If you are between jobs, waiting for employer coverage, or missed Open Enrollment, you may have heard that you can buy a 12 month short term plan in Texas. The answer is “sort of,” and the details matter.
The four month limit
Texas follows the federal definition of short term medical insurance. That currently limits a policy to an initial term of three months, plus one renewal of up to one month with the same insurance company. In practice, one short term plan from one carrier can cover you for about four months.
How a 12 month option works
Some companies get around the single carrier limit by lining up policies from different insurers. Pivot Health, for example, sells three consecutive four month certificates from three different carriers, arranged so each one starts as the previous one ends. Together they can bridge a full year.
Before you rely on that, understand that each new certificate is a separate policy. Read how pre-existing conditions, deductibles and waiting periods carry over (or do not) from one certificate to the next.
What short term plans do not do
Short term medical is medically underwritten, which means the carrier can decline you or exclude a condition you already have. It is not ACA coverage, it is not minimum essential coverage, and it does not qualify for premium tax credits.
Check the Marketplace first
If your household income qualifies you for a Marketplace subsidy, an ACA plan is almost always the better buy, and a job loss usually gives you a Special Enrollment Period. Enter your ZIP on our individual health insurance page to see your options, read our Texas short term health insurance guide, or compare Allstate Health Solutions short term plans.
