Short Term Plans Law and Legal Definition

Short term plans also called short-term health insurance plans are insurance plans that offer coverage for a short time period and offer protection against unexpected health care expenses. They are similar to individual and family health insurance plans. The coverage period in short term plans extend for not more than 6 months. Though short term plans offer a benefit package similar to standard health insurance plans, the benefits provided in short term plans are less comprehensive than those provided by a long-term health insurance plan. The beneficiary of a short term plan are mainly people who are between jobs, laid off, or in a job that doesn't offer health insurance benefits, or who need an alternative to expensive COBRA benefits, students who are no longer covered under their parents' health insurance, or those who are waiting for an employer group health insurance coverage to begin.