ACA VS. Short Term
ACA Health Insurance
- Marketplace Plans: ACA insurance plans are sold on the health care Marketplace
- Subsidized Premiums: In most cases, ACA plans are subsidized by the Federal or State government, resulting in lower monthly premiums.
- Coverage Duration: These plans provide coverage for a full calendar year for individuals or families.
- Comprehensive Benefits: ACA plans offer comprehensive benefits, including preventive care, prescription drugs, and essential health services.
- Eligibility: Anyone can buy an ACA plan directly, even if their job does not offer health insurance.
- SEPs: Enrollment typically occurs during Open Enrollment or due to a qualified life event.
- Guaranteed Acceptance: No underwriting is needed; you are guaranteed a plan regardless of your health history.
Short-Term Insurance
- Temporary Coverage: Short-term plans are suitable for bridging gaps when you are uninsured for a short period.
- Limited Duration: These plans offer limited coverage for a specific time until you transition to a more permanent plan.
- Eligibility Scenarios:
- Recent college graduates
- Individuals between jobs
- Early retirees
- Those waiting for ACA coverage to start
- Individuals turning 26 and coming off a parent’s plan
- Underwriting: Unlike ACA plans, short-term plans do not cover preexisting conditions, and you must answer medical questions to apply.
- Enrollment Flexibility: You can apply for short-term plans anytime.
- Coverage Duration: The duration of short term plans is a maximum of 4 months.
- Monthly Premiums: Varies based on the plan and personal factors.
In summary, ACA plans are comprehensive, subject to annual renewal, and fully aligned with ACA requirements. Short-term serves as a temporary stopgap, lacks essential benefits, and is ideal for specific scenarios.