No, there are differences between short-term insurance and permanent individual insurance, also known as major medical health insurance. Short-term health insurance does not offer essential health benefits as required by the Affordable Care Act (ACA). However, in most states, you no longer are at risk of paying a tax penalty if you don’t carry ACA coverage. Short-term health insurance is typically more economical than major medical health insurance and allows individuals to see any doctor or hospital they choose without worrying about in-network vs. out-of-network physicians and facilities that are standard with individual health insurance plans. Some short-term medical plans do have a PPO network, so it’s important to carefully review the benefit details of policies you are interested in to compare.
Updated on May 9, 2023
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