Short-Term and Other Policies Sold Outside of the Marketplace

I heard about a short-term policy that has an option to renew. Does that mean I can keep it even if I get sick after buying the policy?

Ver en Español

Maybe.  Under a new regulation issued by the Trump Administration, short-term policies can include renewal features that would enable people to continue coverage for up to three years.  However, before buying the policy, it would be important to know if the policy is renewable at your option or at the option of the insurance company.  If it is only renewable at the insurer’s option, you probably wouldn’t be allowed to renew after you get sick.

It would also be very important to ask about how renewal premiums will be set.  Short-term policies in most states are allowed to set premiums, including renewal premiums, based on health status.  So if you do get sick, even if you have the right to renew the policy, you might not be able to afford to keep it.

Finally, short-term policies exclude pre-existing conditions.  At renewal, any health condition that you developed while covered under the policy can now be considered pre-existing, and so any care related to it won’t be covered.

While we have made every effort to provide accurate information in these FAQs, people should contact the health insurance Marketplace or Medicaid agency in their state for guidance on their specific circumstances.