Short-Term Health Insurance in Alabama

What Is Alabama Short-Term Health Insurance?

Short-term health insurance in Alabama provides temporary medical coverage for individuals seeking an alternative to ACA-compliant plans. These plans typically last from 1 month to 364 days, with renewals permitted under federal guidelines.

Important: These plans are not required to follow the Affordable Care Act (ACA) rules, so they may:

• Deny coverage based on health history 
• Exclude preexisting conditions 
• Omit key services like maternity care, mental health, or prescriptions 

The Department of Health and Human Services (HHS) has updated the definition of short-term health insurance but will delay strict enforcement of the new rules while considering further changes.

Healthcare.com, the parent company of Healthcare Insider, develops and markets short-term and supplemental insurance products under the Pivot Health brand. These plans are underwritten by Companion Life Insurance Company, The North River Insurance Company (an affiliate of Crum & Forster), and Pan-American Life Insurance Company.

What Short-Term Health Insurance Includes

Short-term medical plans generally help with costs from unexpected illnesses or injuries. Benefits often cover:

• Doctor visits 
• Emergency care 
• Hospitalization 
• Surgical procedures 
• X-rays and lab tests 

Limitations and Common Exclusions

These plans are not designed to meet every healthcare need and often exclude:

• Pre-existing conditions 
• Maternity services 
• Routine preventive care 
• Dental and vision care 
• Mental health treatment 

Short-term health insurance is meant for temporary protection and is less comprehensive than ACA-compliant major medical coverage. It’s best suited for bridging gaps between more complete health plans, with coverage details varying by insurer and plan.

Who Should Consider a Short-Term Plan in Alabama?

Short-term plans may be a good fit for:

• People without employer coverage who are looking for affordable premiums 
• Those who missed Open Enrollment for ACA plans 
• Healthy individuals who need minimal coverage 
• People between jobs or waiting for new coverage to start 
• Healthy individuals who don’t qualify for ACA plan subsidies and need a more affordable option 

When it may not be a good fit:

• You have ongoing or preexisting medical conditions 
• You require essential benefits like maternity or mental health services 

Discover more situations where short-term medical plans make sense.

Pros and Cons of Short-Term Plans

Pros

• Lower monthly premiums 
• Available year-round 
• Useful as a temporary bridge 

Cons

• May deny applicants based on health 
• No coverage for preexisting conditions 
• Doesn’t include essential health benefits 

Types of Costs with Short-Term Plans in Alabama

Typical costs associated with short-term plans include:

• Premiums: Monthly payment to keep your plan active 
• Deductibles: What you pay before the plan contributes 
• Copayments: Flat fees for services like doctor visits 
• Coinsurance: Your share of covered service costs after deductible 
• Out-of-pocket maximum: The maximum you’ll pay during the plan’s term 

Other Alternative ACA Plan Options to Consider

Supplemental Health Plans

Supplemental insurance fills in gaps left by primary coverage — ideal when you’re on a low-cost insurance plan or private health insurance with higher deductibles. From accident insurance to critical illness protection, these plans can cover unexpected costs like rent or rehab while you recover.

Types of Supplemental Insurance:

• Accident, critical illness, hospital indemnity, and cancer policies 
• Everyday coverage for urgent care and surprise bills 
• Year-round enrollment for many plans 

Dental and Vision Insurance Plans

Bundling dental and vision insurance with your private medical insurance helps manage out-of-pocket expenses and supports overall health.

Coverage Benefits:

• Routine care and major procedures with fast activation 
• Bundled savings with vision (glasses, lenses, exams, surgery discounts) 
• Useful for families, young adults, and students managing tight budgets 

Health Care Sharing Ministry Programs

These faith-based plans provide an alternative to traditional private health insurance, especially for those aligned with Christian values seeking low-cost coverage. Though not technically insurance, they offer flexible, budget-friendly ways to share medical costs.

Highlights:

• Monthly “shares” instead of premiums 
• Community-driven financial support 
• Faith, agreement, and a healthy lifestyle are typically required 

Fixed Benefit Medical Insurance

Fixed benefit medical insurance pays a set cash amount per service, giving you a predictable, deductible-free way to manage care costs. It works well with or as a supplement to private or short-term insurance, especially for young adults or the self-employed.

Highlights:

• No network restrictions and fast payouts 
• Helps manage budgets with fixed coverage amounts 
• Useful for those seeking affordable alternatives 

Next Steps: Is a Short-Term Plan Right for You?

Here’s how to evaluate your options:

• Compare short-term plan quotes with ACA Marketplace or employer-sponsored plans 
• Review policy details: premiums, deductibles, coinsurance, copays, and exclusions 
• Determine whether the plan covers your likely medical needs 

If you’re ready to explore health insurance in Alabama, licensed agents can help you find a short-term plan that works for your situation.