Under current federal rules, short-term health insurance can last a maximum of 3 months (no longer than 4 months including any extension). This limit applies to new policies sold or issued on or after September 1, 2024. Before that date, short-term plans could last up to 364 days with renewals stretching to 36 months total. Your state may impose even stricter limits, and a few states ban these plans entirely.
The Current Federal Limit: 3 Months
A final rule published in the Federal Register in April 2024 shortened the maximum initial term for short-term health insurance to less than 4 months. In practice, that means most new policies max out at 3 months. The rule took effect for policies sold or issued on or after September 1, 2024.
The rule also closed a loophole known as “stacking,” where insurers sold consecutive short-term policies to the same person to effectively create year-round coverage. Under the new definition, any short-term policy sold by the same insurer (or an insurer in the same corporate family) to the same policyholder within a 12-month period counts as a renewal or extension. That means you can’t simply buy a new 3-month plan from the same company every few months to piece together continuous coverage.
What Changed From the Old Rules
Between 2018 and August 2024, federal rules allowed short-term plans with an initial term of up to 364 days. You could also renew or extend those plans for a total duration of up to 36 months. That made it possible to use short-term insurance as a near-substitute for a full health plan, sometimes for three years straight.
If you purchased a policy before September 1, 2024, the older rules still apply to that specific policy, including any renewals or extensions that were already built into the contract. So some people may still be on longer short-term plans that were locked in under the previous framework. New purchases, however, fall under the 3-month cap.
State Rules Can Be Stricter
Federal law sets the ceiling, but states can lower it. Several states had already restricted short-term plans well before the 2024 federal rule change. California, New Jersey, and Hawaii do not allow the sale of short-term health insurance at all. New Mexico also enacted policies that led to these plans being pulled from the market.
Other states impose their own duration caps that may be shorter than the federal maximum, limit the number of times you can renew, or add consumer protection requirements like mandatory benefit disclosures. Because the rules vary so widely, the maximum duration you can actually get depends on where you live. Checking with your state’s insurance department is the most reliable way to confirm what’s available.
What Short-Term Plans Don’t Cover
The duration limits exist partly because short-term plans are not comprehensive health insurance. They’re exempt from the Affordable Care Act’s core requirements, which means they can deny coverage for pre-existing conditions, set annual or lifetime benefit caps, and skip essential health benefits like maternity care, mental health treatment, or prescription drugs. Premiums are lower, but so is the protection.
These plans were originally designed for temporary gaps, like the few months between jobs or while waiting for employer coverage to start. The 2024 rule change was specifically intended to reinforce that purpose and prevent people from unknowingly relying on thin coverage as a long-term substitute for a marketplace or employer plan.
What Happens When Your Plan Expires
One important thing to know: short-term insurance expiring does not automatically qualify you for a special enrollment period on the ACA marketplace. The qualifying life events that trigger special enrollment include losing job-based coverage, losing Medicaid or CHIP eligibility, or aging off a parent’s plan at 26. Short-term plans are not listed among these triggers on HealthCare.gov.
That means if your short-term plan ends outside of the annual open enrollment window (typically November through mid-January), you could face a gap with no coverage options unless you qualify for Medicaid or experience a separate qualifying event. Planning your transition before the policy expires is important. If you know you’ll need coverage beyond 3 months, enrolling in a marketplace plan during open enrollment is generally the safer path.
Who Short-Term Insurance Works Best For
A 3-month short-term plan can still make sense in specific situations: you’re between jobs and your new employer’s benefits haven’t kicked in, you missed open enrollment and need something temporary, or you’re in a brief transition where going uninsured feels too risky. The coverage is limited, but it can protect against catastrophic costs like an emergency room visit or unexpected hospitalization during that window.
If you need coverage for longer than 3 months, a marketplace plan with income-based subsidies will almost always offer better protection. Many people qualify for plans with $0 or low monthly premiums depending on their income, and those plans cover pre-existing conditions, preventive care, and prescription drugs without the gaps that short-term insurance carries.