Short-term health plans: what they are, current rules and the risks
Short-term, limited-duration insurance is temporary coverage that doesn't have to follow ACA rules: it can exclude pre-existing conditions, skip benefits like maternity or mental health care, and cap what it pays. You can't use premium tax credits on it. A 2024 federal rule limited new policies to 3 months (4 months with renewals), but in August 2025 federal agencies said they won't prioritize enforcing that limit while they write a new rule, and states set their own rules, with some banning or restricting these plans.
Current federal rules (as of October 2026)
- 2024 final rule: for policies sold on or after September 1, 2024, short-term plans are limited to an initial term of no more than 3 months and a maximum of 4 months including renewals, and must display a consumer notice.
- August 7, 2025 statement: the Departments of Labor, HHS and the Treasury said that until new rulemaking is issued, they don't intend to prioritize enforcement of the 2024 definition (including the notice), and encouraged states to take a similar approach.
- New rulemaking: the agencies said they intend to undertake notice-and-comment rulemaking to consider amending the definition. Check the latest status before relying on any duration limit.
- State law still applies. States can set shorter limits or prohibit short-term plans entirely, so availability depends on where you live.
What short-term plans typically don't do
| Feature | ACA Marketplace plan | Short-term plan |
|---|---|---|
| Covers pre-existing conditions | Yes | Often excluded |
| Covers all 10 essential health benefits | Yes | Not required |
| Can deny you based on health | No | Yes (medical underwriting) |
| Annual or lifetime dollar limits | Not allowed on essential benefits | Allowed |
| Premium tax credits | If eligible | No |
| Counts for a CHOICE Arrangement / ICHRA | Yes | No |
When people consider them
Short-term coverage is sometimes used to bridge a brief gap, for example between jobs, when someone has missed Open Enrollment and has no Special Enrollment Period. Before you buy, check:
- Do you qualify for a Special Enrollment Period, Medicaid or CHIP instead?
- What's excluded: pre-existing conditions, maternity, mental health, prescriptions?
- Is there a maximum benefit, and what happens if you get seriously ill near the end of the term?
- Can you renew, and will a new illness be excluded on renewal?
Frequently asked questions
How long can a short-term health plan last?
Under the 2024 federal rule, new policies are limited to 3 months initially and 4 months total. But federal agencies said in August 2025 they won't prioritize enforcing that limit while they write a new rule, and states set their own limits or bans.
Do short-term plans cover pre-existing conditions?
Usually not. Short-term plans aren't required to follow ACA rules and commonly exclude pre-existing conditions.
Can I use a premium tax credit on a short-term plan?
No. Premium tax credits are only available for qualifying Marketplace plans.
Is a short-term plan the same as a Catastrophic plan?
No. Catastrophic plans are ACA Marketplace plans that cover essential health benefits and pre-existing conditions. Short-term plans don't have to.
Sources
- U.S. Departments of Labor, HHS and Treasury: Statement on short-term, limited-duration insurance (Aug. 7, 2025) (accessed October 28, 2026)
- HealthCare.gov: CHOICE Arrangements (formerly individual coverage HRAs) (accessed October 28, 2026)
- HealthCare.gov: Coverage for pre-existing conditions (accessed October 28, 2026)
- HealthCare.gov: Getting health coverage outside Open Enrollment (accessed October 28, 2026)