How does short-term health insurance differ from traditional health insurance?

Short-term health insurance is designed to provide temporary coverage for individuals who may be in transition or between health insurance plans. One of the key characteristics of short-term plans is that they typically offer less coverage compared to traditional health insurance. This reduced level of coverage can manifest in several ways, such as smaller networks of healthcare providers, limited benefits, and exclusions for certain types of care.

Traditional health insurance generally includes a more comprehensive range of services, such as preventive care, maternity care, and mental health services, as mandated by the Affordable Care Act. In contrast, short-term plans often do not cover these essential health benefits or might impose waiting periods for specific services.

Moreover, short-term plans are intended for temporary use and do not provide the same level of protections that come with traditional plans, such as lifetime caps on coverage or guaranteed renewability. Therefore, those seeking more comprehensive health insurance solutions would typically opt for traditional plans, as they align better with long-term health care needs and support broader access to necessary medical services.