Millions of Americans are shopping for health coverage right now, and a growing share are landing on short-term plans that cost a fraction of a standard policy.
These stripped-down products can run under $100 a month for a healthy adult, compared with several hundred for an ACA marketplace plan.
Short-term plans, which can now last up to three years in many states under federal rules, don't have to cover pre-existing conditions, prescription drugs, maternity care, or mental health treatment.
Insurers can also reject you outright if your medical history looks expensive.
Average marketplace premiums have climbed sharply in recent years, and for households that don't qualify for subsidies, the monthly bill can rival a car payment.
A plan that covers a broken arm and a surprise ER visit for one-third the cost feels like breathing room.
A short-term policy might pay a few thousand dollars toward a hospital stay and leave you with the rest.
One appendectomy or a bad car accident can wipe out a year of premium savings.
Consumer advocates regularly warn that these plans work best for people who are young, healthy, and mostly need protection against a catastrophic bill.
Because short-term plans aren't "minimum essential coverage," they don't satisfy the individual mandate in states that still enforce one, and they won't unlock subsidies.
Some buyers assume they're getting a marketplace plan and only discover the difference when a claim is denied.
Insurers have rolled out slicker apps and next-day approval, and brokers earn commissions for steering customers toward these products.
That means the plan you're shown first isn't always the one that fits your budget or your health.
If you're weighing one, read the exclusions page before the price page.
Check whether your doctors are in-network, whether prescriptions are covered at all, and what the out-of-pocket maximum actually is.
Compare it against a subsidized marketplace plan, since many households qualify for tax credits that shrink the gap more than they expect.
If you have any chronic condition, take a maintenance medication, or plan to start a family, a short-term plan is usually the wrong tool.
If you're between jobs and healthy, it can bridge a gap without draining savings.
Either way, don't cancel existing coverage until the new policy is active, because a lapse can follow you.
Outside open enrollment, a qualifying life event, like a job loss or a move, is often the only way into a marketplace plan.
That deadline pressure is exactly what pushes some shoppers toward short-term coverage without reading the fine print.
Our take: short-term plans aren't a scam, but they're sold like one-size-fits-all insurance when they're really a narrow bridge for a narrow group.
The savings are real, and so is the exposure.
Final Thoughts
Treat the low premium as a starting point for questions, not the answer.