plan without ACA protections.
Technically no — they can't rescind mid-term except for fraud or non-payment. But many plans have 'post-claim underwriting' where they investigate claims and deny them based on alleged pre-existing conditions the applicant didn't disclose, even if the condition was unknown. This is the #1 complaint against STLDI at state insurance departments.
Rarely. COBRA continues your exact employer plan but at 102% of the full premium (employer no longer subsidizing). Typical COBRA cost: $500–$2,500/month. For a real replacement, ACA Marketplace with a subsidy usually beats both COBRA and STLDI. Use STLDI only if the gap is genuinely short and you can't qualify for Marketplace for some reason.
Catastrophic plans are real ACA plans for people under 30 or with hardship exemptions. They cover all Essential Health Benefits but have very high deductibles (~$9,450 in 2026) and focus on worst-case financial protection. Short-term plans are NOT ACA-compliant and can exclude most of what matters. Catastrophic > short-term if you qualify.
You shouldn't need to. If you have ACA coverage, it already covers more than any short-term plan would. The one exception: a foreign visitor or US citizen living abroad might combine a short-term travel-medical plan with a domestic plan for different purposes.
Regulators in states like California, New York, New Jersey, Washington, Illinois, Colorado and New Mexico have tightened rules because short-term plans were being sold as if they were comprehensive insurance. State Departments of Insurance documented cases of denied claims for treatments people thought were covered, post-claim rescissions, and marketing that confused consumers about ACA coverage. Federal rules under the Biden administration (2024) restricted federally-allowed STLDI to 3 months + 1 month renewal (4 months max).