A survey by eHealth of 801 consumers who purchased short-term health plans listed the reasons why more people are choosing these plans, a decision that appears to be well-analyzed and thought out.
Curiously, the survey revealed that for people over 55, the cost of plans was the most important factor when deciding how many services they want covered. 70% of respondents in this age range said that the lower premium was the main reason why they had chosen this type of coverage. 
60% of people surveyed between 35 and 44, and 53% of those between 18 and 24, cited cost as the number one reason why they purchased these plans.
43% of respondents said that if short-term health plans weren’t available to them, they wouldn’t have any health coverage as they wouldn’t be able to afford the cost.
69% said that short-term health plans offer the health services they value the most.
The survey also found that:
- 27% of respondents said that they would like to have the short-term health plan for more than one year (this was previously the longest time permitted, but a new federal regulation has made it possible to renew them for longer periods of time).
- 64% of women surveyed said that they had considered purchasing coverage on the Obamacare Health Insurance Marketplace before choosing a short-term health plan.
- 40% of respondents said they were “very satisfied” with these plans; 51% said they were “satisfied.”
- While people over 55 want short-term health plans for longer periods of time, younger people aren’t afraid of short-term commitment (many view their health plan like a cell phone; they don’t want to be married to a plan forever).
What You Should Know About Short-Term Health Plans
Short-term health plans offer health insurance for a set period of time, usually with a much lower premium (what you pay per month for coverage) than what you would pay with traditional insurance.
These plans are not related to policies that are sold on the health insurance marketplaces established by the Affordable Care Act (ACA), also known as Obamacare.
In general, short-term health insurance offers a simplified benefit package that includes services a healthy person would need in case of an illness or accident, such as coverage for doctor visits, hospitalizations, x-rays and other treatment benefits.
You can enroll in a short-term health plan at any time in the year, without having to wait for the annual open enrollment period.
A healthy family can purchase short-term health insurance that would take effect the following day.
And any person residing in the country can purchase them, regardless of their immigration status. This is a major difference compared to Obamacare.
In the past, health coverage under short-term health plans could only last three months, but these plans can now be enrolled in for up to one year, with an extension option, depending on the state.
Unlike many traditional health plans, these policies do not limit their offering of doctors and specialists to a network of providers. Consumers can choose any doctor or health center they want to use for their appointments or procedures.
Some short-term health plans renew coverage automatically, while others make you reapply. There are limitations if a person has preexisting health conditions, but each case is different, so find the best plan that suits you.
The Obama administration established that short-term health plans should only be used for their original purpose: as a safety measure before you start another plan. They were not intended to be used as a substitute for traditional long-term coverage.
The Trump administration reversed the restrictions on these plans. Since October 2018, federal rules allow short-term plans to have an initial term of up to 364 days, and to be renewed as long as the total duration of a single plan does not exceed 36 months.
