What You Need to Know About Short-Term Health Insurance Rule Updates

On August 7, 2025, the U.S. Departments of Labor, Health and Human Services (HHS), and the Treasury released a statement regarding short-term, limited-duration health insurance plans. These policies are designed to give individuals flexible, temporary coverage and can be a helpful option when you need major medical insurance outside of traditional enrollment periods.

A Quick Recap of the 2024 Rule

In April 2024, new rules were introduced to redefine short-term health insurance and add more clarity about what these plans do and don’t cover. These rules limited how long temporary plans could last and ensured that consumers received transparent information when enrolling.

Unlike Affordable Care Act (ACA) plans, short-term policies are not required to include every ACA mandate. This flexibility is one of the reasons they can be a more affordable option for many people.

What This Means for You

Here’s the good news about short-term health insurance today:

• Coverage up to 364 days with renewal options available for up to 36 months.

• Flexibility to choose a plan that fits your budget and needs while still offering major medical protection.

• Alternative to ACA plans, giving you more choices for when you need coverage outside of open enrollment.

• State-specific options – since states can set their own guidelines, our team can answer questions about what’s available where you live.

While this is currently a “pause” in enforcement of some of the 2024 limitations, future updates are still expected. As always, we’ll keep you informed of any changes that may affect your coverage options.

Our Advice

Short-term health insurance can be a smart solution if you’re:

• Between jobs or waiting for new coverage to begin

• Looking for a lower-cost option while still having major medical protection

• Needing a temporary bridge plan outside of ACA enrollment periods

The best part is that you have the opportunity to get coverage quickly and for nearly a full year at a time, with renewals available. If you’re unsure which plan is right for you, our licensed agents are here to walk you through your options and help you choose the coverage that makes sense for your situation.

👉 Click here to contact us and schedule an appointment. We’ll make sure you feel confident and informed about your health insurance decision.