If you've researched short term health insurance recently, you may have run into conflicting information. One source says these plans are capped at a few months; another says you can keep one for up to three years. Both can be true at the same time, and the reason is a federal rule that's currently on the books but not being enforced.
Short answer: A 2024 federal rule limits new short term, limited duration insurance (STLDI) to a 3-month initial term and 4 months maximum including renewals. But as of a tri-agency statement on August 7, 2025, the federal Departments announced they will not prioritize enforcement of that definition while they work on new rulemaking. The rule is still on the books, it was not withdrawn, only left unenforced, but with federal enforcement paused, your state's law is now the binding constraint on how long a short term plan can last.
What the rule says in plain English
Short term, limited duration insurance is temporary coverage designed to fill a gap, between jobs, after aging off a parent's plan, or while waiting for other coverage to start. It is not comprehensive insurance and is not minimum essential coverage.
In 2024, a federal final rule (89 FR 23338, effective September 1, 2024) tightened the federal definition of these plans. Under that rule, a new short term policy could run 3 months at most initially, and no more than 4 months total once any renewals were counted. The rule also required a federal consumer-disclosure notice on these plans.
That was the federal ceiling, until enforcement changed.
Why it isn't being enforced in 2026
On August 7, 2025, the Departments of Labor, Health and Human Services, and the Treasury issued a joint statement saying they will not prioritize enforcement of the 2024 STLDI definition, including its notice provision, while new rulemaking is developed. HHS also said it will not treat a state as failing to enforce federal standards if that state applies its own definition of short term coverage.
The practical result, as of July 2026: the federal 3-month/4-month cap is currently not being enforced, and state law sets the real limit on short term plan duration. New federal rulemaking is intended but has not yet been issued.
Two things are worth saying clearly:
- This is not a permanent change. The 2024 rule still exists and could be enforced again, or replaced with different rules.
- Where a state allows long duration short term plans and has no independent state cap of its own, that long duration currently rests on federal nonenforcement. If federal enforcement resumes, those durations could revert.
Why it matters to you
Because federal enforcement is paused, what you can actually buy depends almost entirely on where you live:
- In states with their own short term rules, the state law controls, some states cap these plans at roughly three months, some at 6 months to a year, and some allow renewals up to a longer total. A handful of states have effectively no short term market at all.
- In states with strict caps or bans, the federal pause changes nothing, you still can't buy a long duration short term plan there.
- In permissive states with no state backstop, plans advertised for up to about 36 months are available today, but that availability is federal-contingent and could change if the rule is enforced again.
If you're comparing a short term plan to a longer commitment, it's smart to understand not just today's rules but the fact that they could shift. A plan that fits a short gap is very different from one you're counting on for years.
A licensed agent compares your real options for your ZIP in plain English. No cost. No pressure.
Common misconceptions
- "The 3-month cap is gone for good." No. The rule was not canceled or removed, it remains a valid federal rule that simply isn't being prioritized for enforcement right now.
- "If it's federal, it must apply everywhere the same way." Not currently. With federal enforcement paused, the real limits vary state by state.
- "A 36-month short term plan is the same as comprehensive coverage." It isn't. Short term plans are limited, are not minimum essential coverage, and can exclude preexisting conditions no matter how long they last. The ACA marketplace and Medicaid are the comprehensive routes.
- "This will stay the same indefinitely." Maybe not. Because the rule is still on the books and new rulemaking is expected, the landscape can change.
Bottom line
The 2024 federal short term rule capped these plans at 3-4 months, but that cap is currently not being enforced following the August 7, 2025 tri-agency statement, so state law is what determines short term plan duration in 2026. The rule is still in force on paper and could be enforced again, which means long durations in states without their own limits are federal-contingent. Wherever you live, remember that a short term plan is temporary, limited coverage, not a substitute for comprehensive insurance.
Find out what applies in your state
Short term rules vary widely by state, and the federal picture can shift. As an independent, carrier neutral brokerage, we can explain exactly what's available where you live and how it compares to comprehensive options. Free, with no obligation.
You may also want to read our explainer on what "not minimum essential coverage" means and our comparison of short term vs. ACA plans.
Sources
- 1Federal Register — Short-Term, Limited-Duration Insurance and Independent, Noncoordinated Excepted Benefits Coverage (final rule, 89 FR 23338, April 3, 2024)
- 2U.S. Department of Labor — Short-term, limited-duration insurance: the 2024 final rule, fact sheet and the August 7, 2025 tri-agency statement
- 345 CFR § 144.103 — Definitions, including “short-term, limited-duration insurance” (eCFR)
- 4NAIC — State insurance departments (find and contact your state regulator)
This article is general information, not insurance or legal advice. Federal enforcement posture and state rules can change; confirm current details before you enroll. Last updated: 2026-07.
