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What's the difference between short term plans and ACA plans?

If you're considering a short term plan or an ACA plan, here's a quick overview of how these two types of plans work.

Difference between short term plans and ACA plans
Short term health insurance plans	ACA Marketplace plans
Plan basics
Short term plans can help you get the benefits you need in times where you may have a gap in coverage — like when you're in between jobs or waiting for other coverage to start.	ACA plans are sold on the health care Marketplace (also called the Exchange). Depending on your income, you may be eligible for government subsidies to help lower the cost of an ACA plan.
Type and length of coverage
Short term plans offer limited coverage for a limited time.	ACA plans offer comprehensive coverage for a full calendar year as long as you pay your premium.
Consider a short-term plan if you:	Consider an ACA plan if you:
Missed open enrollment and don't qualify for a Special Enrollment Period (SEP) Have a gap until your ACA plan starts Want coverage until you join Medicare Turned 26 and are coming off a parent's plan Are in between jobs or waiting for benefits to start Are healthy and under 65	Can't get health insurance through work Need long-term coverage for you and your family Want comprehensive benefits Qualify for a premium tax credit

Learn more about short term plans vs ACA plans

Explore more health insurance options

Medicare

Plans for people 65 or older or those under 65 who may qualify because of a disability or special condition.

Medicaid

Plans that are low cost or no-cost or Dual Special Needs plans (D-SNP).

Employer group plans

Group health insurance options for employers to offer employees.

Disclaimers

The federal tax payment for not having minimum essential coverage no longer applies, but tax penalties may still exist at the state level. Consult your tax advisor for more information. Short term plans are medically underwritten. This coverage is not required to comply with certain federal market requirements for health insurance, principally those contained in the Affordable Care Act. Be sure to check your policy/certificate carefully to make sure you are aware of any exclusions or limitations regarding coverage of preexisting conditions or health benefits (such as hospitalization, emergency services, maternity care, preventive care, prescription drugs, and mental health and substance use disorder services). Your policy/certificate might also have lifetime and/or annual dollar limits on health benefits. If this coverage expires or you lose eligibility for this coverage, you might have to wait until an open enrollment period to get other health insurance coverage. This is not Minimum Essential coverage as defined in the Affordable Care Act and may not cover all Essential Health Benefits in your state. Some Short Term plans are available as association group insurance only to members of FACT, an independent association. Additional membership fees may be required.

Health ProtectorGuard plans provide limited benefits. This is a supplement to health insurance and is not a substitute for the minimum essential coverage required by the Affordable Care Act (ACA). Lack of major medical coverage (or other minimum essential coverage) may result in an additional payment with your taxes.