Short-Term Health Insurance in Indiana: 2027 Rules
A short-term health plan in Indiana 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 Indiana adds its own rules on top of the federal limits. With Indiana Marketplace premiums rising 17.1% to 17.5% 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 Indiana and the year-round options I do offer.
Private health insurance in Indiana
Most people I help in Indiana 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. Indiana Marketplace premiums are rising 17.1% to 17.5% 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 Indiana 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 Indiana
Indiana sets its own short-term standards. House Enrolled Act 1631 (2019), amending Indiana Code 27-8-5-2.5, lets a short-term plan run up to 364 days per term and be renewed for as long as 36 months, with a benefit limit of at least $2 million and required coverage for ambulatory, hospital, emergency and laboratory services. The Indiana Department of Insurance warns these plans don't cover pre-existing conditions, aren't required to include prescription drugs, maternity or mental health care, and can be retroactively cancelled over undisclosed conditions. A 2024 federal rule cut terms to four months total, but enforcement was deprioritized in August 2025 pending new rulemaking that remained unfinished as of late 2026, and Indiana insurers again offer longer terms.
When a short-term plan fits in Indiana, and what to use instead
Indiana's large manufacturing workforce, from RV plants in Elkhart to auto suppliers around Kokomo, sees layoffs and rehires that can leave a gap of a few weeks. A short-term plan can cover new accidents and illnesses during that pause, but it won't pay for existing conditions, isn't ACA coverage, and gets no tax credit. Hoosiers enroll through HealthCare.gov, where a job loss opens a 60-day special enrollment period. If you'd rather lock in longer coverage, Frank offers year-round medically underwritten private plans; if approved, one can start on the first of a month and spares you from re-applying every few months.
The Indiana individual market
Indiana tradespeople shop for individual coverage on HealthCare.gov, where open enrollment for 2027 runs November 1, 2026 to January 15, 2027, and a job change, a move or the loss of other coverage can open a special enrollment period outside that window. Indiana has no state premium subsidy or reinsurance program, so any help with premiums comes from the federal tax credit, which depends on an honest estimate of next year's income. Because Indiana's small-employer continuation law has never taken effect, leaving a shop with fewer than 20 workers usually means losing group coverage when the job ends, which makes the 60-day special enrollment window after a loss of coverage the main safety net. Short-term plans sold in Indiana can last much longer than in most states, but they can turn down applicants with health conditions and do not have to cover every essential benefit. For 2027, new federal rules also make it easier for people who do not qualify for tax credits to buy a catastrophic plan.
Other Indiana rules to know
- Leaving a small employer: Indiana has no working mini-COBRA law: a section of the insurance code that would give small employer plan members 12 months of continuation only takes effect if the legislature funds an offset for small employers, so people leaving a shop with fewer than 20 employees usually need new coverage right away.
- Short-term plans: Indiana law, changed in 2019, lets short-term plans run up to 364 days at a time and up to 36 months with renewals, with at least $2 million in benefits, and federal agencies are not prioritizing enforcement of the federal four-month limit.
- Where to enroll: Indiana uses HealthCare.gov. 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 17.1% to 17.5% on average, small-group plans about 14.5%. See the Indiana 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 Indiana plans
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Indiana questions
Where do Indiana residents enroll in 2027 coverage?
Indiana uses HealthCare.gov. Open enrollment for 2027 coverage runs November 1, 2026 to January 15, 2027.
What continuation rights does Indiana give after leaving a small employer?
Indiana has no working mini-COBRA law: a section of the insurance code that would give small employer plan members 12 months of continuation only takes effect if the legislature funds an offset for small employers, so people leaving a shop with fewer than 20 employees usually need new coverage right away.
How much are Indiana premiums rising for 2027?
Individual-market premiums are set to rise 17.1% to 17.5% on average, and small-group plans about 14.5%.
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.in.gov, www.in.gov, www.healthinsurance.org, www.cms.gov. Facts checked October 2026. See all Indiana health insurance rules.
Short-term plans in other states
Written by Frank Caballero, licensed health insurance agent in Indiana and 30 other states, NPN 21032307.