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Short-Term Health Insurance in Illinois

They can no longer be sold here: a state ban took effect January 1, 2025, and the federal non-enforcement doesn't override it. What to use instead.

At a glance

Short-term medical insurance cannot be sold in Illinois — a state ban took effect January 1, 2025 (Public Act 103-0649).

No company may issue, deliver, amend, or renew short-term coverage to an Illinois resident, including through out-of-state groups or associations.

The August 2025 federal non-enforcement doesn't change this — Illinois state law overrides the federal definition.

For coverage, Illinois residents use Get Covered Illinois, the state's ACA marketplace, or Medicaid.

Why short-term medical isn't available in Illinois

Illinois bans short-term limited-duration insurance outright. Public Act 103-0649 (HB 2499, signed July 10, 2024) replaced Illinois's prior short-term insurance law (215 ILCS 190) with a prohibition written into the Insurance Code: "no company shall issue, deliver, amend, or renew short-term, limited-duration insurance to any resident." The ban took effect January 1, 2025.

Illinois defines short-term coverage as health coverage with a term fewer than 365 days (other than excepted benefits or student health coverage), and the prohibition also reaches short-term coverage sold to Illinois residents through out-of-state groups or associations. Existing policies may run to the end of their term but cannot be renewed or extended.

The federal government's August 2025 decision not to enforce its own short-term rule does not change any of this — Illinois state law overrides the federal definition, so there is no lawful way to sell, renew, or extend a short-term plan to an Illinois resident.

What to consider instead

Since short-term medical isn't an option, here's what Illinois residents can realistically use (described as coverage types, not specific products):

Get Covered Illinois (the ACA marketplace) — comprehensive major-medical coverage that covers essential health benefits, can't turn you down for pre-existing conditions, and may come with income-based subsidies. This is the primary route to real coverage in Illinois.

Medicaid — Illinois has expanded Medicaid, which covers many low-income residents at little or no cost. Worth checking first.

Fixed indemnity and other excepted benefits — supplemental coverage that pays limited, defined benefits. These remain legal in Illinois, and Illinois requires the federal fixed-indemnity consumer-notice disclosure on them (IDOI Company Bulletin 2024-15). They are supplemental only, not a substitute for major medical.

As an independent, carrier-neutral brokerage, we don't sell short-term plans in Illinois — no one lawfully can. We can help you compare the coverage that is available.

How enrollment works here

Illinois moved to its own state-based marketplace, Get Covered Illinois (getcovered.illinois.gov), for plan year 2026 — so you enroll in ACA plans there rather than through HealthCare.gov. Enrollment works on a schedule:

Open Enrollment happens once a year, typically each fall through early winter, for coverage that starts the following January.

Special Enrollment Periods are available year-round if you have a qualifying life event — for example, losing job-based coverage, moving, getting married, or having a baby.

Medicaid is different: you can apply any time of year, and if you qualify, coverage can start without waiting for Open Enrollment. It's worth checking Medicaid eligibility before anything else.

What it costs

Because short-term medical isn't sold in Illinois, the real cost question is about the coverage that is available — and we don't quote premiums here, since they depend on your situation. A few factors to keep in mind:

For Get Covered Illinois plans, your premium depends on income (which determines subsidy eligibility), age, area, tobacco use, and the metal level you choose. Many Illinois residents qualify for subsidies that lower the monthly cost.

For Medicaid, coverage is available at little or no cost to those who qualify, based mainly on household income and size.

For fixed indemnity or excepted benefits, cost depends on the benefit amounts and who's covered — but remember these are supplemental, so you'd typically pair them with real coverage, not rely on them alone.

Matthew T. Giberti Licensed Expert · NPN 20698856 · Updated July 2026

Short-term medical insurance is not available for sale in Illinois; state law prohibits any company from issuing, delivering, amending, or renewing it for a resident. Fixed indemnity and other excepted benefits that remain legal in Illinois are supplemental coverage — they are not minimum essential coverage under the Affordable Care Act, do not cover the full set of essential health benefits, and are not a substitute for major medical coverage.

GetHealthPlans.com is operated by MTG Insurance Agency, an independent, carrier-neutral brokerage. We do not issue insurance and are not a government agency or the health insurance marketplace. Regulatory details on this page reflect Illinois law and Illinois Department of Insurance guidance as of the last-reviewed date and can change; confirm current details before making coverage decisions.