Short-term health insurance is legal in most of the country, but in six states you effectively can't buy it — either because state law bans it outright, or because the rules make it impossible to sell and no carrier offers it.
Quick answer: As of mid-2026, short-term medical is effectively unavailable in six states: California, Colorado, Illinois, Minnesota, New Mexico, and Rhode Island. Two (California and Illinois) ban it by statute; the other four choke it off through strict rules or a carrier exodus. In all six, the federal government's decision not to enforce its own short-term rule does not revive the market — state law controls.
The six states with no real short-term market
| State | Status | Mechanism |
|---|---|---|
| California | Banned by statute | Cal. Insurance Code 10123.61 bars insurers from issuing, renewing, or offering short-term coverage (since Jan 1, 2019) |
| Illinois | Banned by statute | Public Act 103-0649 prohibits issuing, delivering, amending, or renewing short-term coverage to a resident (since Jan 1, 2025) |
| Colorado | Effectively unavailable | A 6-month cap plus ACA-equivalent requirements (guaranteed issue, essential health benefits, 80% loss ratio) made plans unprofitable; carriers left in 2019 and none returned |
| Minnesota | Effectively unavailable | A 185-day / 365-of-555-day cap, plus no carrier has offered new short-term plans since August 2023 |
| New Mexico | Effectively unavailable | A 3-month, non-renewable, non-extendable cap plus "QHP-parity" filing requirements; no carriers offer short-term plans |
| Rhode Island | Effectively unavailable | Short-term coverage is defined as a "health benefit plan," so it must be fully ACA-compliant; no carriers offer it |
Two kinds of "no"
It helps to understand why a state is off-limits, because the two paths are different:
Outright statutory bans (California, Illinois). These states passed laws that flatly prohibit selling or renewing short-term coverage to residents. Illinois's ban even reaches plans sold through out-of-state associations. If you see a short-term plan advertised to a resident of these states, it isn't lawful to sell there.
Rules that make the product impossible (Colorado, Minnesota, New Mexico, Rhode Island). These states didn't post a simple "banned" sign. Instead, they require short-term plans to look so much like comprehensive coverage — or capped them so tightly — that carriers stopped offering them. The practical result is the same: nothing to buy.
A related group: states that restrict, but don't ban
Ten more states allow short-term coverage but limit it to a short window, so it can't serve as long-term coverage:
- About 3–4 months total: Maryland, North Carolina, Oregon, Pennsylvania, Virginia.
- About six months per year: Michigan, Nevada.
- Other short caps: Ohio (a single 364-day, non-renewable policy), Kansas (about 24 months via one renewal), Wisconsin (a 12-month term, 18-month aggregate).
If you live in one of these states, short-term coverage may still work as a brief gap-filler — just not as a year-over-year solution.
What to buy instead in a no-short-term state
If you're in one of the six states above, short-term medical isn't the answer — but you still have real options:
- ACA marketplace coverage — comprehensive, guaranteed issue, and often subsidized. Each of these six states runs its own marketplace (Covered California, Connect for Health Colorado, Get Covered Illinois, MNsure, beWellnm, and HealthSource RI).
- Medicaid — all six have expanded Medicaid, so many low-income residents qualify for free or low-cost coverage.
- Fixed indemnity or other excepted benefits — still legal in these states, but supplemental only, not a substitute for comprehensive coverage.
Key takeaways
- Short-term medical is effectively unavailable in six states: CA, CO, IL, MN, NM, RI.
- California and Illinois ban it by statute; Colorado, Minnesota, New Mexico, and Rhode Island choke it off through rules or a lack of carriers.
- The paused federal short-term rule does not override these state decisions.
- In these states, look to the ACA marketplace or Medicaid for real coverage.
Get help finding coverage in your state
If short-term isn't available where you live, we can help you compare the coverage that is — ACA marketplace plans, Medicaid eligibility, or supplemental options. As an independent, carrier-neutral brokerage, our help is free and there's no obligation.
This article is general information, not insurance or legal advice. Regulatory details reflect state law and guidance as of the last-updated date and can change; confirm current details before making coverage decisions. Reviewed by Matthew T. Giberti (NPN 20698856). Last updated: 2026-07.