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.