The University of Michigan is Ann Arbor's economy in a way few college towns can match: the campus, its health system, and the research enterprise around them employ a huge share of Washtenaw County. The flip side is a constant churn of people whose coverage has an expiration date. Graduating students, postdocs at the end of appointments, visiting researchers, and startup founders leaving university payrolls all hit the same question, and Michigan's 185 day short-term rule shapes the answer.
The rules here
| Max initial term (short-term) | Up to 185 days |
| Max total duration | 185 days in any 365-day period |
| Products available | ACA marketplace, short-term, fixed indemnity, supplemental |
| Exchange type | Federal marketplace (HealthCare.gov) |
| Medicaid expansion | Yes |
What's available in Ann Arbor
| Coverage line | Available here | Key limit | Learn more |
|---|---|---|---|
| ACA marketplace plans | Yes | Open enrollment or a qualifying event | ACA plans |
| Short-term medical | Yes | 185 days per 365-day period | Short-term |
| Extended short-term (multi-year) | No | Michigan's 185 day cap rules out multi-year products | Extended plans |
| Fixed indemnity | Yes | Pays set cash amounts, not a substitute for major medical | Fixed indemnity |
| Supplemental (accident, critical illness, dental, vision) | Yes | Pairs with other coverage | Accident · Critical illness · Dental · Vision |
Short-term and fixed indemnity plans are not ACA compliant and do not count as minimum essential coverage. They are medically underwritten and typically exclude pre-existing conditions.
What one person pays for coverage in Michigan
Average monthly premiums for individual coverage. Family pricing differs; quotes are individual.
| Coverage type | Monthly premium (individual) | What that number is |
|---|---|---|
| ACA marketplace (before subsidy) | $657 avg. | State average, before tax credits (CMS Marketplace OEP, 2026).1 |
| ACA marketplace (after average subsidy) | $127 after credit | State average, after the average tax credit, among subsidized enrollees (CMS Marketplace OEP, 2026).1 |
| Employer coverage (single / family) | $740 / $2021 single / family | State average total monthly premium, single / family; employee pays about $152/mo toward single coverage (MEPS-IC, 2024).2 |
| Medicaid | $0 or nominal for those who qualify | Program design, not an average; eligibility is income-based5 |
Ann Arbor has an unusually deep bench of self-employed consultants and startup founders, and for them the individual marketplace benchmark above is the anchor number. Subsidy eligibility rides on projected household income and size, estimates guarantee nothing, and a licensed agent can sanity-check the projection before you file it.
Averages from federal data and our own client base, not quotes. Your price depends on your age, household, income, and plan choice.
Ann Arbor at a glance
Ann Arbor pairs one of the country's largest public research universities with a tech and biotech startup scene that grew out of it, and the university's medical campus is the dominant health care provider for the region. The county's population skews young, educated, and mobile, which means coverage transitions happen here constantly.
| Population | County | Metro |
|---|---|---|
| ~123,900 | Washtenaw (FIPS 26161) | Ann Arbor |
Three Ann Arbor situations
Wei, 28, postdoc whose appointment ends in August. His next fellowship starts in January. That is about five months of gap, and Michigan's 185 day allowance covers it in a single short-term policy. He read the underwriting terms and confirmed his mild eczema would be excluded, an acceptable tradeoff for a bridge.
Hannah, 35, founder who just left university payroll. Losing employer coverage gave her a Special Enrollment Period. With startup income near zero this year, the marketplace application routed her toward Medicaid, which Michigan expanded. She will revisit at open enrollment once the company pays her a salary.
Gordon, 61, self-employed piano restorer with a cardiac history. No underwritten product will cover what matters for him. His marketplace plan covers the cardiology care without exclusions, and his modest income keeps the subsidized premium manageable.
How Michigan's rules work
Michigan allows short-term coverage for up to 185 days in any 365 day period. That is roughly six months, and the clock counts days of coverage rather than calendar years, so back-to-back policies that exceed 185 days within a rolling year are off the table. The 2024 federal rule that would have shortened these plans further is currently not being enforced per the August 7, 2025 tri-agency statement, but Michigan's cap is state law and applies regardless.
Michigan expanded Medicaid, so low-income adults in Washtenaw County qualify on income alone through the same HealthCare.gov application that prices marketplace subsidies. Between expansion and Ann Arbor's high subsidy uptake, most gaps here are bridgeable without going uninsured.
Open enrollment runs November 1 through January 15 on HealthCare.gov.
Ready to compare your options? A licensed Michigan agent can price your gap and your long-term plan in one conversation. No obligation.
Keep reading — more Michigan guides
Premium data methodology. 1 Marketplace premium averages reflect the average monthly premium before advance premium tax credits, the average monthly premium after advance premium tax credits among subsidized enrollees, and the percentage of enrollees receiving advance premium tax credits, for Michigan, as reported in the Centers for Medicare & Medicaid Services (CMS) Marketplace Open Enrollment Period Public Use Files, 2026 plan year, available at cms.gov. Figures are statewide averages across all metal tiers, ages, and household sizes; your premium will differ based on your age, household, income, county, and plan selection.
2 Employer coverage averages reflect the average total monthly premium for single and family coverage at private-sector establishments in Michigan, including both employer and employee contributions, as reported in the Medical Expenditure Panel Survey Insurance Component (MEPS-IC), Agency for Healthcare Research and Quality, 2024 tables, available at meps.ahrq.gov. Employee contribution figure reflects the average employee share of the single-coverage premium. Employer plan costs vary by employer, plan design, and firm size.
4 No federal or state agency publishes average premium data for short-term limited duration insurance or fixed indemnity insurance. Where we do not display a client-base figure for these products, it is because we do not have sufficient policy volume in that state to report a meaningful average. Short-term and fixed indemnity products are medically underwritten, are not major medical coverage, are not required to cover pre-existing conditions or essential health benefits, and do not constitute minimum essential coverage under the Affordable Care Act.
5 Medicaid and CHIP are public programs, not insurance products sold by this agency. Premiums are $0 or nominal for those who qualify; eligibility is determined by your state based on income, household size, and other factors. The figure shown describes program design, not an average. Contact your state Medicaid agency or HealthCare.gov to check eligibility.