Guide to Short-Term Health Insurance Cost

*Updated November 14th, 2025

Are you experiencing a gap in your health insurance coverage? Whether you’re between jobs, waiting for new benefits to start, or simply need temporary coverage, short term health insurance can serve as a quick health insurance option. A short-term health insurance plan (sometimes called a short term limited duration health plan) offers fast enrollment and flexible terms, but it comes with important limitations. Before you commit, it’s crucial to understand the health insurance cost, what these plans cover, and whether this type of health plan is the right fit for you.

You might be wondering: How much will this really cost? Will I get the health benefits I need? This guide explains how short-term health insurance costs are determined, how short-term health insurance coverage works, and how to compare the best short-term health insurance companies so you can confidently choose the right health insurance plan.

What Determines the Cost of Short-Term Health Insurance?

The cost of short-term health insurance varies significantly based on your personal needs and the type of short-term plan you choose. While a short term health insurance plan offers temporary health protection, pricing depends on the level of health insurance coverage, duration, and insurer guidelines.

Below are the primary factors influencing how much you’ll pay for a short-term health insurance plan.

1. Coverage Level and Benefits

A major driver of health insurance cost is the level of benefits included in the short-term health plan. Unlike an ACA health plan, short-term plans don’t need to cover essential health benefits under the Affordable Care Act.

Basic short-term insurance plans:

• Cover major medical events

• Often exclude maternity care, mental health services, and preventive care

• Lower monthly premiums

Comprehensive short-term medical plans:

• Include limited doctor visits

• May offer discounted prescriptions

• Higher premiums due to expanded health coverage

Your plan may also exclude preexisting health conditions like diabetes, which impacts cost and eligibility.

2. Deductibles and Out-of-Pocket Costs

The deductible you select significantly affects the cost of short term health insurance. Higher deductibles mean lower premiums but larger upfront expenses when seeking care.

Short-term plans don’t usually cap out-of-pocket spending the way major medical ACA plans do.

3. Age and Health Condition

Short-term insurance premiums depend heavily on your age and health.

• Younger adults pay the least

• Adults 50+ pay significantly more

• Plans are underwritten, so insurers can deny applicants due to preexisting health conditions

4. Location and State Regulations

Short-term health insurance in California, New York, New Jersey, and several other states is prohibited. Other states heavily regulate the sale of short-term health insurance, limiting contract length or renewals.

State departments of insurance control which insurance companies may offer short-term health insurance.

5. Insurance Provider and Plan Selection

Costs differ across health insurance companies and health insurers. The best short-term health insurance companies offer multiple levels of coverage, while others provide limited options.

Common insurers include:

• UnitedHealthcare (underwritten by Golden Rule Insurance Company)

• National General

• Pivot Health

Plans offer different deductibles, coverage limits, and exclusions.

6. Length of Coverage

Short-term plans typically last:

• 30–90 days

• Up to 12 months in certain states

• Up to 36 months with renewals (only where allowed)

Longer terms result in higher overall health insurance cost but more secure temporary health insurance.

7. Riders and Optional Add-Ons

Optional features increase cost:

• Prescription benefits

• Accident insurance

• Telemedicine services

• Additional outpatient visits

Average Cost of Short-Term Health Insurance

The average short-term health insurance cost ranges from $100–$300 per month.

Cost by Age

Cost by Plan Type

Short-term plans are cheaper than ACA health insurance marketplace plans, but lack key protections.

Additional Costs to Consider

Even the best short-term health insurance plan has added expenses:

• High deductibles & coinsurance

• Copays for doctor visits

• Prescription drug costs (often not covered)

• Limited or no coverage for mental health and substance use treatment

• Exclusions for preexisting conditions

• Out-of-network penalties

• Renewal restrictions

Ways to Lower Short-Term Insurance Costs

You can reduce costs by:

• Selecting a higher deductible

• Comparing multiple insurance companies

• Avoiding unnecessary riders

• Choosing basic temporary health insurance if you only need emergency coverage

• Using in-network providers

• Maintaining a healthy lifestyle

Is Short-Term Health Insurance Cost-Effective?

Whether short term health insurance is cost-effective depends on your needs.

A short-term plan may be a good fit if:

• You want affordable health insurance during temporary coverage gaps

• You are healthy with no routine medical needs

• You need a fast-starting health insurance plan

• You cannot afford ACA premiums and don’t qualify for subsidies

• You don’t need mental health services, maternity care, or preventive benefits

A short-term plan may not be ideal if:

• You have chronic or preexisting health conditions

• You need prescription coverage

• You want dependable long-term health coverage

• You qualify for Medicaid, ACA subsidies, or employer coverage

How to Enroll in Short-Term Health Insurance

If you decide to buy a short-term health insurance plan, here’s how to get started.

1. Compare Plans and Providers

Review offerings from multiple health insurance companies. Use online tools to find the best short-term health insurance options.

2. Understand the Policy Terms

Check the exclusions. Many insurance plans don’t cover:

• Mental health and substance use treatment

• Preventive care

• Maternity care

• Preexisting health conditions

3. Check Your State’s Regulations

Some states ban or limit the sale of short-term health insurance.

4. Consider Alternatives

If short-term insurance doesn’t meet your needs, consider:

• ACA marketplace plan

• COBRA

• Medicaid

• Catastrophic plan

• Employer coverage

5. Apply and Enroll

Most short-term insurance plans offer immediate approval and quick coverage. Some plans start the day after purchase.

Be honest on your application—short-term plans don’t cover undisclosed preexisting conditions.

Conclusion

Short term health insurance can be a helpful temporary coverage option when you’re between major medical plans. While it’s cheaper than ACA insurance, it excludes many essential benefits and may leave significant gaps in care.

By comparing costs, understanding coverage limitations, and evaluating alternative health insurance options, you can determine whether a short-term health plan is truly the right health insurance plan for your situation.