The 2025 Short-Term Health Insurance Shake-Up Here’s What You Need to Know
If you’ve ever felt stuck between losing coverage and finding a full-blown health plan, short-term health insurance probably sounded like a lifesaver. But until recently, most of these plans only lasted three months max, barely enough to bridge the gap between jobs, schools, or life events.
That just changed. On 7 August 2025, the U.S. Departments of Labor, HHS, and Treasury dropped a major update: in many states carriers can now offer short-term plans for up to 36 months, which is three full years of coverage. This is a game-changer for people who need flexibility, fast enrollment, and lower monthly premiums.
But here’s the catch: not every state is on board. Some are all-in, others are on the fence, and a few have banned these plans entirely. And with the feds hitting “pause” on strict enforcement for now, the short-term health insurance rules are shifting fast, which means you need to know your options.
What Is Short-Term Health Insurance? (And Why It’s Making a Comeback in 2025)
Short-term health insurance, also called short-term medical (STM) coverage, is exactly what it sounds like: temporary health insurance that covers you for a short period, typically 1 to 12 months, depending on your state.
Originally designed for life’s “in-between” moments, STM plans are a money-saver for:
- People between jobs
- Recent college grads
- Freelancers or gig workers without employer plans
- Folks waiting for ACA enrollment or new group coverage to kick in
These plans don’t follow all the rules of the Affordable Care Act (ACA) meaning no guaranteed essential health benefits, but they often include:
- Emergency room visits
- Hospital stays
- Doctor visits
- Prescription discounts
Because STM plans don’t have to follow full ACA rules, they can be far cheaper sometimes up to 60% less per month. That’s a no-brainer if you’re healthy and just need temporary protection.
Pro Tip from AHiX: STM plans may not cover pre-existing conditions or maternity care, so always compare before enrolling. You can do that easily with us Check Short Term Health Insurance Plans Now.
Why Are Short-Term Plans Trending Again?
Because the short-term health insurance rules just changed and now, you may now be able to stay covered for up to 3 years in certain states.
That’s not just temporary anymore; it’s a flexible, inexpensive alternative coverage option to qualified ACA plans.
2025 Federal Update | New Short-Term Health Insurance Rules
If you’re wondering why short-term health plans are suddenly all over the map again, here’s your answer: the federal government just shook things up.
On August 7, 2025, the U.S. Departments of Labor, Health and Human Services (HHS), and the Treasury announced a major shift in how they define and enforce short-term, limited-duration insurance (aka STM). This move could unlock new benefits for millions of Americans who need flexible, affordable coverage.
Let’s unpack what this means for you.
CMS Announcement: Plans Can Now Last Longer Than 3 Months
Before this update, most short-term plans could only run for 3 months, maybe 12 months in a few states. And if you wanted to extend coverage, you’d often have to reapply and go through the approval process again.
Now? The Centers for Medicare & Medicaid Services (CMS) has signaled that carriers can once again offer STM plans lasting up to 36 months, depending on your state.
In simple terms: If your state allows it, you could get a short-term plan that lasts 3 full years.
Why does that matter? Because it means more stability, less paperwork, and bigger cost savings, especially for healthy individuals who don’t need full ACA plans.
Federal Agencies Pause Enforcement of 2024 Rules
Here’s the part that’s quietly flying under the radar: the Departments aren’t enforcing the stricter 2024 rules at least not right now.
That means:
- Carriers won’t be penalized if their short-term plans don’t follow the latest definition to the letter
- The government is taking a wait-and-see approach as they review the rules through a formal process
- States have the freedom to use their own definitions for short-term plans
In other words, it’s a bit of a free pass at least temporarily. And that could make short-term coverage a better deal than ever, depending on where you live.
Executive Order 14219 and Its Impact on STLDI Rules
The real driver behind this change? Executive Order 14219, which calls on federal agencies to:
- Review rules that may burden small businesses or individuals
- Cut red tape that creates high costs with low public benefit
- Make health coverage more flexible and cost-efficient
This order pushed the Departments to reopen the conversation on what short-term plans should look like and while that process is happening, they’ve decided not to enforce the stricter version from 2024.
In short, the 2025 update is a coverage shake-up that puts the power back in your hands, and AHiX is here to help you make the most of it. See Your State’s Options →
State-by-State Guide to Short-Term Health Insurance Rules (2025)
Here’s where things get interesting and a little complicated.
After the recent CMS update and federal enforcement pause, states now hold the steering wheel on short-term health insurance rules. Some states allow up to 36 months of coverage, others limit plans to a few months, and a few don’t allow STM plans at all.
To make things super clear, we’ve broken it down by coverage length.
States That Allow 36-Month Short-Term Plans
If you live in one of these states, you’re in luck: you may be eligible for short-term plans that last up to three full years. This can be a huge money-saver and a convenient alternative to ACA plans especially if you’re self-employed, between jobs, or simply want a plan that fits your budget.
