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If you’re experiencing a lapse in health insurance—perhaps because you lost employer-sponsored coverage or because you’re waiting for open enrollment to begin—short-term health insurance is one way to get temporary coverage. It’s intended to “bridge a short gap in coverage between other plans,” says Louise Norris, a licensed health insurance agent based in Colorado and author of The Insider’s Guide to Obamacare’s Open Enrollment.
But finding short-term health insurance on your own can be daunting. So we did the initial legwork to help you weigh your options and ranked the best short-term health insurance companies of 2021. Read on to see which providers made our list.
To determine the best short-term health insurance companies of 2021, the Forbes Health editorial team evaluated U.S. insurance companies that offer plans nationwide by how many states they provide coverage in; the sizes of their provider networks; their starting rates for physician copays and specialist copays, the benefits their plans include and their reputations among agencies like the Better Business Bureau (which focuses on customer satisfaction).
Offers plans in all 50 states and Washington, D.C.
N/A
Dental and vision
Offers plans in all 50 states and Washington, D.C.
N/A
Dental and vision
Although it’s a federal law and not an insurance company in itself, the Consolidated Omnibus Budget Reconciliation Act (COBRA) is one of the best options for short-term health insurance, as it allows you to remain on your employer’s group health insurance plan after a change in job status. With COBRA, you can continue your coverage for 18 to 36 months, depending on your circumstances.
COBRA can be expensive, though, since you’re paying the full premium of your health insurance plan, including the portion that your employer previously paid. But its coverage and availability options can allow for a seamless transition in your health coverage, as you maintain access to the same doctors, copays and prescription coverage you had with your employer’s health insurance plan. Additionally, coverage is retroactive, meaning you’re insured from the date your original insurance coverage lapsed, and you can cancel COBRA at any time.
Offers plans in 40 states
N/A
Telemedicine and hearing
Offers plans in 40 states
N/A
Telemedicine and hearing
For people looking for short-term health insurance at a more affordable price, Pivot Health is a good option to explore, as its premiums and copays are often lower than those of COBRA. Deductibles range from $1,000 to $10,000, and it offers a 20% to 30% coinsurance on all plans, a separate $500 deductible on prescription drugs (for certain plans), a $30 primary physician copay and a $60 urgent care and specialist copay (on certain plans). Coverage is flexible, too, as certain plans have no network restrictions, and you can enroll in Pivot coverage for anywhere from 30 days to nearly three years, depending on your state. Other perks offered by this provider include up to 70% off prescription drugs, as well as discounts of up to 30% on eye exams, glasses and contact lenses. Pivot Health plans are available in all but the following states: Arkansas, Colorado, Massachusetts, Maryland, Maine, New Hampshire, New Mexico, New York, Utah and Washington.
Offers plans in all 50 states and Washington, D.C.
A+
Dental
Offers plans in all 50 states and Washington, D.C.
A+
Dental
One of the most widely-known health insurance providers in the U.S., UnitedHealthcare offers a variety of short-term health insurance plans underwritten by Golden Rule Insurance Company with different deductibles and coinsurance rates. What’s more, users gain access to their vast network of 1.4 million physicians and 6,500 hospitals and other facilities. Length of coverage for short-term health insurance plans ranges from one month to 12 months (depending on your state), and you’re able to drop your coverage with no penalty. Plans can include dental coverage as well.
As it sounds, short-term health insurance is a policy that provides temporary coverage, usually from several months up to a year. Short-term health insurance isn’t regulated by the Affordable Care Act (ACA), which means plans don’t have to provide the minimum essential health benefits mandated by the ACA. (These benefits include inpatient and outpatient hospital care, mental health services and prescription drug coverage.) Short-term plans also don’t have to cover pre-existing conditions. The plans are designed for healthy people and generally have caps on how much they will pay for certain services or in total.
Short-term health insurance plans can have initial terms of up to 364 days and can be renewed for up to three years, though some states have stricter rules about duration. You can sign up for this temporary coverage at any time of the year, as opposed to just once a year like with the open enrollment period for marketplace plans.
Short-term plans often make sense for the following groups, according to Josh Archambault, founder of Presidents Lane Consulting in Massachusetts:
Anyone who can pass an insurance company’s medical underwriting rules can buy a short-term health insurance plan, says Norris. “This usually means being under 65 years old and in fairly good health,” she notes. Underwriting refers to how an insurance company determines your health status to decide whether they’ll offer you coverage, at what price and with what exclusions.
