Short Term Medical Insurance
Fast, Flexible, and Misunderstood

Introduction: What Is Short Term Medical Insurance, and Why Does It Matter?
When you’re between jobs, waiting for Open Enrollment, or unable to afford ACA coverage, Short Term Medical Insurance (STM) can fill the gap.
STM is not a long-term solution but it’s often a smart short-term one. It provides fast, temporary health coverage with lower premiums and same-day starts.
Let’s break down what STM is, what it covers, who it helps, and how to use it responsibly.
Explore options: https://onepointinsuranceagency.com/quote/health-insurance

What Is Short Term Medical Insurance?
Short Term Medical Insurance provides temporary coverage lasting 30 days to 36 months depending on your state. It's available year-round and typically includes:

• Immediate enrollment

• Lower monthly premiums

• Hospitalization and ER benefits

• Basic outpatient care

Who Should Consider STM Coverage?

• Recently unemployed and waiting for COBRA or new employer benefits

• Missed ACA Open Enrollment

• Freelancers, contractors, and gig workers

• Young adults aging off a parent’s plan

• Early retirees under 65

• Students and recent grads

• People waiting for Medicare or ACA Special Enrollment

What Does STM Cover?

Covered Services Typical Details ER visits Covered, subject to deductible/coinsurance Hospitalization Often covered with daily limits Surgeries Must be medically necessary Doctor visits 2–4 visits per year with copays Lab/X-rays Covered, with limits Ambulance Capped amount Rx drugs Usually generics or discount card

What’s Not Covered:

• Pre-existing conditions

• Maternity care

• Mental health services

• Preventive care (most plans)

• Brand-name prescriptions

• Dental & vision (unless bundled)

Short Term vs ACA Plans – Quick Breakdown

Feature STM Plan : ACA Plan Enrollment

Year-round Nov 1–Jan 15 (most states)

Pre-existing coverage No Yes

Essential health benefits No Yes

Subsidy eligibility No Yes

Duration 30–36 months Annual,

renewable Premiums Lower Higher

Real-World Scenarios

Graduate Gap
Sara, age 22, just graduated and has a 3-month gap before employer benefits. Her STM plan covered a $1,200 ER visit for a sprained ankle.

Family in Transition
A family of 4 avoids $1,800/month COBRA by using a $450 STM plan with a $5,000 deductible for 3 months.

Self-Employed Safety Net
Carlos, age 40, uses a high-deductible STM plan paired with accident and hospital indemnity add-ons to keep premiums low while staying protected.

How Enrollment Works

• Online application

• Simplified underwriting (health questions only)

• No coverage for pre-existing conditions

• Approval in minutes

• Coverage can start next day

Common Misunderstandings

STM is often called “junk insurance,” but it’s not deceptive if explained clearly. It’s designed to:

• Bridge temporary gaps

• Offer affordable, catastrophic protection

• Support healthy individuals in transition

Optional Add-ons to Boost Protection

• Accident Insurance

• Hospital Indemnity

• Critical Illness

• Telemedicine

• Rx Discount Cards

• Dental & Vision bundles

Top Carriers Offering STM Plans

Carrier Max Term Highlights UnitedHealthcare 36 months National network, brand name National General 36 months Bundles available Pivot Health 364 days Affordable plans with telehealth IHC Group Varies Flexible customization

Availability varies by state

Frequently Asked Questions

Q: Can I cancel anytime?
Yes, STM plans are month-to-month. Cancel with notice—no retro refunds.

Q: Will this protect me from ACA penalties?
There’s no federal ACA penalty anymore, but STM is not minimum essential coverage.

Q: Does it cover pregnancy?
No pregnancy is excluded unless it’s a complication after policy starts.

Q: Can I get coverage with diabetes or asthma?
STM plans typically deny for chronic illnesses or recent treatment.

Q: Will it cover out-of-state care?
Emergency coverage is usually nationwide, but in-network providers vary.

Where STM Is Allowed

State STM Allowed? Max Duration Georgia Yes 36 months Texas Yes 36 months Florida Yes 12 months (renewable) California No N/A New York No N/A Colorado Yes 6 months Illinois Yes 6 months

Check your state’s current rules before enrolling.

Cost Comparison: STM vs ACA vs COBRA

Profile ACA Bronze STM Plan COBRA Age 28, healthy $390/month $92/month $580/month Family of 3 $1,050/month $255/month $1,800/month Age 52, self-employed $670/month $168/month $950/month

Note: STM saves money, but covers less.

Advisor Ethics: Selling STM the Right Way

Be clear about exclusions and pre-existing limitations
Disclose that STM is not ACA-compliant
Recommend for short-term gaps only
Suggest bundling with accident or hospital coverage
Never oversell STM as long-term coverage

Global STM Context
In other countries with universal healthcare, short-term health insurance isn’t needed. But in the U.S., with gaps in employer and ACA coverage, STM fills a real need—especially for:

• Digital nomads

• College grads

• New immigrants

Need This Info for Clients?
Download our printable version here:
https://onepointinsuranceagency.com/resources/short-term-health-guide

Short Term Medical Is a Smart Tool—Use It Wisely
It’s not full coverage—but for the right person, at the right time, it’s a smart stopgap.
Use it to stay protected during job changes, school transitions, or open enrollment gaps.
📞 Call 770-884-8117 or apply here: https://onepointinsuranceagency.com/quote/health-insurance