Can I Get Short-Term Health Insurance in 2026?

Full answer: It depends on your state. Short-term health insurance is banned or effectively unavailable in 15 states and Washington, D.C. in 2026, while the other 35 states allow new policies under a federal rule capping initial terms at 3 months and total duration at 4 months, though enforcement of that cap has been paused since August 2025. These plans deny pre-existing conditions and skip ACA essential health benefits like maternity care and often prescription drugs.

Short-term health insurance sits in a regulatory gray zone in 2026: legal and widely sold in about 35 states, banned outright in 15 states and Washington, D.C., and governed by a federal duration rule that the current administration has said it will not enforce while it writes a replacement. That patchwork matters because a plan that costs $120 a month and takes effect the next day in Ohio may not be sold at all across the border in New Jersey, and the coverage itself looks nothing like an ACA marketplace plan, since insurers can deny claims tied to a pre-existing condition and skip benefits like maternity care.

This guide covers the 2026 federal duration rule and its current non-enforcement status, the full list of states where short-term plans cannot be sold, what these plans typically cover and exclude, realistic 2026 costs, and who should look at COBRA, an ACA marketplace plan, or Medicaid instead. For the ACA alternative, see does ACA cover pre-existing conditions and who qualifies for an ACA subsidy.

Coverage Breakdown

Coverage by type
Plan Type	Availability in 2026	Maximum Duration	Covers Pre-Existing Conditions?
Short-term plan (unrestricted states)	Sold in about 35 states	Federal rule caps new 2026 policies at a 3-month initial term and 4-month total duration, but many insurers still offer terms up to 364 days with renewals to 36 months while that cap goes unenforced	No
Short-term plan (banned/restricted states)	Not sold in 15 states plus D.C.	Not applicable; no licensed insurer offers new short-term policies	Not applicable
ACA marketplace plan	Sold in all 50 states plus D.C.	12-month plan year, January 1 to December 31, 2026	Yes, guaranteed issue
COBRA continuation coverage	Available nationwide if you had employer coverage	18 to 36 months depending on the qualifying event	Yes, same plan you had at work

The 2026 federal STLDI cap (3-month initial term, 4-month total duration) took effect for policies sold on or after September 1, 2024, but the U.S. Departments of Labor, Health and Human Services, and the Treasury announced on August 7, 2025 that they will not prioritize enforcement while a new rule is drafted, so many states have reverted in practice to the 2018 standard (364-day initial term, 36-month total with renewals).

Source: CMS STLDI Final Rule Fact Sheet 2024, U.S. DOL/HHS/Treasury Enforcement Statement (Aug 7, 2025), KFF Understanding Short-Term Limited Duration Health Insurance 2026

Direct Answer

It depends on your state. Short-term health insurance is banned or effectively unavailable in 15 states and Washington, D.C. in 2026, while the other 35 states allow new policies under a federal rule capping initial terms at 3 months and total duration at 4 months, though enforcement of that cap has been paused since August 2025. These plans deny pre-existing conditions and skip ACA essential health benefits like maternity care and often prescription drugs.

How the 2026 Federal Short-Term Insurance Rule Actually Works

Federal regulators set the outer limits for short-term, limited-duration insurance (STLDI), and states decide whether to allow it at all. A 2024 rule from the Centers for Medicare & Medicaid Services (CMS) caps new short-term policies sold on or after September 1, 2024 at a 3-month initial contract term with a maximum total duration of 4 months, including any renewal. Before that rule, a 2018 policy let insurers sell short-term plans with a 364-day initial term and renewals for up to 36 months total, and roughly 35 states still allow insurers to sell plans on that older, longer timeline.

The U.S. Departments of Labor, Health and Human Services, and the Treasury announced on August 7, 2025 that they will not prioritize enforcement of the 4-month cap while they draft a new rule, following a February 19, 2025 executive order directing agencies to review costly regulations. In practice, that means many insurers in 2026 are again offering short-term plans with terms closer to the 2018 standard (up to 364 days, renewable to 36 months) in states that permit it, even though the stricter 2024 rule is technically still on the books.

Which States Ban Short-Term Health Insurance in 2026

Fifteen jurisdictions do not allow insurers to sell new short-term health plans in 2026, either through an outright statutory ban or through rules strict enough that no carrier chooses to sell there. California, New York, and New Jersey were among the first to act, and several more states have followed as short-term plans drew scrutiny for denying pre-existing conditions.

