Short‑term health plans for freelancers: pros and cons
Freelancers often face gaps in coverage. Short‑term health insurance looks cheap and flexible, but exclusions and limits can make it risky. Here’s how to weigh the trade‑offs.
Why freelancers look at short‑term health insurance
- Lower premiums: Monthly costs are often 50–80% less than ACA marketplace plans.
- Enroll anytime: No open enrollment window — apply when you need coverage.
- Fast approvals: Policies can start within days, useful for sudden gaps.
- Flexible duration: Coverage can last weeks to a few months depending on state rules.
Cons that can hurt
- Major gapNo pre‑existing conditions: Ongoing health needs aren’t covered.
- LimitedPreventive, maternity, mental health excluded: Most short‑term plans skip these entirely.
- Hidden costHigh deductibles and coinsurance: Cheap premiums can mean expensive usage.
- RestrictedState rules and duration caps: Not available everywhere; max term often 4 months.
Best use cases for freelancers
- Bridge coverage: Between gigs or waiting for ACA enrollment.
- Healthy freelancers: No chronic conditions, mainly want catastrophic protection.
- Temporary budget stopgap: Need minimal coverage until income stabilizes.
Decision checklist
- List your needs: Prescriptions, therapy, ongoing care? If yes, short‑term is insufficient.
- Check state rules: Verify availability and max term length.
- Run the math: Premium + deductible + coinsurance + likely services.
- Read exclusions: Look‑back periods, benefit caps, renewal disclaimers.
- Plan your exit: Target ACA enrollment or group coverage as soon as possible.
FAQs: Short‑term health insurance for freelancers
Does short‑term insurance cover prescriptions?
Usually no. Some plans offer discount cards, but not full prescription coverage.
Can I renew a short‑term plan?
Renewals often require a new application, which can reset exclusions. Federal rules cap total duration.
Is it cheaper than ACA marketplace plans?
Yes, premiums are lower. But ACA plans include essential benefits and subsidies that short‑term plans lack.
Who should avoid short‑term insurance?
Freelancers with chronic conditions, ongoing prescriptions, or who need preventive care should avoid it.
What’s the biggest risk?
Thinking it’s a substitute for comprehensive coverage. It’s only a temporary bridge.
General information only. For personalized guidance, consult a licensed health insurance professional.
