Availability of short-term health insurance in Louisiana

Yes. As of 2024, there were at least six insurers offering short-term health insurance in Louisiana.

Louisiana’s regulations (Title 22) allow short-term plans in the state to follow current federal guidelines. The federal regulations that were finalized in 2018 allow short-term plans to have initial terms of up to 364 days, and total duration, including renewals, of 36 months.

However, federal duration limits will change in 2024 under new Biden administration rules for short-term health plans. Short-term plans issued or sold on or after Sept. 1, 2024 will be limited to initial terms of no more than three months and total durations of no more than four months, including renewals.

Louisiana does not limit or prohibit renewals or subsequent purchases of additional short-term coverage, so people can purchase a new plan when their short-term coverage expires (assuming the existing plan is not eligible for renewal), as long as they can pass the medical underwriting for a new policy. This will continue to be the case after the new federal rules take effect in September 2024, but with the caveat that the total duration can’t exceed four months.

Insurers that offer short-term health insurance in Louisiana can choose to offer plans with the maximum allowable durations, or to offer plans with shorter terms that may or may not be renewable.

Short-term health insurance in Louisiana can be purchased by applicants who can meet the underwriting guidelines the insurers use.

Most short-term health plans can be purchased by people who are younger than 65 and who don’t have any of the short list of medical conditions that will result in a declined application.¹ But the specific requirements vary from one insurance company to another.

Short-term health insurance plans usually include blanket exclusions for pre-existing conditions, and they often use post-claims underwriting (meaning that they will go back through a person’s medical records after a claim is filed, to make sure it isn’t related to a pre-existing medical condition).²

Short-term health plans also generally exclude coverage for some of the ACA’s essential health benefits (most commonly, maternity care, prescription drugs, and mental health care),¹ and impose dollar limits on the coverage they do provide. It’s important to double-check all of the plan information before purchasing a short-term policy, to make sure that you understand the limitations of the plan.

If you need health insurance in Louisiana, you’ll first want to determine whether you’re eligible to enroll in an ACA-compliant major medical plan (Obamacare), and whether you’d qualify for a premium subsidy through the Louisiana health insurance Marketplace/exchange.

If you’re eligible for a subsidy, the monthly premiums for an ACA-compliant plan may be much less costly than you were expecting, and even more affordable than the premiums for short-term plans. Most applicants can enroll in coverage that costs less than $10/month through the exchange. And 97% of the people who enrolled in 2024 plans through the Louisiana Marketplace were eligible for premium subsidies.³

Open enrollment for these policies runs from November 1 to January 15 each year. Outside that window, you may still be able to enroll if you experience a qualifying life event that triggers a special enrollment period (note that some special enrollment periods — including one for low-income applicants — don’t require a specific qualifying life event.

Your medical history will not hinder your eligibility for these plans, but you can only purchase an ACA-compliant plan — via the Marketplace or directly from an insurer — during open enrollment or a special enrollment period.

ACA-compliant plans are purchased on a month-to-month basis, so you can enroll in one even if you’ll need it for only a few months before another policy takes effect. So for example, if you know that you’ll be enrolled in Medicare or a plan offered by a new employer within a few months, you can still sign up for an ACA-compliant plan (during open enrollment or a special enrollment period) and then cancel it when your new coverage begins.

But if you can’t enroll in an ACA-compliant individual market plan or a plan offered by an employer, a short-term plan is a better option than remaining uninsured.

Excluding coverage for pre-existing conditions can make short-term policies appear more affordable than ACA-compliant policies. However, that upfront affordability can quickly be wiped out by out-of-pocket expenses (like deductibles and coinsurance) or any costs for a healthcare service for an uncovered condition, including any pre-existing medical condition. That said, there may be situations in which it makes sense to use a short-term plan, such as:

• If you missed open enrollment for ACA-compliant coverage and do not have a qualifying event that would trigger a special enrollment period.
• If you are newly employed and have a waiting period until you can be covered by your new employer’s health insurance plan; short-term insurance may provide a more affordable (but less comprehensive) stopgap than COBRA or an ACA-compliant plan.
• If you will soon be eligible for Medicare and don’t any any other coverage alternatives in the meantime.
• If you’re not eligible for Medicaid or a premium subsidy in the exchange, an ACA-compliant plan might be unaffordable.

Some examples of who are ineligible for premium subsidies:

• Those who earn too much to qualify for subsidies. This used to apply to anyone with a household income of more than 400% of the poverty level, but that cap has been eliminated through 2025.
• People who cannot enroll in a plan through the exchange because they are not legally present in the United States. Lawfully present immigrants can enroll, and can qualify for premium subsidies. But undocumented immigrants cannot enroll in a plan through the exchange at all (they can, however, enroll in ACA-compliant coverage outside the exchange, but there are no subsidies available outside the exchange).