COBRA vs. Short-Term Health Insurance

They are built for different jobs. COBRA continues your full employer plan, pre-existing conditions included, at up to 102 percent of its cost. Short-term medical is temporary coverage that may ask health questions, exclude conditions you already have, and cap what it pays. It may cost less because it covers less.

Reviewed by Prodest Insurance Group, a licensed insurance agency (NPN 19515569) · Updated 23 September 2026 against current federal guidance.

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Side by Side

	COBRA	Short-term medical
What it is	Your former employer's group plan, continued	Temporary coverage designed to bridge a gap
Health questions	None. Your health cannot change the price or the terms	May be asked, and may lead to a decline
Pre-existing conditions	Covered as before	May be excluded
Essential health benefits	The same benefits you had at work	Not required. Maternity, mental health, and prescriptions may be limited or absent
Benefit caps	The same limits as your employer plan	Permitted, per condition and overall
When you can enroll	60 days from the later of coverage ending or receiving your election notice	Typically year-round
How long it lasts	18 months for job loss or reduced hours; up to 36 months for other events	Limited, and dependent on state law
When it ends	Running out opens a 60-day Marketplace window	Ending does not open a Special Enrollment Period

The price difference is real, and so is the coverage difference. A short-term plan is not required to cover the ten essential health benefits, and it does not count as minimum essential coverage.

The Timing Trap

Short-term coverage is available year-round, which is part of its appeal. But ending it does not open a Special Enrollment Period. If you choose short-term instead of COBRA or a Marketplace plan and let the 60-day window after losing job-based coverage pass, you would generally wait for Open Enrollment to get comprehensive coverage again.

Before choosing short-term, check the other routes. Losing job-based coverage opens a Special Enrollment Period, and a Marketplace plan may cost less than expected once a tax credit is applied. And for a short gap, remember that COBRA is retroactive: you have 60 days to elect, and coverage goes back to the day your old plan ended. How retroactive COBRA coverage works →

How Long Short-Term Can Last Is Unsettled

Federal rules finalized in 2024 limited short-term plans to an initial term of no more than 3 months, and 4 months including renewals. In August 2025 the Departments of Labor, Health and Human Services, and the Treasury said they intend to undertake new rulemaking and do not intend to prioritize enforcement of the 2024 definition in the meantime.

The practical effect is that how long a short-term plan can run, and whether it is available at all, now depends heavily on your state. Some states restrict these plans tightly, and others prohibit them. Do not rely on a duration quoted anywhere, including here, without checking what applies where you live. Short-term medical, explained →

Which Tends to Fit

COBRA tends to fit when you have a condition that needs ongoing care, take regular prescriptions, are pregnant or planning to be, or are in the middle of treatment with doctors you do not want to change.

Short-term may fit when you have a known gap of a few weeks or months, such as a new job whose benefits begin on a date you already know, and you are healthy with no ongoing treatment or prescriptions.

Before You Choose Short-Term

Note the end of your 60-day window and check whether a Marketplace plan with a tax credit would cost less.
Read the exclusions before the benefits. That is where the answer usually is.
Check how pre-existing conditions are defined and handled. Definitions vary and can be broader than you expect.
Check whether prescriptions are covered at all, and whether there is an overall benefit cap.
Confirm what your state allows. Availability and maximum duration differ significantly.
Speak with a licensed agent if the deadline is close. There is no cost.

What to do when you lose coverage, step by step →

Not sure which bridge fits your gap?

A licensed agent can check your dates and compare COBRA, Marketplace, and short-term options in a few minutes, at no cost.

This page is general information, not advice about your specific situation. Your plan documents and the Marketplace determine what applies to you. A licensed agent can review your circumstances with you.

Common Questions

Is short-term health insurance cheaper than COBRA?

Often, because it covers less. It may exclude pre-existing conditions, is not required to cover essential health benefits, and may cap what it pays.

Does short-term insurance cover pre-existing conditions?

It may exclude them. COBRA covers them just as your employer plan did.

Can I get short-term insurance instead of COBRA?

Yes, typically year-round. But ending short-term coverage does not open a Special Enrollment Period, so if your 60-day window passes you would generally wait for Open Enrollment.

How long can a short-term plan last?

It currently depends heavily on state law. Federal rules are under review, and some states restrict or prohibit these plans.

Does short-term insurance count as minimum essential coverage?

No. It is a separate category with far fewer protections than major medical coverage.

Can I drop COBRA for a short-term plan later?

You can, but dropping COBRA voluntarily does not open a Marketplace window, and ending short-term coverage later does not either. You could be without comprehensive coverage until Open Enrollment.

Sources

The information on this page is drawn from the following federal sources. Your own plan documents govern your specific situation.

U.S. Department of Labor, FAQs on COBRA Continuation Health Coverage for Workers
U.S. Departments of Labor, Health and Human Services, and the Treasury, Statement Regarding Short-Term, Limited-Duration Insurance, 7 August 2025 (PDF)
Centers for Medicare & Medicaid Services, Short-Term, Limited-Duration Insurance and Independent, Noncoordinated Excepted Benefits Coverage Fact Sheet
U.S. Department of Labor, Short-Term, Limited-Duration Insurance
HealthCare.gov, Special Enrollment Period (glossary)

Find the right bridge

We are licensed to write short-term medical, Marketplace, and private plans, so a licensed agent can tell you plainly whether short-term, COBRA, or something else fits your gap. No cost, no obligation.