Written by Tara Seboldt
HealthCare Writer
We want to help you make educated healthcare decisions. While this post may have links to lead generation forms, this won’t influence our writing. We adhere to strict editorial standards to provide the most accurate and unbiased information.
What You Need to Know
- Short-term health plans, also known as Short-Term Medical (STM) insurance, offer fast, flexible coverage from 1 month to 364 days. In Tennessee, short-term policies can last up to 12 months and may be renewed for a maximum of 36 months under federal guidelines.
- These plans allow you to enroll online in minutes with coverage starting as soon as the next day. Premiums are usually lower than ACA Marketplace plans without subsidies.
- These plans often exclude coverage for preexisting conditions and essential health benefits.
What Is Tennessee Short-Term Health Insurance?
Short-term health insurance in Tennessee provides temporary medical coverage for individuals who need an alternative to ACA-compliant plans. Plans typically last up to 12 months and may be renewed for a total of 36 months, following federal standards.
Important: These plans are not required to follow the Affordable Care Act (ACA). This means they may:
- Deny coverage based on health history
- Exclude preexisting conditions
- Omit essential services such as maternity care, mental health, or prescriptions
The Department of Health and Human Services (HHS) has recently updated the definition of short-term health insurance, but strict enforcement has been delayed while future rules are considered.
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 health insurance in Tennessee generally helps with unexpected medical costs, covering services such as:
- Doctor visits
- Emergency care
- Hospitalization
- Surgical procedures
- X-rays and lab tests
Limitations and Common Exclusions
Short-term medical plans are not designed to cover every healthcare need. They often exclude:
- Pre-existing conditions
- Maternity and newborn care
- Routine preventive services
- Dental and vision care
- Mental health or substance abuse treatment
These plans are best used as temporary protection until more comprehensive coverage is available.
Who Should Consider a Short-Term Plan in Tennessee?
Short-term plans may be a good fit for:
- People between jobs or waiting for new employer coverage
- Healthy individuals needing only minimal, temporary protection
- Those who missed ACA Open Enrollment
- People awaiting Medicare eligibility or new coverage to begin
- Individuals who don’t qualify for ACA plan subsidies and need a lower-cost option
When a short-term plan may not be a good fit:
- You have preexisting or ongoing health conditions
- You need essential benefits such as maternity, prescriptions, or mental health care
Find more scenarios where short-term medical plans might be the right choice.
Pros and Cons of Short-Term Plans
Pros
- Lower monthly premiums
- Flexible enrollment year-round
- Works well as temporary coverage between major plans
Cons
- May deny applicants based on health
- No coverage for preexisting conditions
- Excludes essential health benefits
Types of Costs with Short-Term Plans in Tennessee
Typical costs you may see with a short-term health plan include:
- Premiums: Monthly payment to keep coverage active
- Deductibles: Amount you pay before your plan begins contributing
- Copayments: Fixed fees for services such as doctor visits
- Coinsurance: Your portion of costs after meeting the 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 helps cover expenses not included in primary health insurance, such as accident, critical illness, or hospital costs. It can serve as a helpful add-on to short-term or high-deductible health insurance.
Dental and Vision Insurance Plans
Dental and vision coverage supports overall health while reducing out-of-pocket costs for exams, cleanings, crowns, braces, glasses, and LASIK.
Health Care Sharing Ministry Programs
A faith-based plan lets members share healthcare expenses within a community. Though not insurance, these programs can provide affordable, values-based cost sharing.
Fixed Benefit Medical Insurance
Fixed Benefit medical insurance pays set amounts per service, giving predictable costs without deductibles. It works well as a supplement to short-term or private insurance.
Next Steps: Is a Short-Term Plan Right for You?
When deciding on a short-term plan in Tennessee, keep in mind:
- Compare short-term plan quotes with ACA Marketplace or employer-sponsored options
- Review details like deductibles, copays, and exclusions
- Assess whether the plan provides the benefits you’re most likely to need
If you’re ready to explore health insurance in Tennessee, licensed agents can help you compare plans and choose the best fit for your situation.
A friendly team of licensed insurance agents is here to guide you.
Thank you for your feedback!
Luna, LeAnn and Emily Pratt. “The Impact of TennCare.” Haslam.utk.edu (accessed May 25, 2020).
U.S. Internal Revenue Service, Department of the Treasury; Employee Benefits Security Administration, Department of Labor; Centers for Medicare & Medicaid Services, Department of Health and Human Services. “Short-Term, Limited-Duration Insurance.” Federal Register 83, No. 150 (August 3, 2018): 38212 (accessed May 25, 2020).
Claxton, Gary, Cynthia Cox, Anthony Damico, Larry Levitt, and Karen Pollitz. “Pre-Existing Condition Prevalence for Individuals and Families.” kff.org, October 4, 2019 (accessed May 26, 2020).
