What is a short-term health insurance policy characterized by?

A short-term health insurance policy is characterized by being a temporary plan that offers limited coverage. These policies are designed to provide a safety net for individuals who may be between more stable health insurance options, such as when a person is transitioning jobs or waiting for a more comprehensive health plan to begin.

Short-term plans typically offer basic coverage options and might not include essential health benefits mandated by the Affordable Care Act, such as maternity care, mental health services, or substance use disorder treatment. This limited scope of coverage is an important characteristic that distinguishes short-term plans from more robust, long-lasting health insurance options.

Furthermore, short-term policies often have a maximum duration, allowing individuals to bridge gaps in their healthcare needs for a limited time. Understanding this context is crucial for evaluating when and why someone might consider this type of insurance.