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Pros and Cons to Short Term Health insurance.

Most people know this type of insurance by the name of gap insurance. This is because historically it was used to fill the “gap” between jobs.  Now with the high cost of healthcare, people are using it for their major medical insurance and alternative to a traditional plan. This is about the only option if you missed open enrollment and you want health insurance.


  • Very affordable and a great option for those that are young and healthy.
  • Makes great financial sense.
  • Good option for people that don’t qualify for a tax credit through the marketplace and find health insurance unaffordable.
  • The insurance can start the next day as opposed to having to wait till the first of the next month.
  • Still has co-pays for Dr visits and urgent care.
  • Has deductibles and maximum out of pocket expense to protect you in case something major happens.
  • Can have short term for a total of 12 months.
  • PPO national provider network which means you are covered in all 50 states.
  • More Drs and hospitals in network than in an individual major medical plan.


  • Medical Questions are required to qualify.
  • Pre-existing conditions are not covered.
  • Prescription discount card only.
  • Maternity and mental health are excluded to keep premiums lower.
  • Preventative care is covered, but not at 100%.
  • Subject to Tax penalty, However the new executive order nullifies that.

Hopefully this was able to clear up some of the misconceptions about Gap/Short Term Insurance. If you are one of the millions living without health insurance because the premiums are too expensive and you didn’t think there were any other options, this type of policy may be for you.

Betty Bauer
Betty Bauer
Partner/ Insurance Agent
Healthcare Solutions Team

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