Short-Term Health Insurance in Delaware: 2027 Rules
A short-term health plan in Delaware is a temporary policy meant to fill a gap of weeks or a few months, not a full replacement for major medical coverage. It can exclude pre-existing conditions, cap what it pays and decline applicants, and Delaware adds its own rules on top of the federal limits. With Delaware Marketplace premiums rising 16.4% to 16.5% on average for 2027, more people are looking at short-term plans, so it pays to know what they leave out. I don't sell short-term plans; this page explains how they work in Delaware and the year-round options I do offer.
Private health insurance in Delaware
Most people I help in Delaware end up on a private plan, not a Marketplace plan. Private, medically underwritten health insurance is priced on your age, zip code and health instead of your income, so a strong year never raises your premium and there is no tax credit to pay back in April.
Why people leave the Marketplace
- Premiums keep climbing. Delaware Marketplace premiums are rising 16.4% to 16.5% on average for 2027.
- The subsidy cliff. Above 400 percent of the poverty level ($63,840 for one person, $132,000 for a family of four) you pay full price.
- Surprise tax bills. Underestimate your income and you repay the tax credit in April.
- Narrow networks. Many plans are local HMOs or EPOs that need referrals and cover little outside the area.
- High out-of-pocket costs. 2027 out-of-pocket maximums reach $12,000 per person and $24,000 per family.
- One window a year. Outside open enrollment you need a qualifying life event to enroll or switch.
What a private plan does differently
- Start any month. If approved, coverage can begin the first of next month, with no wait for open enrollment.
- Networks that travel. Many private plans use national PPO networks, which can give you in-network doctors outside Delaware too. Networks vary by plan.
- Can cost less than full-price Marketplace plans for some healthy applicants above the subsidy line.
- Accident coverage the Marketplace does not offer. A private plan can be paired with accident coverage, a separate policy. What it includes varies by plan.
- Approval is based on health. You answer health questions, and acceptance is not guaranteed.
With a significant health condition, or income low enough for a large tax credit, a Marketplace plan can be the better fit, and I will tell you if it is. Either way you see both side by side.
Private plans are not ACA Marketplace plans. Benefits, exclusions and pre-existing condition rules differ by plan and by state, so review the plan details before you enroll.
Get a private plan quoteLearn more: coverage not based on income · how underwriting works · private vs Obamacare · PPO plans for individuals · switching from the Marketplace
Short-term plan rules in Delaware
Delaware is stricter than federal law. Under Delaware Department of Insurance Regulation 1320 (18 Del. Admin. Code 1320), a short-term limited duration policy may not be issued for more than three months, cannot be stretched by back-to-back terms, and a carrier may not issue another short-term policy to the same person more than once in a given year. Rates must target at least a 60 percent loss ratio, and the same underwriting standards must apply to every applicant. Applications are medically screened, and pre-existing conditions are generally excluded. The federal four-month cap from 2024, which federal agencies stopped prioritizing for enforcement in August 2025 while drafting replacement rules, never loosened Delaware's limits, and as of late 2026 the state's three-month rule still governs. A few insurers sell compliant plans.
When a short-term plan fits in Delaware, and what to use instead
With a hard three-month ceiling, a Delaware short-term plan really only fits a brief, defined gap: a Wilmington banking employee changing firms with a known start date, or a beach-season worker in Sussex County between jobs. It ends on schedule, can't be renewed, won't cover existing conditions, and isn't eligible for premium tax credits because it isn't ACA coverage. Delaware residents enroll through HealthCare.gov, where losing employer coverage triggers a 60-day special enrollment period. Alternatively, Frank can quote a year-round medically underwritten private plan that isn't capped at three months; if approved, it can start the first of a month.
The Delaware individual market
Delaware buyers enroll through HealthCare.gov, while the state certifies plans and runs a reinsurance program approved through 2029 that lowers premiums. Even so, final 2027 individual rates rise about 16.5 percent, and one of the state's three individual-market insurers is leaving, so affected enrollees must choose new plans. Delaware's own continuation law covers employers with 1 to 19 workers for up to nine months, filling the gap below federal COBRA. Short-term plans are limited to three nonrenewable months, among the strictest rules in these states. Small-group plans face an even larger increase than individual plans, about 18 percent, which gives small Delaware employers a reason to compare individual coverage reimbursement against their renewal.
Other Delaware rules to know
- Leaving a small employer: Delaware requires insured group plans of employers with 1 to 19 employees to offer up to nine months of continuation after three months of coverage, at no more than 102 percent of the group rate.
- Short-term plans: Delaware limits short-term plans to three months, with no back-to-back renewals, under its insurance regulation.
- Where to enroll: Delaware uses HealthCare.gov through a state partnership. Open enrollment for 2027 coverage runs November 1, 2026 to January 15, 2027. Private, medically underwritten plans can start the first of any month if approved.
- 2027 rates: individual plans 16.4% to 16.5% on average, small-group plans about 18%. See the Delaware 2027 rate page.
What a short-term plan is
Short-term limited-duration insurance is temporary coverage outside the ACA rules. It can ask health questions, turn applicants down, exclude conditions you already have and leave out benefits such as maternity care, mental health care or prescriptions. It is not Marketplace coverage, so no subsidy applies to it.
Why the time limit matters
A 2024 federal rule caps short-term plans at three months, or four with renewals. In August 2025 federal regulators said they would not prioritize enforcing that cap, so the real limit now depends on your state, from a few months to as long as three years. However long it lasts, when the plan ends you are not guaranteed a new one, and losing a short-term plan does not open a Marketplace enrollment window.
The two options that last all year
A Marketplace plan accepts everyone during open enrollment or within 60 days of losing other coverage. A medically underwritten private plan is year-round coverage priced on age, ZIP code and health; it is not a Marketplace plan, approval depends on your health answers, benefits vary by plan, and if approved it can start the first of a month. For most people who need more than a short bridge, one of these two is the better fit.
For 2027 the Marketplace credit stops at 400 percent of the poverty level: $63,840 for one person, $86,560 for two and $132,000 for a family of four. The out-of-pocket maximum for 2027 Marketplace plans is $12,000 for one person and $24,000 for a family. The full guide covers the rest.
Compare Delaware plans
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Delaware questions
Where do Delaware residents enroll in 2027 coverage?
Delaware uses HealthCare.gov through a state partnership. Open enrollment for 2027 coverage runs November 1, 2026 to January 15, 2027.
What continuation rights does Delaware give after leaving a small employer?
Delaware requires insured group plans of employers with 1 to 19 employees to offer up to nine months of continuation after three months of coverage, at no more than 102 percent of the group rate.
How much are Delaware premiums rising for 2027?
Individual-market premiums are set to rise 16.4% to 16.5% on average, and small-group plans about 18%.
Is a short-term plan cheaper than a Marketplace plan?
The premium often is, but the plan covers less, can exclude pre-existing conditions and ends after a few months. Compare it with what you would actually pay for care under each option.
Can I get a short-term plan after open enrollment ends?
Where your state allows them, yes, but they are temporary. A year-round private plan can also be applied for in any month and, if approved, can start the first of a month.
Sources: www.law.cornell.edu, insurance.delaware.gov, www.healthinsurance.org, www.cms.gov. Facts checked October 2026. See all Delaware health insurance rules.
Short-term plans in other states
Written by Frank Caballero, licensed health insurance agent in Delaware and 30 other states, NPN 21032307.