Residents of these 15 jurisdictions who want lower-cost coverage between jobs or during a gap need to compare COBRA, an ACA marketplace plan, or, in Massachusetts, New Jersey, California, Rhode Island, and D.C., factor in a state individual mandate that can add a tax penalty for going uninsured, since short-term insurance does not qualify as minimum essential coverage that satisfies those mandates.

California (outright statutory ban since 2018)
Colorado (state rules make short-term plans effectively unavailable)
Connecticut (short-term plans not sold under state insurance rules)
Washington, D.C. (short-term plans barred under district rules)
Hawaii (short-term plans not sold under state insurance rules)
Illinois (short-term plans barred under state law)
Maine (short-term plans barred under state insurance rules)
Massachusetts (short-term plans barred; state also has its own individual mandate)
Minnesota (short-term plans barred under state insurance rules)
New Jersey (short-term plans barred; state also has its own individual mandate)
New Mexico (state rules limit plans to 3 months with no renewal, and no insurer currently sells them)
New York (outright statutory ban on short-term plans)
Rhode Island (state rules make short-term plans effectively unavailable; state also has its own individual mandate)
Vermont (short-term plans barred under state insurance rules)
Washington state (plans technically allowed up to 3 months, but no insurer currently offers them)

What Short-Term Plans Cover, and What They Exclude in 2026

Short-term health insurance is not required to meet the Affordable Care Act's essential health benefit standards, so coverage varies widely by insurer and state. A 2025 KFF analysis of short-term products sold by nine major insurers across 36 states found that only about half cover prescription drugs, roughly 60% cover mental health or substance use treatment, and virtually none cover maternity care.

Applicants answer a short medical questionnaire when they enroll, and coverage can start as soon as the next day if they qualify. Insurers use post-claims underwriting, meaning they can review medical records after a claim is filed and deny payment, or cancel the policy retroactively, if they find an undisclosed condition.

Pre-existing conditions: usually excluded entirely through the medical questionnaire and post-claims underwriting
Prescription drugs: covered by roughly half of 2026 plans, often with a low annual dollar cap
Mental health and substance use treatment: covered by roughly 60% of 2026 plans
Maternity and newborn care: almost never covered
Preventive care such as annual physicals and screenings: typically not covered, unlike ACA-compliant plans
Deductibles: range from about $500 to $25,000 in major cities, nearly 3 times higher than the highest ACA Bronze plan deductible, per the 2025 KFF analysis

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Cost of Short-Term Health Insurance Without ACA Subsidies in 2026

Monthly premiums for short-term plans commonly start under $100 and stay below $300 for most applicants in 2026, well below the sticker price of an unsubsidized ACA marketplace plan. That price gap has grown more attractive in 2026 because the enhanced ACA premium tax credits from 2021 expired on January 1, 2026, and KFF estimates that the roughly 22 million marketplace enrollees who received those credits will see their out-of-pocket premiums more than double on average this year.

The lower short-term premium comes with a trade-off: high deductibles, benefit exclusions, and no guarantee of renewal if you develop a costly condition. A healthy 30-year-old with no ongoing medical needs may save money short-term; someone managing a chronic condition, planning a pregnancy, or likely to need prescription drugs typically comes out ahead on an ACA-compliant plan even after paying full price, because ACA plans cap out-of-pocket costs and cannot deny claims for pre-existing conditions.

Who Cannot Get Short-Term Health Insurance in 2026

Residents of the 15 states and D.C. that ban or restrict short-term plans cannot buy a new policy no matter their health status, since no carrier is licensed to sell one there. Applicants with a significant pre-existing condition disclosed on the medical questionnaire, such as cancer, diabetes requiring insulin, or a recent hospitalization, are often declined outright or offered a policy that excludes the related condition.

Short-term insurance also is not built for people eligible for Medicare. If you qualify for Medicare Part A and Medicare Part B (Original Medicare) at 65, or you are already enrolled in a Medicare Advantage plan, short-term insurance is not a legal or practical substitute; insurers generally will not sell short-term coverage to someone who has or is eligible for Medicare. Medicare beneficiaries who want to fill gaps in Original Medicare should compare Medigap policies or a Medicare Advantage plan, and add Medicare Part D for prescription drug coverage, instead of shopping for short-term insurance.

How to Find a Short-Term Plan or Compare It to an ACA Plan in 2026

Start at HealthCare.gov before buying a short-term policy, even if you plan to go with short-term coverage, so you can see the real subsidized price of an ACA-compliant option side by side.

