What characterizes a short-term health insurance plan?

A short-term health insurance plan is primarily characterized as a temporary insurance policy that is designed to provide coverage for a limited period of time. These plans are often chosen by individuals who may be in transition, such as those between jobs or waiting for other health insurance coverage to begin. They typically offer a safety net for unexpected medical expenses during these short periods.

Short-term plans generally do not provide comprehensive coverage, which distinguishes them from more traditional health insurance policies. They may exclude certain pre-existing conditions, limit the types of benefits offered, and might not fulfill the minimum essential coverage requirements set by the Affordable Care Act. Therefore, the focus on limited durations of coverage and sometimes limited benefits is crucial to understanding the nature of short-term health insurance policies.