Short-term medical insurance provides temporary coverage to individuals with gaps in their long-term health insurance plan due to a missed enrollment deadline, job change or Medicare delay.
While short-term plans provide immediate health insurance coverage, they are not ACA-compliant and may exclude some vital healthcare benefits, as well as coverage for pre-existing conditions.
Based on MoneyGeek’s findings, the best overall short-term health insurance company in Michigan is National General Accident & Health, scoring 95 out of 100, followed by Independence American Insurance Company with a score of 70 out of 100. However, the best plan for every buyer will be different based on their budget and needs.
Note that short-term medical insurance is not a permanent replacement for a marketplace plan, which offers better coverage and subsidies that significantly lower costs.
Best Companies for Short-Term Health Insurance in Michigan
To determine the best short-term health insurance companies, MoneyGeek analyzed the pricing, plan options and cost-sharing choices for thousands of plans. Within each state, plans were aggregated by company to compile an overview of a short-term health insurance provider. In determining the best short-term providers for specific categories, weights were redistributed to take into account the goal of the health insurance plan.
Please be advised that the costs provided are averages. Actual rates will vary based on consumer profile and location.
Best Overall Short-Term Health Insurance in Michigan
MoneyGeek found that the following providers offer the best short-term medical insurance companies in Michigan:
- National General Accident & Health: 95 out of 100
- Independence American Insurance Company: 70 out of 100
- UnitedHealthcare: 55 out of 100
We based the ranking on each provider’s cost-sharing options and average out-of-pocket maximum limit. While National General Accident & Health and Independence American Insurance Company had a lower average maximum out-of-pocket (MOOP) cost of $7,500 and $7,750, respectively, UnitedHealthcare had a significantly high MOOP of $11,833.
National General Accident & Health
National General Accident & Health offers short-term medical insurance plans with the lowest MOOP for Michigan residents. Because of its low MOOP, it received MoneyGeek’s top ranking for best overall provider in the state, scoring 95 out of 100. Aside from short-term plans, the insurer has been selling other insurance products for over 75 years, including fixed-benefit, critical illness and accident, dental plans and Medicare.
National General Accident & Health offers an average number of plans in comparison to its competitors in the industry. Its plans include out-of-network coverage, with varying terms of up to three years. Notably, plans feature generic prescription drug coverage and a low coinsurance amount. However, these plans also feature longer waiting periods.
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While you may be tempted to remain uninsured after your primary healthcare plan lapses, MoneyGeek strongly advises against this. A short-term plan may not offer the most extensive coverage, but it can protect you from high costs associated with accidents and other medical emergencies. Without insurance, for example, you may end up paying tens of thousands of dollars should you need an unplanned surgery.
Best Cheap Short-Term Health Insurance
MoneyGeek’s top pick for the cheapest short-term health insurance provider in Michigan is National General Accident & Health, with an average maximum out-of-pocket cost of $7,500.
Michigan residents on a budget will benefit from the company’s low premium plans, although these feature higher out-of-pocket costs. Aside from considering short-term health insurance costs, ensure that your chosen plan offers adequate coverage for your needs.
National General Accident & Health
According to MoneyGeek’s review, the most affordable short-term medical insurance in Michigan comes from National General Accident & Health, which offers various PPO-type plans to its customers. Available in most states through over 49,000 brokers and agents, the company also offers lower MOOP limits on some plans, plus reduced application fees and coinsurance. However, some plans feature extremely high MOOP limits and deductibles.
Before buying a temporary health insurance plan, you need to understand that it’s intended to bridge the gap between long-term or marketplace plans, not substitute for them.
Short-term plans do not meet marketplace requirements and may not provide coverage for pre-existing illness. If you develop a health condition while on temporary coverage, your marketplace or long-term policy may not get renewed.
Best Short-Term Health Insurance Between Jobs
While shopping for short-term health insurance for one month, you should consider the monthly cost and cost-sharing options. Temporary medical insurance plans with lower premiums feature high MOOPs but are the best if you anticipate needing more medical care.
