How to Get Free or Low-Cost Health Insurance

3. Short-term Health Insurance

Short-term health insurance often costs less than more comprehensive plans. It's an attractive option for people looking for temporary coverage if they aren't eligible for Marketplace subsidies or missed their enrollment window for ACA-compliant coverage.

In some states, plans are sold in terms of up to 364 days of coverage. And some insurers allow their plans to be renewed for up to a total of 36 months. These are currently the upper limits allowed by the federal government.

But the Biden administration has finalized a rule change that will cap short-term health plans at initial terms of no more than three months, and total duration (including renewal, if offered) of no more than four months, starting in September 2024.

Even while the more relaxed federal rules are in place, there are states that place more restrictive limits on plan durations. Some states do not allow short-term plans to be sold at all.

Even in states that do not limit short-term plans beyond the federal minimum requirements, insurers can choose to offer plans that are non-renewable or that have shorter durations.