Short Term Health Insurance in Arizona: A Local Guide

What Is Short Term Health Insurance?

Short term health insurance, also known as temporary health insurance, is designed to provide limited medical coverage for a brief period-typically during gaps in traditional health insurance. These plans are not intended as long-term solutions but rather as a stopgap for those facing temporary loss of coverage or waiting for other insurance to begin.

• Typical Durations:
  As of September 1, 2024, Arizona short term health insurance plans are limited to an initial three-month term, with the option to renew for one additional month, totaling a maximum of four months of coverage. Previously, plans could last up to 364 days and be renewed for up to three years, but recent federal regulations have shortened these terms.

• Who It’s Best Suited For:
  Short term plans are ideal for people who are:

  • Between jobs

  • Waiting for employer-sponsored coverage to begin

  • Recent college graduates or students losing parental coverage

  • Self-employed individuals without group insurance

  • Early retirees not yet eligible for Medicare

  • Those who missed ACA open enrollment and do not qualify for a special enrollment period

Who Should Consider Short Term Health Plans in Arizona?

Short term health insurance is best for:

• Uninsured individuals who need immediate, temporary coverage

• Self-employed workers seeking affordable, short-term solutions

• College students or recent graduates in transition

• Those waiting for employer coverage or the next ACA open enrollment period

• People ineligible for Medicaid or ACA subsidies due to income or other factors

Short Term Health Insurance Laws in Arizona

• State-Specific Regulations:
  Arizona allows the sale of short term health insurance, but as of September 2024, plans are capped at three months with a possible one-month renewal (maximum four months total). This is a significant change from previous years, when coverage could last up to 364 days and be renewed for up to three years.

• Not ACA-Compliant:
  These plans do not have to meet Affordable Care Act (ACA) standards, so they may exclude essential benefits and pre-existing conditions.

• No Open Enrollment Restrictions:
  You can apply for short term health insurance at any time of year; there is no set enrollment window.

How Much Does Short Term Health Insurance Cost in Arizona?

• Average Monthly Premiums:
  Costs vary widely, but a 35-year-old in Arizona might pay between $69 and $311 per month for short term coverage, depending on plan features and deductibles.

• Cost Factors:

  • Age

  • ZIP code

  • Deductible and out-of-pocket maximums

  • Length of coverage

  • Plan benefits and exclusions

• Comparison With ACA Plans or COBRA:
  Short term plans are generally cheaper than ACA-compliant plans (which average $529/month for a 40-year-old at full price in Arizona). However, ACA plans offer comprehensive coverage and subsidies for those who qualify, while COBRA tends to be more expensive but maintains your prior group coverage.

What Does Short Term Health Insurance Cover?

• Common Inclusions:

  • Doctor visits

  • Urgent care

  • Emergency room visits

  • Hospitalization

  • Some plans may offer limited prescription drug coverage

• Common Exclusions:

  • Pre-existing conditions

  • Maternity care

  • Mental health and substance use treatment

  • Preventive services

  • Vision and dental care

• Not ACA-Compliant:
  These plans do not meet ACA minimum essential coverage requirements and may leave significant gaps in protection.

Top Short Term Health Insurance Providers in Arizona

Several insurers offer short term health insurance in Arizona, each with different plan options and pricing:

Major carriers like UnitedHealthcare, Pivot Health, National General, and others offer plans that can be compared for deductibles, coverage limits, and network access.

How to Apply for Short Term Health Insurance in Arizona

• Online Application:
  Most providers offer quick online applications with minimal health questions. Approval is often instant or within a day.

• Coverage Start:
  Coverage can begin as soon as the next day after approval.

• Local Assistance:
  Licensed Arizona agents and brokers can help you compare plans and complete the application process. Consider reaching out for personalized advice and quotes.

When Should You Enroll in a Short Term Health Plan?

• Year-Round Availability:
  You can enroll at any time-there is no open enrollment period for short term health insurance.

• Ideal Times to Enroll:

  • Between jobs or after a layoff

  • Waiting for employer coverage to begin

  • Outside ACA open enrollment and not eligible for a special enrollment period

  • Waiting for Medicare eligibility

Short Term Health Insurance vs. ACA Plans in Arizona

Pros of Short Term Plans:

• Affordable, fast coverage for healthy individuals in transition

• Flexible enrollment and start dates

Cons:

• Does not cover pre-existing conditions or many essential benefits

• Not a substitute for long-term health insurance; risk of being underinsured.

In summary:
Short term health insurance in Arizona offers a flexible, affordable option for those needing temporary coverage. However, it comes with significant limitations and is not a replacement for comprehensive, ACA-compliant health insurance. Always review plan details carefully and consider your health needs before enrolling. For local assistance, consult with a licensed Arizona insurance agent or broker.