Best Private Health Insurance Plans: Short-Term, Supplemental, or Fixed Benefit?

Overview

Health insurance is essential, but not everyone qualifies for ACA plan subsidies—or wants to wait for Open Enrollment. That’s where private health insurance plans come in. Options like short-term, supplemental, and fixed benefit policies can provide affordable alternatives or added protection.

But with so many choices, how do you decide on the best private health insurance plan for yourself or your family? This guide compares three leading non-ACA health plans to help you make an informed decision.

Understanding Private Non-ACA Health Plans

Private, non-ACA health insurance plans are sold directly by insurers rather than through federal or state marketplaces. Unlike ACA-compliant plans, they:

• Don’t always cover preexisting conditions

• May exclude essential benefits (like maternity or mental health)

• Typically cost less, but cover less

If you’re exploring alternatives to marketplace insurance, you’ll find a mix of options that vary by flexibility, price, and coverage level. Some of the most common include:

• Short-term health insurance

• Supplemental insurance (e.g., accident, hospital indemnity)

• Fixed benefit (indemnity) plans

Best Private Health Insurance Plans for Individuals

Short-Term Health Insurance

Short-term health plans offer temporary protection—lasting from a few months up to a year in most states.

Pros:

• Fast approval (often same-day)

• Lower premiums than ACA marketplace plans

• Flexible cancellation

Cons:

• No coverage for preexisting conditions

• Limited benefits compared to ACA plans

• Possible payout caps

Best for individuals who are:

• Between jobs

• Waiting for Open Enrollment

• Seeking an affordable safety net

And if cost and quality matter, review our guide to the best short-term health insurance companies.

Best Private Health Insurance Plans for Families

Supplemental Insurance

Supplemental insurance fills the financial gaps left by other coverage. Popular types include accident insurance, hospital indemnity, and critical illness policies.

Pros:

• Direct cash benefits for covered events

• Helps pay deductibles, copays, or living expenses

• Can be layered onto ACA, employer, or short-term plans

Cons:

• Not a full replacement for comprehensive insurance

• Only covers specific conditions or events

Best for families who:

• Have high-deductible health plans

• Want financial peace of mind for emergencies

• Need added security for kids’ sports, accidents, or hospital stays

Families shopping across state lines should also compare options by region. See our breakdown of health insurance options by state.

Fixed Benefit (Indemnity) Plans

Fixed benefit plans pay a set amount for covered services—for example, $150 per doctor visit or $1,000 for a hospital stay—no matter the actual bill.

Pros:

• Predictable payouts

• Cash benefits can cover medical or non-medical expenses

• Works as a supplement to other insurance

Cons:

• Payouts may not match actual costs

• Limited as a standalone solution

Best for individuals and families who:

• Want cost control with defined benefits

• Prefer financial flexibility

• Already have another form of coverage

Comparison Table: Short-Term vs. Supplemental vs. Fixed Benefit

How to Choose the Best Private Health Insurance Plan

Your choice depends on coverage needs, budget, and timing:

• Individuals: Short-term plans are often the best fit for temporary, low-cost coverage.

• Families: Supplemental and fixed benefit plans help manage unexpected expenses and gaps in major medical insurance.

• Anyone on a budget: Pairing a short-term plan with a supplemental or fixed benefit policy can increase protection without breaking the bank.

If you’re weighing ACA coverage against private alternatives, it may help to read more about non-marketplace vs. marketplace health insurance.

FAQs

What are the best non-ACA health plans?
The top choices are short-term, supplemental, and fixed benefit plans. Each serves different needs depending on whether you want temporary coverage, financial backup, or predictable payouts.

Are private health insurance plans cheaper than ACA plans?
Yes, private non-ACA health plans usually have lower monthly premiums. But they also provide fewer benefits and exclude preexisting conditions. For a broader perspective, compare alternatives to marketplace health insurance.

What’s the best private health insurance plan for families?
Families often benefit most from supplemental or fixed benefit plans, which offer financial support for hospital stays, accidents, or critical illnesses.

What’s the best private health insurance plan for individuals?
Individuals who need temporary coverage often find short-term health plans to be the most affordable and flexible option.

Bottom Line

Choosing between short-term, supplemental, and fixed benefit insurance depends on whether you need temporary protection, financial gap coverage, or predictable payouts. While these can be the best private health insurance plans for individuals or families in specific situations, they are not substitutes for ACA-compliant coverage. Non-ACA plans vary by state and insurer, so always review NAIC consumer guidance before enrolling

Compare options at Healthcare.com or call 866-435-1658 to speak with a licensed insurance agent who can walk you through your choices.