Short-term medical insurance (STM) is a type of temporary health insurance coverage designed to bridge gaps in insurance for individuals in transition periods. These plans typically offer coverage for a limited duration, ranging from a few months to a year. STM plans are often chosen by people who are between jobs, waiting for employer-sponsored coverage to start, or students no longer covered by their parents' insurance.

While STM plans can provide essential medical coverage, they usually offer fewer benefits than comprehensive health insurance policies. They may cover emergency medical expenses, hospitalization, and doctor visits, but often exclude preventive care, mental health services, and pre-existing conditions. Premiums for short-term plans are generally lower than long-term health insurance, making them an affordable option for those needing temporary coverage.

It's essential for individuals considering short-term medical insurance to carefully read the policy terms and understand the limitations. Pre-existing conditions are typically not covered, and policyholders might face challenges renewing or extending the coverage once the initial term expires. Additionally, STM plans do not meet the requirements of the Affordable Care Act (ACA), so those with only short-term coverage may face penalties for not having ACA-compliant insurance.

Despite their limitations, short-term medical insurance plans provide a temporary solution for individuals seeking basic medical coverage during transitional periods. However, it's crucial for individuals to assess their healthcare needs and explore all available options to make an informed decision about their insurance coverage.