Does Short-Term Medical Insurance Cover Families?

Overview

When life changes faster than your health insurance can keep up—like switching jobs or missing Open Enrollment—short-term medical (STM) insurance may help fill the gap.

These non-ACA plans can start in as little as one day and last up to 12 months, offering flexible protection when you need coverage fast. But before enrolling, it’s important to understand what these policies do—and don’t—cover.

Flexible Coverage That Fills Temporary Gaps

Short-term medical (STM) insurance provides flexible, budget-friendly coverage for individuals or families who need health insurance outside traditional enrollment periods.

Families might consider these plans when they are:

• In between jobs or waiting for new employer coverage

• Self-employed without access to group benefits

• Missed ACA Open Enrollment and need immediate protection

STM plans typically last under 12 months and, in some states, can be renewed up to 36 months. While these policies help bridge gaps in coverage, they are not ACA-compliant and don’t include all essential health benefits.

To see how short-term policies are changing and which updates might impact you, check out the latest short-term medical insurance updates for 2025.

What’s typically covered:

• Doctor office visits

• Emergency room care and hospitalization

• Surgery and lab work

• Some prescription drug or telehealth options

What’s often excluded:

• Pre-existing conditions

• Maternity and mental health services

• Preventive and pediatric care

Family-Friendly Options: Add a Spouse or Children

STM plans make it easy to cover everyone under one policy—or just the people who need it most.

You can add your spouse and dependent children to a single policy, or select child-only coverage for minors who need standalone protection.
When adding multiple children, most insurers require that the youngest child be added first.

This flexibility makes STM coverage a practical choice for single parents, young families, and households in transition.

Fast Coverage Start and Year-Round Enrollment

Unlike ACA marketplace plans, STM coverage can start as soon as the next day after your application is approved.
There are no open enrollment periods, so you can apply any time of the year—ideal for families facing a sudden coverage gap or waiting for new benefits to kick in.

If you’re comparing options, it helps to understand how these policies differ from ACA offerings—read our guide on non-Marketplace vs. Marketplace health insurance plans.

Different Policy Types to Match Your Family’s Needs

Not all short-term medical plans are created equal. You can choose between basic, comprehensive, and supplemental-enhanced options depending on your coverage goals and budget.

Common policy types include:

• Basic plans: Lower premiums but higher deductibles and limited benefits.

• Comprehensive STM plans: Broader benefits that may include preventive care, prescriptions, or telehealth access.

• Add-on options: Many insurers offer accident, hospital indemnity, or dental coverage to complement your STM policy.

Plans also differ in network structure—some offer open-access PPOs, while others limit care to specific provider networks.

Budget-Friendly Premiums—But Know the Trade-Offs

STM plans are known for lower monthly premiums compared to ACA coverage, making them appealing to budget-conscious families. However, the trade-off is less protection.

Potential drawbacks include:

• Exclusions for pre-existing conditions and maternity care

• Higher out-of-pocket costs (deductibles, coinsurance, and copays)

• No ACA subsidy eligibility—meaning you’ll pay full price for coverage

Families should review each plan’s Summary of Benefits carefully to understand coverage caps, waiting periods, and any maximum payout limits.

For a deeper breakdown of how STM compares to ACA and private options, read our analysis of Marketplace vs. private health insurance plans.

Who Should Consider a Short-Term Plan

STM plans work best for families that are:

• Healthy and don’t qualify for ACA subsidies

• Between insurance transitions, such as waiting for new employer benefits

• Self-employed or freelancers needing immediate, flexible coverage

• Households seeking budget-friendly coverage for essential medical care

They are not ideal for families with chronic conditions, young children needing frequent preventive care, or expecting parents, as maternity and ongoing treatment are often not covered.

Top Short-Term Medical Insurance Providers

If you’re considering STM coverage, these A-rated carriers are among the most trusted for family health plans:

• Companion Life Insurance Company (Pivot Health) – Founded in 1971, Companion Life underwrites Pivot Health policies and offers open-access networks, telehealth, and nationwide coverage.

• Everest Reinsurance Company – In business for over 40 years; offers $1,000–$10,000 deductibles and $30–$50 copays.

• Independence American Insurance Company (The IHC Group) – Covers lab tests, ER visits, and hospital stays; offers family-friendly flexibility.

• National Health Insurance Company (National General) – Uses Aetna or Cigna PPO networks; includes generic drug and doctor visit coverage.

• UnitedHealthcare (Golden Rule Insurance Company) – Offers TriTerm Medical for up to three years and bundled accident/dental packages.

• Pan-American Life Insurance Company – Longstanding provider offering nationwide availability and simple enrollment.

If you want to compare carriers and benefits side by side, explore the best short-term health insurance companies in 2025.

Quick Comparison: STM vs. ACA Marketplace Plans

Alternative Health Plans to Explore

If STM coverage doesn’t meet your needs, consider these options:

• ACA Marketplace plans: Offer full essential benefits and subsidies. Check our ACA subsidy calculator to see if you and/or your family are eligible for tax credits to help lower your monthly premiums.

• Supplemental insurance: Add-ons like hospital indemnity, accident, or critical illness coverage can fill gaps.

• Faith-based sharing programs or fixed-benefit plans: May provide limited but flexible financial protection.

For broader context on short-term and ACA plan trends, check our short-term medical insurance updates for 2025.

Frequently Asked Questions (FAQ)

1. Does short-term medical insurance cover my whole family?

Yes. Most STM plans allow you to add your spouse and dependent children under one policy. If you’re enrolling multiple children, insurers often require that the youngest child be added first. Some carriers also offer child-only plans for minors who need individual coverage.

2. How long does short-term medical insurance last?

STM plans generally last under 12 months, and in some states, you can renew for up to 36 months. Always check your state’s rules, as duration limits and renewal terms can vary.

3. Can I get short-term medical coverage anytime?

Yes. You can apply for STM insurance year-round, unlike ACA Marketplace plans, which have specific Open Enrollment periods. Many short-term plans can start as soon as the next day after your application is approved.

4. What’s not covered by short-term medical plans?

STM policies often exclude pre-existing conditions, maternity care, mental health treatment, and preventive services. They’re meant for temporary coverage, not comprehensive long-term protection.

5. What’s the difference between short-term and Marketplace plans?

Short-term plans are non-ACA and may cover only a portion of essential benefits, whereas Marketplace plans are ACA-compliant, include all essential health benefits, and may qualify for income-based subsidies. Compare both before enrolling to ensure your family’s needs are covered.

Bottom Line

Short-term medical insurance can be a budget-friendly, flexible choice for families who need quick coverage outside ACA enrollment periods.
It’s not a long-term solution, but it can help you stay insured during transitions—like waiting for job-based benefits or finding your next Marketplace plan.

Before you apply, compare short-term and ACA plans side by side to understand your coverage needs, benefit limits, and total costs.