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A lot of people around the country are questioning the status of their healthcare, reconfiguring plans, and taking matters into their own hands. With the scare of COVID-19, people want to invest in their health and know they are going to be safe, which is where healthcare comes into the question.

When it comes to distinguishing between short-term insurance and the Affordable Care Act (ACA), it can be confusing. Many articles online aren’t exactly straightforward, which is why you are reading this blog today. We’re going to make it as easy to understand as possible so you can select the insurance that is right for you and your family:

Short-Term Insurance vs. ACA

The most significant difference between short-term insurance and the ACA is that the ACA is public, or government-subsidized, and mandated. Short-term insurance is a type of private insurance offered by various carriers with varying coverage.


The ACA contains pre-approved healthcare providers that work within the confines of the government program. This includes the likes of Cigna, Humana, and Blue Cross Blue Shield. ACA policies are permanent health insurance policies that you can keep until age 65. These are great healthcare providers; however, if you are self-employed or make more than $40,000 per year, the premiums with these companies can bury you.

Short-Term Insurance

Short-term insurance plans can look similar to the medical plans you can receive through the ACA. The main difference is that they come with a deductible, copay, and out of pocket max, as well as a termination date. Both indemnity plans and short-term medical plans are types of private health insurance.

Typically, short-term private insurance plans are 12-months in length and are either terminated or re-renewed. You need to be vigilant about when they terminate, so you renew without going months without coverage.

Which One is Right for Me?

First, check with your primary care doctor about which insurance they accept. If they do not accept ACA insurance, you can continue shopping. Certain doctors choose to be within certain networks. Additionally, based on your healthcare requests, like the need for frequent CT scans, for example, you will want to pick a plan that supports your health to its fullest extent. Don’t forget to call an expert while navigating this process.

Looking for more information? Still need help deciding which course is right for you?

Talk to one of our broker’s today. They’ll give you advice you can trust.