The Ultimate State-By-State Guide to the Cheapest Short-Term Health Plans in 2025 (Save $300+/mo) -

If you’re between jobs, finishing school, waiting for employer coverage to kick in, or simply shopping for the cheapest possible monthly health-cost bridge — short-term health plans can look extremely tempting. In 2025 you can still find plans that cut premiums dramatically compared with ACA marketplace options — in some cases people shave $300 or more per month — but the landscape is patchworky: some states limit or ban these plans, federal rules and disclaimers apply, and coverage is nowhere near as comprehensive as marketplace insurance.

This guide walks you through:

What short-term plans are and what they don’t cover,
Where they’re allowed (and where they’re banned),
The cheapest carriers and how to shave $300+/mo responsibly,
A clear state-by-state comparison table of availability + recommended low-cost providers,
Real buying tips, caveats, and a short conclusion that helps you decide whether a short-term plan is right for you.

I used official agency guidance and recent industry reviews to build this resource so you can act confidently. For the full state availability list, see the state short-term availability resource. For official background on short-term, limited-duration insurance, see CMS’s short-term overview.

What is “short-term” health insurance? (and why it’s cheap)

Short-term, limited-duration insurance (STLDI) is designed to temporarily fill a coverage gap — for example, between jobs or while waiting for employer-sponsored coverage to begin. Unlike ACA marketplace plans, short-term plans:

Are sold year-round (no open enrollment required in most states).
Typically have lower monthly premiums because they:
- Exclude many essential benefits (maternity, mental health, prescription drug lists, preventive care in many cases),
- Allow underwriting or medical questionnaires in some protections-limited states (so people with preexisting conditions may be denied or charged more),
- Place caps on benefits and higher out-of-pocket limits.
Can be issued for short initial durations and (in states that allow it) sometimes renewed — though federal guidance has changed permissible durations. NAIC and CMS both describe STLDI as temporary, gap coverage rather than comprehensive insurance. (NAIC, Centers for Medicare & Medicaid Services)

Why cheap? Because insurers price them for healthy people willing to accept coverage limits. That’s the double-edge: low cost, less protection.

How cheap are we talking? Real savings vs. marketplace plans

For many healthy adults, short-term plan premiums can be 50–70% lower than a comparable ACA bronze/silver plan, depending on age, state, and underwriting. That’s where the “save $300+/mo” headline becomes realistic for some people (especially older individuals facing high marketplace premiums). One review of 2025 offerings highlights budget-focused short-term products as having the lowest premiums among short-term options. (Investopedia)
Important counterpoint: people who qualify for large marketplace subsidies (premium tax credits) may pay little to nothing on the ACA exchange — those shoppers can often get better financial protection via marketplace plans. See the section on subsidies below.

Big picture rule changes and 2025 policy context (short summary)

Federal and state rules have continued to tighten since 2018 after a period of broader availability. In 2024–2025 a number of states either banned short-term sales or made market conditions unfriendly, so availability varies state by state. HealthInsurance.org keeps a running availability guide and noted in 2025 that multiple states disallow short-term sales. (healthinsurance.org)
CMS and federal guidance emphasize that short-term plans are not a replacement for comprehensive marketplace coverage — they’re gap-fillers. Read CMS’s short-term explanation for official regulatory framing. (Centers for Medicare & Medicaid Services)

Who should consider short-term plans in 2025?

Short-term plans make the most sense if all of the following apply:

You are healthy (few or no ongoing medications, no complex chronic conditions).
You need temporary coverage (1–6 months) between known coverage events.
You understand and accept coverage gaps (e.g., limited or no preventive coverage, preexisting condition exclusions).
You cannot or do not qualify for sufficient marketplace subsidies that would make ACA plans cheaper for you.

If any of those doesn’t hold, you should strongly consider marketplace options or employer plans.

How to save $300+/month — the smart approach (step-by-step)

Check marketplace subsidies first. If you qualify for large premium tax credits, ACA plans might be far cheaper and provide better protection. Read recent marketplace enrollment guidance during open enrollment to see subsidy impacts for 2025. (Investopedia)
If subsidies are not available, compare short-term quotes from several reputable short-term insurers (PivotHealth, UnitedHealth One, National General, etc.) — Investopedia and other reviewers show PivotHealth often draws the lowest premiums in head-to-head comparisons. (Investopedia)
Confirm state availability and duration rules. Many states restrict or ban short-term plans; others cap renewals and total coverage length. Use an up-to-date state availability list before you buy. (healthinsurance.org)
Read the fine print: check exclusions, preexisting condition language, and maximum out-of-pocket limits (these can be catastrophic).
Use short-term for short windows only. Don’t rely on these for long-term care — they are legal and practical gap coverage, not comprehensive protection.

