Short Term Medical Insurance (STM)

STM is not a permanent solution, but may be appropriate during transitions (for example, between jobs or waiting for employer benefits to begin).

Here’s what you should know about STM:

• Requires underwriting. Your age, current health, and medical conditions determine whether you are approved.
• Limited benefits. STM offers basic medical coverage and does not cover certain medical expenses such as maternity and newborn care, prescriptions, or pre-existing conditions. In addition, there is a dollar limit for each coverage period.
• Coverage is brief. Depending on state requirements, you can only maintain an STM policy for a limited amount of time. States also have specific rules on whether you can reapply.
• You are always able to apply. In most states, you can apply for an STM policy any time of year, not just during Open Enrollment.
• Premiums can be less expensive than alternatives. Because STM benefits are limited, premiums can be less expensive than ACA-compliant major medical plans.

Affordable Care Act (ACA) Plans

If you don’t have health insurance through an employer, you might explore plans available through the Marketplace.

ACA Plans varies from STM plans in a few significant ways:

• Includes comprehensive coverage. Unlike STM, ACA Plans covers pre-existing conditions, prescriptions, and maternity. In addition, there are no lifetime or yearly coverage limits like there are for STM plans.
• Does not require underwriting. You are guaranteed coverage for an ACA Plan.
• Provides long term coverage. Your ACA Plan can last a full year or longer as long as you keep paying your premiums.
• Limited application window. You can only apply for an ACA Plan during Open Enrollment or, if you qualify, during a Special Enrollment Period.

When choosing a plan that’s right for you, in addition to considering how long you’ll need coverage, you should also consider your budget and your current health. On an STM plan, you could end up paying more out of pocket if you need ongoing treatment for pre-existing conditions. But, if you are a healthy individual looking for a temporary safety net, a short-term plan could be an affordable and quick solution.

When an ACA plan is infeasible due to budget constraints or missed enrollment periods, STM is certainly better than taking a risk with no coverage.

Learn more about Short Term Medical insurance

¹ACA enrollment falls by millions. CNBC. www.cnbc.com/2026/07/03/aca-enrollment-enhanced-subsidies-lapse-fraud.html, July 3, 2026.

IMPORTANT: This program only provides temporary health insurance that does not provide comprehensive/major medical coverage.  It also does not satisfy the “minimum essential coverage” requirements of the Patient Protection and Affordable Care Act.
Everest Insurance® markets property, casualty, specialty and other lines of admitted and non-admitted direct insurance on behalf of Everest Group, Ltd., and its affiliated companies.  Additional information about Everest, our people, and our products can be found on our website at www.everestglobal.com. This product is underwritten by Everest Reinsurance Company (or Everest Denali Insurance Company), depending on jurisdiction. All issuing companies may not do business in all jurisdictions. This literature is descriptive only. All policy terms, conditions, and pricing is solely determined by Everest and all coverage is subject to the language of the policy as issued. Not all products and product features may be available in all jurisdictions and availability may be subject to business and regulatory approval in each jurisdiction. Meyer and Associates is the Administrator of the Collegiate Alumni Trust, neither of which are affiliated with Everest. No employees, agents and/or representatives of Everest are involved in the operation of Companies.