Health Insurance
What is the difference between ACA and short-term health insurance?
ACA plans: cover pre-existing conditions, all 10 essential benefits, no benefit caps, may qualify for subsidies. Short-term plans: exclude pre-existing conditions, don't cover essential benefits, have benefit caps as low as $100,000, don't qualify for subsidies. Federal rules limit initial short-term contracts to 3 months (4 months maximum). For anyone with health conditions, ACA is the only real option.
Key Points
- ACA: covers pre-existing conditions, all essential benefits, no benefit caps
- Short-term: excludes pre-existing conditions, limited benefits, caps as low as $100,000
- Short-term federal limit: 3-month initial contract, 4 months maximum
- Short-term does not qualify for ACA subsidies
- For anyone with health conditions: ACA is the only real option
- Short-term is only appropriate for healthy people needing a 1–3 month bridge