There are 11 states in which short-term health insurance plans aren’t available “either because they’ve banned them or implemented rules that are strict enough that insurers have chosen to not sell plans there,” says Norris. As of 2021, short-term coverage isn’t available in California, Colorado, Connecticut, Hawaii, Maine, Massachusetts, New Jersey, New Mexico, New York, Rhode Island and Vermont.
“You don’t have to do anything to qualify, per se,” says Archambault. You just sign up and pay for coverage.
Most short-term health insurance plans use “very limited medical underwriting during the application process,” says Norris. “They usually just have a handful of yes/no questions about significant medical conditions and will offer coverage to anyone who can answer ‘no’ to all the questions.”
“Post-claims underwriting” is common with short-term plans, which means when you file a new claim, the insurer often combs through records to make sure it isn’t tied to a pre-existing condition, adds Norris. “If it is, they can reject the claim or even rescind the policy,” she says.
Short-term health insurance tends to be cheaper than major medical plans. On average, these plans cost about 50% to 80% less than regular individual market coverage, says Archambault.
The cost of your short-term health insurance plan will vary based on your age, location and the level of coverage you select, says Norris. “Plans with more robust coverage cost more, but pricing for short-term plans can start well under $10 per month” she adds.
Affordability is one reason this type of health insurance appeals to some people.
Short-term health insurance generally covers unexpected medical needs, including hospitalization and surgeries, says Norris. But she stresses that they are often stripped-down plans with restrictive maximum limits, which could leave you saddled with big bills. It’s important to pay close attention to your plan’s fine print and read about what it covers before you sign up.
If you’re considering short-term health insurance, be aware that if you had a qualifying life event, such as losing your job, you’re eligible to enroll in an ACA-compliant plan through the marketplace at any time, so you may have options beyond a short-term plan. “There are not that many circumstances in which you have to rely on short-term coverage,” says Norris.
If you’ve decided short-term health insurance is right for you, there are several factors to consider to ensure you’re choosing the best plan for your needs. Norris suggests asking yourself these questions:
If you lose health insurance coverage through your employer, you can enroll in the Consolidated Omnibus Budget Reconciliation Act (COBRA), which requires insurers to provide a temporary continuation of your same health insurance that would otherwise be terminated. You maintain the same medical, dental and vision benefits you had with your employer-provided coverage. However, your previous employer will no longer cover part of the monthly premium; instead, you have to pay the full premium, plus an administrative fee.
COBRA is more expensive than short-term health insurance, but it’s “typically a very good option,” says Joseph Torella, president of employee benefits with HUB International’s East Region, a global insurance brokerage. “If you have specific coverage needs and you’re not as concerned about the expense, you’re far better off in COBRA,” he says.
Company | Company - Logo | Forbes Advisor Rating | Forbes Advisor Rating | Coverage area | BBB grade | Coverage can include | Learn More CTA text | Learn more CTA below text | VIEW MORE |
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COBRA | 5.0 | Offers plans in all 50 states and Washington, D.C. | N/A | Dental and vision | View More | ||||
Pivot Health | 4.0 | Offers plans in 40 states | N/A | Telemedicine and hearing | View More | ||||
UnitedHealthcare | 4.0 | Offers plans in all 50 states and Washington, D.C. | A+ | Dental | View More |
To determine the best short-term health insurance companies of 2021, the Forbes Health editorial team evaluated insurance companies that offer plans nationwide in terms of:
Angela Haupt has been a health writer and editor for more than a decade. She was previously the managing editor of health at U.S. News & World Report, where she spent 11 years covering and editing wellness and conditions topics. She helped launch the popular Best Diets rankings and continued to oversee the franchise throughout her time there. Angela has also written about health and wellness for publications such as the Washington Post, USA Today, Everyday Health and Verywell Fit. She’s passionate about helping people make healthier decisions through accurate journalism that delivers the facts and puts them in context.
Alena is a professional writer, editor and manager with a lifelong passion for helping others live well. Before coming to Forbes Health, Alena worked as a digital media consultant for both B2B and B2C health-focused companies for several years, building content strategies and leaning into the world of e-commerce. She is also a newly minted functional medicine certified health coach.