Short-term limited duration plans

Also known as “junk insurance,” short-term plans are meant to fill a gap in an individual’s coverage due to an unexpected occurrence such as a gap in employment. Short-term plans typically have high deductibles, exclude coverage for people with pre-existing conditions and are not required to cover essential benefits like prescriptions or preventive services such as cancer screenings. Recent federal rule changes have extended the amount of time these plans can be offered, making them "appear" to be an annual medical plan.