Short-Term Health Insurance in Michigan: 2027 Rules
A short-term health plan in Michigan 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 Michigan adds its own rules on top of the federal limits. With Michigan Marketplace premiums rising 14.5% 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 Michigan and the year-round options I do offer.
Private health insurance in Michigan
Most people I help in Michigan 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. Michigan Marketplace premiums are rising 14.5% 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 Michigan 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 Michigan
Michigan writes its own rule into statute. Under MCL 500.2213b, a short-term policy can cover no more than 185 days, is nonrenewable, and successive terms may not exceed 185 days in any 365-day period. The law also requires the coverage to be available without underwriting once a completed application arrives, yet it does not cover any pre-existing condition. Insurers that also sell regular individual coverage may not let short-term premiums exceed 10% of their individual-market premiums. The Department of Insurance and Financial Services (DIFS) issued Bulletin 2025-22-INS on October 1, 2025, after federal agencies said they would stop prioritizing the 2024 four-month limit, and trackers then reported at least six insurers selling 185-day plans in 2026. No new federal rule had appeared by late 2026.
When a short-term plan fits in Michigan, and what to use instead
Auto plants retooling, a laid-off engineer in Warren waiting on an offer, a seasonal worker up north after the tourist months end: in Michigan, those short stretches are where a 185-day policy shows up. Because state law bars coverage of anything pre-existing, it is a poor match for someone managing an ongoing condition, and it is neither ACA coverage nor eligible for a subsidy. Michigan residents enroll through HealthCare.gov, where losing coverage triggers a 60-day special enrollment period. The other path is a year-round private plan with medical underwriting; if approved, it can take effect the first of the next month and keep going well beyond six months.
The Michigan individual market
Michigan residents buy individual coverage on HealthCare.gov, and open enrollment for 2027 runs November 1, 2026 to January 15, 2027, with special enrollment available after losing other coverage, moving, marrying or having a baby. Michigan has no state premium subsidy or reinsurance program, so financial help comes from the federal premium tax credit based on your projected income. The biggest gap for Michigan tradespeople is continuation: the state has no mini-COBRA law, so anyone leaving a shop with fewer than 20 employees should plan on a Marketplace plan or another option within the 60-day special enrollment window. Michigan also keeps a tight rein on short-term plans, which are capped at 185 days in any 365-day period and cannot be stretched with renewals. Federal changes for 2027 expand access to catastrophic plans for people who do not qualify for tax credits and end the requirement that insurers offer standardized plans on HealthCare.gov.
Other Michigan rules to know
- Leaving a small employer: Michigan has no state continuation law for small employer plans, so people leaving an employer with fewer than 20 workers generally lose group coverage when the job ends, while federal COBRA still applies at larger employers.
- Short-term plans: Michigan limits short-term plans to 185 days in any 365-day period, with no renewals or extensions past that, regardless of the federal enforcement pause.
- Where to enroll: Michigan 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 14.5% on average, small-group plans about 10%. See the Michigan 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 Michigan plans
Licensed in Michigan. Private plans priced first, Marketplace alongside when it fits. No fee.
Michigan questions
Where do Michigan residents enroll in 2027 coverage?
Michigan uses HealthCare.gov. Open enrollment for 2027 coverage runs November 1, 2026 to January 15, 2027.
What continuation rights does Michigan give after leaving a small employer?
Michigan has no state continuation law for small employer plans, so people leaving an employer with fewer than 20 workers generally lose group coverage when the job ends, while federal COBRA still applies at larger employers.
How much are Michigan premiums rising for 2027?
Individual-market premiums are set to rise 14.5% on average, and small-group plans about 10%.
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.legislature.mi.gov, www.michigan.gov, www.healthinsurance.org. Facts checked October 2026. See all Michigan health insurance rules.
Short-term plans in other states
Written by Frank Caballero, licensed health insurance agent in Michigan and 30 other states, NPN 21032307.