Short term health insurance sometimes referred to as term health insurance serves to fill in the gap in health coverage while in a state of transition. Transition periods such as in-between jobs, awaiting benefits from a new job, missed open enrollment time slot, and/or a college student fresh out of school are a few occasions when short term health insurance is necessary.
Short term health insurance under the Obama Administration developed regulations to limit the length up to three months with no opportunity for renewal. Currently, under the Trump Administration short term health insurance can be purchased for policies lasting up to 1 year with opportunity for renewal a maximum of two times.
Short term health insurance is regulated through the states not the Affordable Care Act which set specific stipulations and guidelines for insurance companies to abide by. Due to this, short term insurance has large coverage gaps, some not including maternity leave, mental health care, or prescription drugs. People with short-term health insurance policies have coverage but “skinny coverage”.