36-Month States:
Alabama, Arkansas, Arizona, Florida, Georgia, Iowa, Indiana, Kentucky, Louisiana, Missouri, Mississippi, North Carolina, Nebraska, Ohio, Oklahoma, South Carolina, Tennessee, Utah, West Virginia, Wyoming.
Allstate Short Term Health Insurance is widely available in many of these states. AHiX lets you compare Allstate with other carriers side by side Explore 36-Month Plans Now.
Why it matters:
- Great for long-term budget planning
- Avoids reapplying every 3 months
- Fast approval and nationwide provider networks
States Allowing 12-Month Plans
These states offer middle-ground flexibility and give you up to a full year of short-term coverage. That’s plenty of time to bridge the gap between life changes, with less stress around renewals.
12-Month States:
Kansas, Wisconsin, South Dakota.
Benefits:
- More coverage security than 3-month states
- Simple enrollment with flexible end dates
Looking for a 12-month short-term plan in Wisconsin or Kansas? AHiX can help you compare all top carriers!
States Limiting STM to 6 or 3 Months
If you’re in one of these states, coverage is possible, but shorter. Plans may only run for 3 or 6 months max, and you might need to reapply after that period ends.
6-Month States:
Idaho, Michigan, Nevada
3-Month States:
Montana, Texas, Virginia, Maryland, Oregon
Tips for residents in these states:
- Check your state’s renewal rules (some allow it, others don’t)
- Consider bundling multiple short-term policies (if allowed)
- Always review exclusions and caps carefully.
States Where STM Is Not Available
Some states have banned short-term medical plans altogether usually due to concerns about consumer protections or lack of ACA compliance.
No STM States:
Alaska, California, Colorado, Connecticut, District of Columbia, Delaware, Hawaii, Illinois, Massachusetts, Maine, Minnesota, North Dakota, New Hampshire, New Jersey, New Mexico, New York, Pennsylvania, Rhode Island, Vermont, Washington.
What to do instead:
- Explore ACA Marketplace plans many come with subsidies
- Consider limited-benefit plans or catastrophic coverage
- Work with a licensed agent to review all legal options
The big question on everyone’s mind is: “Is a Short-Term Health Plan worth considering in 2025?” Let’s dive into the possibilities and see what makes it a viable option!
Should You Consider a Short-Term Health Plan in 2025
So, the short term health insurance rules just got a facelift, but does that mean these plans are right for you?
The short answer: maybe. For some folks, STM plans are a total no-brainer, flexible, fast, and cost-effective. For others, they might fall short of what’s needed.
Let’s break it down.
Pros of Short-Term Plans
1. Lower Monthly Premiums
- Short-term plans are typically 30–50% cheaper than ACA plans.
- Ideal if you’re healthy and don’t need full coverage every month.
2. Quick Enrollment
- Most plans can start within 24 hours and don’t require long forms or waiting periods.
- Great for in-between jobs, life transitions, or waiting for open enrollment.
3. Pick What You Need
- Choose plans with ER visits, urgent care, or prescription discounts skip what you don’t need.
4. Now Lasting Up to 36 Months
- In many states, you can now lock in STM plans for up to 3 years.
- That’s a game-changer for people who want affordable, long-term protection.
Cons to Watch Out For
1. No Guaranteed Coverage for Pre-Existing Conditions
- STM plans are not ACA-compliant, so coverage can be denied based on your health history.
2. Limited Benefits
- Many short-term plans don’t cover things like maternity care, mental health, or prescription drugs.
3. No Subsidies
- If you qualify for a subsidy on the ACA Marketplace, that route might save you more in the long run.
4. May Not Meet Minimum Essential Coverage
- You could still face surprise bills or network gaps always read the fine print.
Note: STM plans work best for healthy individuals who want fast, affordable coverage without long-term commitment. But they’re not ideal if you have ongoing health needs or want all-inclusive care.
So… Is It Right for You?
Ask yourself:
- Are you between jobs or just graduated?
- Do you need coverage today and don’t want to wait for Open Enrollment?
- Are you healthy and just want protection “in case something happens”?
If you answered yes to any of those, a short-term plan might be your best bet for 2025.
Still confused? Talk to an AHiX Short-Term Coverage expert to see which plans are available in your state and how long they’ll last under the new 2025 rules.
Check Your Eligibility →
How to Choose the Right Short-Term Health Insurance Plan?
Finding a short-term health plan used to be simple – pick a cheap one and hope for the best. But with the new short term health insurance rules in 2025, there’s a lot more to think about.
The good news? You’ve got more options than ever. The flip side? Choosing the wrong plan could leave you unprotected when it matters most.
Let’s walk through the smart way to pick the right short-term plan, step by step.
