Is short-term medical insurance the same as individual health insurance?

No, there are differences between short-term medical insurance and permanent individual insurance, also known as major medical health insurance. Short-term medical 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 medical 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.