Quick myth-busting (short bullets)

Myth: “Short-term plans are always illegal.”
Fact: In many states they are allowed, but several states have bans or severe limits. Check your state. (healthinsurance.org)
Myth: “Short-term plans cover everything a marketplace plan covers.”
Fact: They typically exclude many essential health benefits and have much more limited coverage.
Myth: “You’ll always save $300.”
Fact: Savings vary by age, health, location, and subsidy eligibility. For some shoppers $300+ monthly savings is realistic; for others (especially those eligible for subsidies) marketplace plans are cheaper.

The short list: Cheapest short-term carriers and what they’re good for

PivotHealth — noted in 2025 reviews for low premiums and economy-focused short-term products (best for healthy shoppers who want rock-bottom monthly premiums). (Investopedia)
UnitedHealthcare / UnitedHealthOne — national carrier with wide distribution; good network options where available.
National General — underwrites several distributed short-term brands with competitive pricing in many states.
Allstate Health (short-term units) — available in many states and convenient for customers already with Allstate products.

These carriers’ availability changes by state, so quotes are essential.

Comparison table — key states, availability, typical max duration, and recommended low-cost option

Below is a compact comparison to help you quickly see whether short-term plans are an option where you live and which carriers are commonly cheapest or widely available. This is not a rate quote — it’s a practical cheat-sheet for your next step: getting quotes.

State	Short-term allowed in 2025?	Typical max initial duration / renewal rules (2025)	Common low-cost providers to quote	Typical monthly savings vs. unsubsidized marketplace (healthy adult estimate)
Alabama	Allowed	3–12 months (renewals vary)	PivotHealth, Allstate, National General	$150–$400
Arizona	Allowed	3–12 months	PivotHealth, UnitedHealthOne	$120–$350
California	Banned	Not allowed	N/A	N/A
Florida	Allowed	3–12 months	PivotHealth, Allstate	$150–$380
Georgia	Allowed	3–12 months	PivotHealth, National General	$130–$350
Illinois	Allowed	3–12 months	PivotHealth, UnitedHealthOne	$120–$320
Massachusetts	Banned	Not allowed	N/A	N/A
New York	Banned	Not allowed	N/A	N/A
North Carolina	Allowed	3–4 months (some limits)	PivotHealth, National General	$100–$300
Ohio	Allowed	3–4 months (limits may apply)	PivotHealth, UnitedHealthOne	$110–$320
Texas	Allowed	3–12 months	PivotHealth, Allstate	$140–$400
Washington	Banned or tightly restricted	Varies	N/A or limited	N/A

Notes:

Table is a practical snapshot from industry/state trackers in 2025 — availability and renewability are state-by-state and changeable; confirm your state before buying. For a full state list and the latest sell/banned status, check the state short-term availability list. (healthinsurance.org)
“Typical monthly savings” is an estimate for a healthy non-smoker adult comparing short-term quotes to unsubsidized marketplace premiums; if you qualify for ACA subsidies your actual marketplace cost could be much lower. See the marketplace subsidy guidance in the next section. (Investopedia)

State differences explained (short bullets — what varies and why)

Legal status — some states ban short-term plans outright (e.g., California, Massachusetts, New York); others allow them but restrict duration or renewals. (healthinsurance.org)
Duration limits — states set max initial durations and renewal rules (e.g., some cap total continuous STLDI coverage to 3 months, others allow renewals up to a year where carriers offer renewals).
Underwriting rules — some states require simplified issue; others allow medical questionnaires affecting pricing and access.
Network and insurer offerings — not all carriers operate in every state; even if a product is legal, insurers may choose not to sell it there.

Marketplace subsidies — why they might beat short-term plans (don’t skip this)

For 2025, federal premium tax credits and a variety of state-level subsidies continued to make ACA plans affordable for many buyers. In fact, recent reporting shows that a large share of marketplace customers can pay $10 a month or less after subsidies (depending on household income and family size). If you’re eligible for these credits, you often get better coverage for less money than a short-term plan. Always check marketplace prices and subsidy eligibility before choosing short-term coverage. (Investopedia)

Real-world examples: when short-term saved people $300+/mo

A few common scenarios where short-term plans produce $300+ monthly savings:

A healthy 45-year-old in a high-cost state who does not qualify for marketplace subsidies. Short-term quotes (PivotHealth style) can be several hundred dollars cheaper than an unsubsidized marketplace silver plan.
Young single adult paying full ACA premium (no subsidies) who needs coverage for 3 months between jobs — short-term monthly premiums can be a fraction of marketplace premiums.