Step 1: Check whether your state allows short-term plans by calling your state Department of Insurance or checking the KFF state tracker.
Step 2: Compare at least one ACA marketplace quote at healthcare.gov/see-plans before buying short-term, since subsidies may make an ACA plan cheaper than you expect.
Step 3: Get quotes from 2 to 3 licensed short-term carriers or a broker, and read the exact coverage list, not just the premium.
Step 4: Ask directly whether the plan covers your specific prescriptions, ongoing conditions, or planned procedures before you pay.
Step 5: Confirm the exact initial term and renewal terms in writing, since these vary by state and insurer even under the same federal floor.

Alternatives if Your State Bans Short-Term Insurance

Residents of the 15 states and D.C. where short-term plans are not sold have several lower-cost paths that remain fully legal statewide in 2026.

COBRA continuation coverage: extends your former employer's group plan for 18 to 36 months if you had job-based coverage, at full premium cost plus up to a 2 percent administration fee, but it covers pre-existing conditions and essential health benefits since it is the same plan.
ACA marketplace catastrophic plan: available to people under 30 or with a hardship exemption, with premiums that can run close to short-term plan prices while still counting as ACA-compliant coverage.
ACA marketplace subsidized plan: even after the 2026 subsidy cliff, checking your exact premium tax credit at healthcare.gov/see-plans often beats the sticker price, especially for lower-income households.
Health care sharing ministry: not insurance and carries no guarantee of payment, but some residents in banned states use it as a lower-cost, non-regulated option; read the sharing guidelines carefully before relying on one.
State Medicaid or CHIP: if your income dropped, check whether you or your children now qualify for Medicaid or CHIP, which have no premium and no pre-existing condition exclusion.

Frequently Asked Questions

Is short-term health insurance legal in my state in 2026?

It depends on where you live. Short-term plans are banned or effectively unavailable in 15 states and Washington, D.C. as of 2026: California, Colorado, Connecticut, D.C., Hawaii, Illinois, Maine, Massachusetts, Minnesota, New Jersey, New Mexico, New York, Rhode Island, Vermont, and Washington state. The other 35 states allow insurers to sell short-term policies, subject to the federal duration rules.

How long can a short-term health plan last in 2026?

A 2024 federal rule technically caps new short-term policies at a 3-month initial term and 4-month total duration, but the Trump administration paused enforcement of that cap in August 2025. In practice, many states in 2026 still allow insurers to offer plans on the older 2018 standard: up to a 364-day initial term with renewals for a total of 36 months.

Does short-term health insurance cover pre-existing conditions?

No. Short-term plans are medically underwritten and routinely exclude coverage for any pre-existing condition you had before the policy started. Insurers also use post-claims underwriting, reviewing your medical records after you file a claim, and can deny payment or cancel the policy if they find an undisclosed condition. ACA marketplace plans, by contrast, must cover pre-existing conditions.

How much does short-term health insurance cost in 2026?

Monthly premiums commonly start under $100 and stay below $300 for most applicants in 2026, but deductibles run much higher, from about $500 to $25,000 in major cities according to a 2025 KFF analysis, nearly 3 times the highest ACA Bronze plan deductible. The low premium reflects limited benefits, not comprehensive coverage.

Can I use short-term insurance instead of an ACA marketplace plan?

You can, but it is rarely a full substitute. Short-term plans skip ACA essential health benefits like maternity care, and only about half cover prescription drugs. They work best as a temporary bridge of a few months between jobs or coverage gaps, not as a long-term replacement for ACA-compliant coverage, especially if you have an ongoing health condition.

What states ban short-term health insurance in 2026?

Fifteen jurisdictions do not allow the sale of new short-term health plans in 2026: California, Colorado, Connecticut, Washington D.C., Hawaii, Illinois, Maine, Massachusetts, Minnesota, New Jersey, New Mexico, New York, Rhode Island, Vermont, and Washington state. Some ban it outright by statute; others set rules strict enough that no insurer chooses to sell short-term policies there.

Will I owe a tax penalty for having only short-term insurance?

The federal individual mandate penalty is $0 nationwide, but Massachusetts, New Jersey, California, Rhode Island, and Washington, D.C. each have their own state individual mandate. Short-term insurance does not count as minimum essential coverage under those state mandates, so relying on it alone in one of those five places can trigger a state tax penalty.

What is the difference between short-term insurance and COBRA?

COBRA continues your exact former employer group plan, including pre-existing condition coverage and essential health benefits, for 18 to 36 months at full premium cost. Short-term insurance is a new, separately underwritten policy that excludes pre-existing conditions and often skips benefits like maternity and mental health care, but usually costs less per month than COBRA.