Short-Term Health Insurance

The Division of Insurance warns consumers to be cautious when purchasing health insurance. There are many websites out there trying to lure consumers into purchasing a short-term plan while disguising them as ACA compliant policies. While it is up to the consumer to decide if they would like to purchase such policies, they just need to understand what they are purchasing.

Short-term medical plans are:

• Not minimum essential coverage
• Not compliant with the ACA which may result in paying a penalty unless you also purchase a qualified health plan.
• Intended to ’fill in gaps’ by only offering temporary coverage with limited benefits.
• Permitted to exclude from coverage pre-existing conditions.

To dispel any rumors and to learn about what’s new in health insurance and what options are available, consumers are encouraged to visit the Division’s NV Insurance 101 website at http://insurance101.nv.gov/. Consumers can also visit the Division’s RateWizard Tool to see actual rates and plan information being offered on and off the Exchange. Before you sign a contract verify that the insurance agent, agency or company are licensed. To verify a license, consumers may visit the Division’s “Verify a License” tool.  

Short-Term Health Insurance Frequently Asked Questions

When should I consider short-term health insurance?  
Does short-term health insurance provide coverage for preexisting conditions?  
Do short-term plans meet federal requirements of the Affordable Care Act (ACA)?  
Can I get a tax subsidy to help pay for my short-term health insurance?  
Can I renew this type of health insurance coverage? 

When should I consider short-term health insurance?  

Short-term medical insurance, also called Temporary health insurance or Term health insurance, can provide a temporary solution to help fill gaps in coverage. Consider short-term if you’re:

•    Between jobs
•    Waiting for other coverage to begin
•    Waiting to be eligible for Medicare coverage
•    Without health insurance, outside of Open Enrollment

Does short-term health insurance provide coverage for preexisting conditions?  

No. In most cases short-term insurance plans do not cover preexisting conditions.

Do short-term plans meet federal requirements of the Affordable Care Act (ACA)?  

No. Short-term medical insurance plans are not minimum essential coverage and, therefore, do not meet the mandated coverage necessary for you to avoid a tax penalty under the ACA. You may be subject to the tax penalty if other exemptions do not apply to you.

Can I get a tax subsidy to help pay for my short-term health insurance?  

No. Short-term plans do not qualify for tax subsidies under the ACA.

Can I renew this type of health insurance coverage? 

No. Short-term coverage is limited to the duration selected; therefore, it is non-renewable.