Short Term health insurance is a plan that does not meet the minimum essential coverage requirements set forth by the Affordable Care Act (Obamacare) and could result in a tax penalty. These policies should only be used as a temporary form of insurance during an unexpected gap in coverage such as loss of a job or other qualifying life events, some of which may even trigger a special enrollment period.
There’s a reason why you may want to look into purchasing a short term health insurance plan – If you go for longer than 3 months without a healthcare plan in place, you will face tax penalties under Obamacare that are either:
2.5% of your total annual income
$695 (per person in your household) – whichever is higher.