WHAT IS SHORT-TERM CARE INSURANCE

Michael T. Braden August 24, 2025 MEDICARE PART B

WHAT IS SHORT-TERM CARE INSURANCE

Short-term care insurance, or recovery care insurance, is a type of policy that can help you temporarily pay for senior care services.

Medicare Beneficiary Reading About Short-Term Care Insurance On His Smartphone

Short-Term Care Insurance (STC) is an essential financial tool that provides coverage for individuals who require temporary care services. Also known as recovery or post-hospitalization insurance, short-term care insurance protects against the high costs associated with short-term care needs. Here, we will delve into the details of short-term care insurance, including its purpose, cost, benefits, and other key aspects.

UNDERSTANDING WHAT SHORT-TERM CARE INSURANCE IS

Short-term care insurance differs from long-term care insurance (LTC) in terms of coverage duration and scope. While long-term care insurance is designed to cover extended care needs typically beyond 90 days, short-term care insurance provides coverage for shorter periods, usually up to one year. Short-term care insurance acts as a bridge between traditional health insurance and long-term care insurance, ensuring that individuals receive the necessary care during recovery or rehabilitation periods.

SITUATIONS WHERE SHORT-TERM CARE INSURANCE IS A GREAT SOLUTION

Consider a scenario where an individual undergoes surgery and requires temporary assistance with daily activities. Short-term care insurance can cover in-home care, rehabilitation services, and even short stays at nursing facilities, easing the financial burden during recovery. It is an ideal solution for individuals who may not require long-term care but still need support for a limited period.

WHEN IS THE BEST TIME TO PURCHASE SHORT-TERM CARE INSURANCE?

Short-term care insurance can serve a constructive role in your health insurance coverage plan. Although there is no “perfect time” to buy STC, there are several situations where purchasing a short-term care insurance plan can be incredibly beneficial. 

Oftentimes, those who have been declined long-term care insurance or those who cannot afford it may find that STC is a great alternative. Additionally, those looking for coverage during the elimination period (the period of time you have to wait before your long-term care insurance kicks in) often find a lot of value in short-term care insurance.

QUALIFYING FOR SHORT-TERM CARE INSURANCE

Short-term care insurance covers a range of qualifying expenses. Some expenses that may be covered with STC include:

• Rent at facilities.

• Home care services.

• Home health care services.

• Skilled nursing care.

• Therapy services. 

  
  

These expenses are designed to support individuals during their recovery and rehabilitation processes.

WHAT ARE THE BENEFITS AND LIMITATIONS OF HAVING A SHORT-TERM CARE INSURANCE POLICY?

When making a claim, the amount of money accessible through short-term care insurance benefits depends on the specific policy and its coverage limits. Some policies may have a daily, weekly, or monthly limit for benefits. Short-term care insurance policies typically offer flexibility regarding benefit duration, allowing individuals to select a coverage period that aligns with their anticipated recovery timeline. Additionally, short-term care insurance can be used in conjunction with long-term care insurance policies, providing complementary coverage during different phases of care.

SHORT-TERM CARE INSURANCE AVAILABILITY

Notably, short-term care insurance is not available to everyone. Although numerous insurance companies offer this type of insurance, many states do not permit them to issue it. As of January 2022, according to the American Association of Long-Term Care Insurance, you will not be able to get short-term care insurance if you live in California, Minnesota, Florida, New York, Vermont, New Hampshire, Connecticut, or Massachusetts.

Pros and Cons of Short-Term Care Insurance

While short-term care insurance may sound like a great option, it’s not suitable for everyone. As with anything in life, there are both benefits and drawbacks to short-term care insurance. To help you get a better understanding of them, we’ve put together a list of the most prominent pros and cons of STC below:

Pros:

• Provides immediate coverage for short-term health care needs.

• Offers flexible benefit durations, allowing you to tailor the perfect policy to your unique situation.

• Acts as a bridge between traditional health insurance and long-term care insurance.

• Eases financial burden during recovery periods.

  
  

Cons:

• STC plans typically offer only $100 to $200 per day in coverage, which may not be sufficient for some.

• Short-term care plans are typically only good for one year or less.

• STC isn’t available in a few states, including some of the most populous states.

  
  

HOW MUCH DOES SHORT-TERM CARE INSURANCE COST?

As with any insurance, the cost of short-term care insurance will be based on your specific situation, including factors such as your age, health status, coverage limits, and coverage duration. Given the shorter-term nature of STC, it’s often much cheaper than long-term care insurance. In most cases, you can expect to pay between $65 and $300 per month for $150 per day’s worth of coverage, depending on your age and the type of care you wish to receive.

HOW TO APPLY FOR SHORT-TERM CARE INSURANCE & HOW TO ACCESS YOUR BENEFITS

The application process for STC involves completing an application form, providing relevant medical information, and undergoing a thorough underwriting process. Insurance carriers assess your health condition and may require medical exams or records to determine eligibility and premium rates.

To claim with STC, you must contact your Short-Term Care Insurance company and provide documentation, such as medical records and bills, to support your claim. The carrier will review the information and, if approved, provide you with the benefits outlined in your policy.

Triggers for claiming STC benefits may include hospitalization, surgery, rehabilitation needs, or recovery from an illness or injury. Each policy will specify the qualifying events or conditions that allow you to make a claim.

The duration of claimable benefits with STC varies depending on the policy. