The best short-term health insurance companies in Texas are National General Accident & Health and Everest Reinsurance Company, with scores of 95 and 85, respectively. However, the best health insurance for you will offer a combination of affordability and coverage specific to your needs.
Short-term medical insurance can protect you if you have gaps in coverage because you’re between jobs or waiting for open enrollment. Policies typically last less than a year but can often be extended. You can purchase short-term health insurance anytime and cancel it when your long-term insurance plan kicks in.
While often much cheaper, short-term health insurance is not a replacement for marketplace plans. If you need to save on insurance, applying for subsidies can help you get a marketplace plan with far better coverage at an affordable price.
Best Companies for Short-Term Health Insurance in Texas
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 Texas
The best overall short-term health insurance provider in Texas is National General Accident & Health, with a score of 95 out of 100. The second best is Everest Reinsurance Company, which scored 85 out of 100, followed by Companion Life Insurance Company, with 63 out of 100.
These companies have the lowest maximum out-of-pocket (MOOP) costs in Texas and offer various cost-sharing options. The top two company’s MOOPs are $7,500 and $7958, whereas the third-place company’s MOOP is $12,438. Everest Reinsurance Company offers the most plan options among the three.
National General Accident & Health
National General Accident & Health offers policies nationwide. It has numerous insurance products, including temporary health insurance, fixed-benefit medical insurance, accident, critical illness and Dental plans.
Texas residents can choose short-term health insurance policies that vary in term length, cost-sharing and prescription drug coverage, rendering this company relatively flexible. Application fees are typically low. However, National General Accident & Health only offers one type of short-term plan and has long waiting periods.
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You may be tempted not to get insurance while waiting for a new job or open enrollment to begin. However, if you don’t have temporary health insurance in Texas, you won’t be protected against exorbitant financial burdens should you run into a health emergency and need medical attention. Unplanned surgeries, for example, can cost tens of thousands of dollars without proper health insurance.
Best Cheap Short-Term Health Insurance
National General Accident & Health offers the cheapest short-term health insurance in Texas, with a MOOP of $7,500. Plans with the lowest monthly premiums usually have higher out-of-pocket costs.
Marketplace and employee-sponsored plans are usually the most affordable health insurance options. However, in addition to affordability, you also want to prioritize finding coverage adequate for your health care needs.
National General Accident & Health
MoneyGeek found that National General Accident & Health is the cheapest short-term health insurance provider in Texas. In addition to having the lowest average maximum out-of-pocket costs in Texas, this company offers the most worth-it high-end plans. It offers flexible policy lengths and various cost-sharing options. Most plans have low MOOPs and coinsurance but high coverage. In addition, the company covers generic prescription drugs and has a short waiting period, making it the best option for at-risk individuals.
Short-term health plans are not substitutes for marketplace or long-term plans. They offer temporary coverage against catastrophic expenses in the event of a health emergency. These plans only cover the essential health benefits, and many do not cover pre-existing conditions. In addition, if you develop an illness during short-term coverage, the company can choose not to renew your policy.
Best Short-Term Health Insurance Between Jobs
According to a 2020 Statista survey, 48% of Texans are covered through employer-sponsored health insurance. When you switch jobs, you might face a coverage gap. MoneyGeek looked at companies with cheaper-than-average monthly premiums and cost-sharing options to determine the best short-term health insurance providers for those between jobs.
The following companies offer the best temporary health insurance if you are unemployed:
- Companion Life Insurance Company: $161 per month
- Independence American Insurance Company: $191 per month
- Everest Reinsurance Company: $195 per month
Each of these companies offers average monthly health insurance premiums in the $160–200 range. Companion Life Insurance Company and Everest Reinsurance Company have the most plan options for splitting coverage costs.
Companion Life Insurance Company
Companion Life Insurance Company is based in Columbia, South Carolina and offers a variety of health insurance plans across the U.S., including Texas. It offers indemnity-structured insurance plans for small and large employers, short-term insurance plans and group supplemental expense plans.
Companion Life Insurance Company offers out-of-network coverage. Its short-term insurance plans have fairly low application fees and short waiting periods.
Extending short-term medical insurance makes sense when the start date of a new job gets pushed back or if open enrollment begins in a few months. However, continuously choosing short-term insurance over marketplace plans is not wise because short-term plans don’t provide essential health coverage. The marketplace offers Catastrophic, high-deductible and Bronze options that are affordable and provide essential health benefits.
How Does Short-Term Health Insurance Work in Texas?
Short-term health insurance provides coverage that bridges the lapse between long-term coverages, usually for a few months. In some states, like Texas, you can be on a plan for 364 days and renew for up to 36 months.
Note that short-term insurance plans don’t cover all injuries and illnesses or pre-existing and chronic conditions. In addition, you may be unable to lower your premiums or out-of-pocket costs through tax credits and cost-sharing reductions.
How to Buy Short-Term Health Insurance in Texas
MoneyGeek outlines the steps every buyer must follow when buying short-term health insurance in Texas.
Determine How Long You Need Coverage
- How long is the coverage needed?
- Short-term health insurance plans in Texas have a maximum duration of 364 days and can be renewed for up to 36 months.
Assess Your Health Care Needs
- Inquire whether plans offer coverage for your current prescriptions.
- Short-term plans are usually the best solution when you don’t have coverage and require immediate care. Look at your options and determine which plans offer coverage for your particular health care need.
- While some plans charge an application fee, others do not.
Health care network
- Check whether your preferred physician and health care facility are in the plan’s network.
Research Providers and Available Plans
Review companies and obtain details about coverage options
- Only buy insurance from licensed companies and agents, and review the insurer’s financial ratings and customer complaints.
Never purposely omit health care conditions when applying
- Always provide personal details and health care needs as accurately as possible. Never omit a health care condition on purpose, as this can be grounds for the company to cancel your coverage or refuse to pay claims.
The primary difference between short-term health insurance and a marketplace plan is the coverage. Short-term plans provide emergency coverage, whereas marketplace plans provide essential health benefits, preventive medicine and medical care for any pre-existing conditions.
You can enroll in a short-term plan anytime, whereas marketplace plans have a specific enrollment period. Individuals often get a short-term plan while they wait for the marketplace enrollment period to start.
Marketplace plans can last indefinitely. However, plan details and coverages often change every policy year. On the other hand, a short-term health plan lasts 12 months or less and can be renewed only up to 36 months.
FAQs About Short-Term Health Insurance in Texas
MoneyGeek guides Texas shoppers by answering these frequently asked questions about short-term health insurance.
About Brenna Kelly, Licensed Health Insurance Agent
- Health Insurance Org. "Texas Health Insurance Marketplace 2022 Guide." Accessed August 16, 2022.
- Texas Department of Insurance. "Alternative Health Plans." Accessed August 16, 2022.
- Texas Department of Insurance. "Health Care Coverage Guide." Accessed August 16, 2022.
- Statista. "Health Insurance Status Distribution of the Total Population of Texas in 2020." Accessed August 16, 2022.