Alabama Department of Insurance compares Short Term Health Insurance Plans to ACA Plans

                        Short‐Term Health Insurance Plan Information

Presented as a courtesy from NAIFA Alabama to Alabama Advisors

Short‐term limited duration plans are designed to fill temporary gaps in your insurance coverage, such as when you’re between jobs. They are generally considered to be major medical coverage; however, these plans only provide coverage for a limited amount of time.
Short‐term limited duration plans are not required to cover essential health benefits. They don’t have to cover maternity care, prescription drugs, mental health care, preventative care or other essential health benefits. Most short‐term limited duration health plans are medically underwritten. This means people with health conditions can be turned down or charged higher premiums. Short‐term plans are not the same as plans sold on the Affordable Care Act Exchange. 
Before you purchase health insurance, ask questions about the services that are covered and the services that are not covered. If you have questions about short‐term health insurance, call your insurance agent or contact the Alabama Department of Insurance Consumer Services Division at (334) 241‐4141.
                                    What’s required under these plans?

  ACA Health Insurance Plans Short-term Health Insurance Plans
Pre-existing Conditions Covered Yes Not Required
Guaranteed Issuance of Coverage Yes Not Required
*Plans are often medically underwritten
Potential Tax Subsidies Yes Not Required
Essential Health Benefits Coverage    
Outpatient Care Yes Not Required
Emergency Care Yes Not Required
Hospitalization Yes Not Required
Maternity and Newborn Care Yes Not Required
Mental Health and Substance Abuse Yes Not Required
Prescription Drugs Yes Not Required
Rehabilitation Services Yes Not Required
Laboratory Services Yes Not Required
Preventative and Wellness Yes Not Required
Pediatric Dental and Vision Care Yes Not Required

As with all insurance products, ask questions and make sure you understand the coverage you will receive before making the purchase.  The items listed about are for comparison only.  They do not represent all items covered or excluded for any health care plan.