Understand Your State’s Rules First
Every state has its own say in how long short-term plans can last, whether they’re renewable, and which benefits must be included. This means:
- You might get 36 months in Florida or Indiana
- But only 3 months in Texas or Montana
- And none at all in states like New York or California
Need help? AHiX makes it easy to check what’s allowed in your state, with a simple zip code search → Find Plans in Your State
Compare Carriers, Networks, and Benefits
Not all STM plans are built the same. Here’s what to compare:
1. Coverage Type
- ER visits, doctor visits, urgent care, prescription discounts, lab tests
- Some even offer telemedicine or mental health services
2. Network Access
- Make sure your doctor or hospital is in-network
- Some plans, like Golden Rule STM, have nationwide networks
3. Out-of-Pocket Costs
- Look beyond the monthly premium
- Check deductibles, co-pays, and maximums
4. Renewability
- Some plans are non-renewable after the term ends
- Others may allow “stacking” multiple 3-month plans but this varies by state
Still unsure? You’re not alone. Short-term insurance can be confusing, especially when federal and state rules are changing at the same time.
Find Affordable Short-Term Medical Plans Today
You’ve seen how the 2025 short term health insurance rules have opened the door to longer plans, looser federal enforcement, and more flexibility for consumers like you.
Whether you’re navigating a coverage gap, starting a new gig, or just want something affordable that gets the job done, short-term health insurance could be your ideal fit, especially with new rules allowing coverage for up to 36 months in many states.
But don’t go it alone.
AHiX Marketplace is your all-in-one platform to:
- Instantly compare STM plans side by side
- See what’s legal and available in your state
- Filter by price, benefits, duration, and providers
- Get unbiased help from licensed experts (no spam, no pressure)
Why Use AHiX for Short-Term Coverage?
- We work with top-rated STM carriers, including Golden Rule, Allstate, and Pivot.
- You get real-time pricing no hidden fees
- Our tools help you find state-compliant plans under current 2025 rules
- You can enroll online in minutes coverage could start as soon as tomorrow
Ready to take the next step?
Start your journey to affordable, flexible healthcare now.
Compare Short-Term Plans on AHiX Now
FAQs:
1. What are the new short-term health insurance rules in 2025?
In August 2025, federal agencies announced that carriers may offer short-term medical (STM) plans that last longer than three months. In some states, you can now get coverage for up to 36 months, depending on state law. Federal enforcement of stricter 2024 rules has been paused, giving states more flexibility.
Tip: Use AHiX Marketplace to check how long plans can last in your state under the new rules.
2. Can I get a short-term health plan that lasts 12 or 36 months?
Yes, depending on your state. As of 2025:
- 36-month coverage is available in states like Florida, Indiana, Missouri, Georgia, and Ohio.
- 12-month plans are allowed in Kansas, Wisconsin, and South Dakota.
- Other states limit STM plans to just 3 or 6 months, while some have banned them entirely.
Click here to check your state’s short-term coverage options on AHiX.
3. Is short-term health insurance the same as ACA insurance?
No, short-term health plans are not ACA-compliant. They don’t include all “essential health benefits” and may not cover pre-existing conditions. However, they are typically much cheaper and faster to enroll in making them a good temporary solution.
4. Is Golden Rule short term health insurance still available?
Yes. Golden Rule Insurance (a subsidiary of UnitedHealthcare) is one of the most popular short-term plan providers in many states. They offer:
- Nationwide provider access
- Flexible deductibles
- Coverage options from 1 month up to 36 months (where allowed by law)
Compare Golden Rule with other carriers instantly at AHiX Marketplace.
5. Can I renew or reapply for short-term insurance after it ends?
That depends on your state. Some allow you to reapply or “stack” plans back-to-back. Others require a break between plans or prohibit renewals altogether. Always check your state’s rules and the carrier’s policy language.
AHiX shows renewability info upfront so you can plan ahead with confidence.
6. What happens if I live in a state that banned short-term insurance?
If you live in states like California, Colorado, New York, or Illinois, short-term medical plans aren’t available. But don’t worry you may still qualify for:
- Subsidized ACA Marketplace plans
- Limited benefit or indemnity plans
- Medicaid or CHIP (if eligible)
Talk to an AHiX expert to explore the best legal options in your state Connect with a licensed advisor.
7. How fast can I enroll in a short-term health plan?
Most short-term plans offer instant online approval. In many cases, your coverage can start as soon as the next day.
8. Who should consider short-term medical insurance in 2025?
STM plans are best for people who:
- Are between jobs or waiting for employer coverage
- Missed ACA Open Enrollment
- Are healthy and want lower monthly costs
- Need fast, temporary coverage
If that sounds like you, it’s worth exploring your options with AHiX.
9. Are STM plans good for families or just individuals?
Many STM plans cover individuals, couples, and even entire families. That said, benefits vary by plan so always review details carefully. For families with ongoing care needs, ACA plans might be a better fit.
Use AHiX to compare short-term vs. ACA family coverage Start Here.
10. How do I find the best short-term health plan in my state?
It’s easy:
- Go to [AHiX Marketplace]
- Enter your zip code
- Filter by plan length, price, and features
- Compare top carriers including Golden Rule, Allstate, Pivot, and more
- Enroll online or talk to a licensed agent for help
