The Truth About Short-Term Health Insurance (From Someone Who’s Seen It All)

Last month, a freelance photographer from Delray Beach called me in tears. She’d bought short-term health insurance thinking she was being smart about costs. Then she tore her ACL playing volleyball. The plan didn’t cover it. “Pre-existing condition,” they said, because she’d mentioned knee pain to her doctor six months earlier.

That $30,000 surgery bill? All hers.

Look, I’m not here to bash short-term plans. Sometimes they’re exactly what you need. But after 8 years of helping Palm Beach County residents navigate health insurance, I’ve seen too many people get burned because they didn’t understand what they were buying.

What Short-Term Insurance Actually Is (And Isn’t)

Short-term health insurance is like a raincoat in Florida – it’ll keep you dry in a quick shower, but don’t count on it during a hurricane.

Here’s what these plans do:
– Cover true emergencies (think broken bones, not chronic conditions)
– Last 1-12 months in Florida
– Cost way less than regular insurance
– Get you covered fast (sometimes same day)

Here’s what they DON’T do:
– Cover pre-existing conditions (and they define this VERY broadly)
– Include prescription drugs (usually)
– Cover preventive care, maternity, or mental health
– Protect you from lifetime or annual limits

When Short-Term Plans Make Sense

The Job Hopper: Mark from Boca Raton left his corporate job in March, starting a new one in June. Three months without coverage felt risky. Short-term plan: perfect bridge.

The Recent Grad: Emma aged off her parents’ plan in May but doesn’t start her job until September. Four months of short-term coverage beats crossing her fingers.

The Missed-Enrollment Person: If you missed open enrollment and don’t qualify for special enrollment, short-term beats nothing while you wait for November.

The Early Retiree: Jim retired at 62. Three years until Medicare. He uses short-term plans strategically between ACA enrollment periods when traveling.

When to Run Away (Fast)

DO NOT get short-term insurance if you have:
– Any chronic condition (diabetes, high blood pressure, anxiety – anything)
– Regular prescriptions
– Planned surgery or pregnancy
– A history of… well, anything medical

That photographer I mentioned? Her “pre-existing” knee pain was from a yoga class. That’s how strict these plans are.

The Hidden Catches Nobody Mentions

The “Gotcha” Definitions: Short-term insurers are creative. Allergies? Pre-existing. Ever had therapy? Mental health excluded. Mentioned back pain five years ago? Sorry, not covered.

The Renewal Trap: You can’t just keep renewing. In Florida, you get 12 months max, then you need regular insurance or a new short-term plan. New plan = new pre-existing condition lookback.

The Tax Penalty (Sometimes): Some states penalize you for not having “real” insurance. Florida doesn’t, but if you move or travel extensively, check those rules.

Real Math from Real Situations

Short-term Plan:
– Premium: $75/month
– Deductible: $5,000
– Coverage: Emergencies only
– Annual max: $1 million

ACA Plan with Subsidies:
– Premium: $150/month (after subsidies)
– Deductible: $3,000
– Coverage: Everything essential
– No annual max

That extra $75/month buys you REAL coverage. One prescription, one doctor visit, one “pre-existing” condition – and the ACA plan already pays for itself.

My Honest Advice?

Short-term insurance is like a spare tire – good for getting you to safety, not for driving cross-country. Use it for true gaps:
– Between jobs (under 3 months)
– Waiting for other coverage to start
– Genuine emergencies when you missed enrollment

But please, PLEASE don’t use it as your main insurance strategy. I’ve seen too many people get stuck with massive bills they thought would be covered.

Better Alternatives You Might Not Know About

Missed open enrollment? Check if you qualify for special enrollment. Lost coverage, moved, had a baby, got married? You might still get real insurance.

Think you can’t afford ACA plans? Let’s run the numbers. With subsidies, many of my clients pay less for real coverage than short-term plans.

Young and healthy? High-deductible ACA plans with HSAs often cost barely more than short-term but provide actual protection.

Let’s Find Your Real Solution

If you’re considering short-term insurance, let’s talk first. Half the time, I find better options my clients didn’t know existed. The other half? At least you’ll understand exactly what you’re buying and what risks you’re taking.

No judgment here – I get that insurance is expensive and confusing. But one phone call could save you from a $30,000 surprise.

Call me at 954-646-3666 or email yheaven@aol.com. Let’s figure out what actually makes sense for your situation.

P.S. That photographer? We got her on an ACA plan during the next enrollment. Her knee surgery? Covered. Sometimes the “expensive” option is actually the cheapest.

Yvonne Heaven helps Palm Beach County residents understand ALL their health insurance options – not just the ones that sound good in ads. With 8 years of experience, she’s seen every situation and knows which solutions actually work.