Important: these cases assume the person is healthy and accepts limited benefits. If someone needs medications, mental health services, or maternity care, the short-term plan could leave them with large unexpected bills.

(Reference: comparative short-term reviews and quotes in 2025 that highlight PivotHealth’s low premium economy tier.) (Investopedia)

What to watch for in the policy wording (must-check items)

When you get a short-term quote, check:

Preexisting condition language — does the plan exclude conditions diagnosed or treated in the last X months?
Prescription drug coverage — is there a formulary? are maintenance meds covered?
Maternity & mental health — usually excluded; verify.
Preventive care — often not covered (no free annual checkups).
Maximum benefit caps — the insurer might cap payments per hospital stay or lifetime for some services.
Out-of-pocket maximum (MOOP) — know the max you’ll pay before the plan stops paying — many short-term MOOPs are very high.
Renewal/extension rules — can you renew for another term or is it single-term only?
Provider networks — is it an HMO, PPO, or limited provider list?

Step-by-step script for getting the best short-term quote (copy/paste)

Gather your info: age, zip code, tobacco status, basic medical history (major conditions, medications).
Go to two national short-term quote sites (PivotHealth, UnitedHealthOne/National General aggregator) and get quotes.
Compare: monthly premium, MOOP, exclusions, prescription coverage, provider network.
Compare to marketplace: run a HealthCare.gov or state exchange quote for the same zip to check subsidy eligibility. (If you qualify for subsidies, the marketplace may win.) (HealthCare.gov)
If short-term is cheaper and you accept the limits, buy the policy for the minimal necessary term. Keep proof of enrollment in case you need to show coverage for an employer.

Short-term plan buying checklist (printable)

Confirm short-term plans are allowed in your state. (healthinsurance.org)
Compare at least 3 short-term quotes.
Get marketplace quote to confirm subsidy status. (HealthCare.gov)
Read exclusions and preexisting condition language.
Check MOOP and hospitalization caps.
Confirm start date (coverage typically begins after first premium paid).
Keep documentation of coverage and cancellation policy.

Frequently asked questions

Q: Are short-term plans the same as catastrophic plans?
A: No. Catastrophic marketplace plans are ACA plans designed for young adults and have different benefit structures and protections.

Q: Will buying a short-term plan prevent me from getting marketplace coverage later?
A: No — you can enroll in a marketplace plan during open enrollment or a qualifying event. But check rules in your state about how switching plans works.

Q: Do short-term plans cover COVID or pandemics?
A: Coverage depends on the plan; many short-term plans cover urgent care and hospitalization but may have exclusions. Check the policy wording.

Conclusion — when to use short-term plans (in a sentence)

Use a short-term plan when you need a temporary, inexpensive bridge and you’re healthy and willing to accept coverage gaps — but always compare marketplace subsidies first, read the policy fine print, and confirm your state’s rules. The right approach saves real money (often $150–$400/mo for people who don’t qualify for subsidies), but the wrong approach can leave you exposed to large medical bills.

Two short, high-value resources (click these)

For the latest state-by-state availability rundown and which states limit or ban short-term sales, see the state short-term availability list. (healthinsurance.org)
For official CMS guidance on short-term, limited-duration insurance and federal perspective on gaps vs. marketplace coverage, see the CMS short-term overview. (Centers for Medicare & Medicaid Services)

Sources & the five most important citations (quick list)

State availability and which states ban short-term plans in 2025 — HealthInsurance.org. (healthinsurance.org)
CMS explanation of STLDI (official federal background).
Low-premium short-term product reviews (PivotHealth noted for low premiums) — Investopedia 2025 review. (Investopedia)
Marketplace subsidy and open enrollment context for 2025 (how subsidies can make marketplace plans dramatically cheaper) — Investopedia reporting on 2025 open enrollment & subsidies. (Investopedia)
NAIC summary of short-term, limited-duration insurance (definition and consumer considerations). (NAIC)

Final notes (plain language)

I built this post as a practical decision guide you can publish with a short local tweak (insert state-specific quotes if you want to add local ZIP-level examples).
If you’d like, I can:
- Expand the state comparison table to include every state with carrier names and estimated starting monthly quotes (I’ll gather live quotes for each state and generate a downloadable table), or
- Create a short landing-page version that’s ultra-scannable and optimized for search (meta title, meta description, H1/H2 tags, and internal link suggestions).

Which follow-up would you like: (A) Full state-by-state quote table (requires me to pull live quotes), or (B) SEO landing page + meta tags for publishing?