MoneyGeek determined the top insurance providers in Michigan for unemployed individuals based on monthly premiums and cost-sharing options. Our findings show that the following companies in Michigan off the best short-term health insurance between jobs:
- Companion Life Insurance Company: $125 per month
- UnitedHealthcare: $143 per month
- Independence American Insurance Company: $160 per month
Companion Life Insurance offers the lowest premium and the highest number of plan options, while Independence American Insurance Company features the highest premium and the least number of plan options.
Companion Life Insurance Company
Established in 1971, Companion Life Insurance Company provides a wide array of insurance products, including short-term, limited benefit, group supplemental expense and employer group waiver plans.
The insurer offers affordable short-term health insurance to unemployed individuals featuring out-of-network coverage, shorter waiting periods and considerably lower application fees. You may also access generic prescription drug coverage through some plans. However, the company features fewer term length and out-of-pocket cost options. Its policies also have high maximum out-of-pocket limits and longer waiting periods for cancer patients.
You may be able to extend your temporary health insurance in Michigan if the open enrollment period is soon or the start date of your new job changes. Unless absolutely necessary, we strongly advise choosing short-term medical insurance over marketplace plans. If cost is an issue, you may consider bronze, catastrophic or high-deductible plans, which are cheaper and offer all the vital medical benefits.
How Does Short-Term Health Insurance Work in Michigan?
Short-term medical insurance lasts only a few months and bridges the gap between long-term health insurance plans. Note that it only provides temporary coverage and should not be used for long-term purposes.
Some states allow residents to stay on short-term health insurance for more than a year. However, this rule does not apply in Michigan, since residents can only have a plan from the same insurer with no renewal for a maximum of 185 days in a year.
How to Buy Short-Term Health Insurance in Michigan
While shopping for short-term health insurance may seem daunting, MoneyGeek provided the following steps so that you can easily find the best short-term medical insurance plan in Michigan.
Determine How Long You Need Coverage
Most short-term health insurance policies last from a few weeks to a year. Before purchasing a policy, determine the length of your short-term coverage and figure out when you can apply for long-term coverage, as this will ensure there are no gaps in your health insurance coverage.
Assess Your Health Care Needs
Short-term health insurance plans may lack core health benefits, such as coverage for pre-existing conditions. While comparing health insurance plans, you should check that your choice will cover your current prescriptions and care. Review any associated costs, including premiums and application fees, before purchasing a plan.
Research Providers and Available Plans
Different health insurance companies provide different plan options, costs and benefits. Comparing options across providers can help you determine the best policy for your budget and requirements. Some features to consider include the plan types, term lengths, cost-sharing options and deductibles, among others.
Temporary health insurance plans vary significantly from marketplace plans. Comparing short-term health insurance vs. ACA-approved plans can help determine the best option for your current healthcare needs.
Short-term health insurance plans span a shorter duration, typically a few months to one year, and lack crucial health benefits, including coverage for pre-existing illnesses. Meanwhile, marketplace plans span years and include the most essential benefits, like coverage for pre-existing conditions.
Short-term medical insurance covers accidents and other emergencies, and you may purchase a policy at any time, depending on your needs. The opposite is true for marketplace plans, which are only available during a specific enrollment period.
FAQs About Short-Term Health Insurance in Michigan
MoneyGeek responded to the common questions about Michigan’s short-term health insurance to help you secure the best option for your situation.
About Brenna Kelly
- National General Accident & Health. "National General Plans - Short Term Health Insurance Plans." Accessed August 15, 2022.
- National General Accident & Health. "Get Free Health Insurance Quotes Online Today." Accessed August 16, 2022.
- Compassion Life. "Accident and Health Insurance Products." Accessed August 16, 2022.
- Michigan.gov. "Short-term Limited Duration FAQ." Accessed August 16, 2022.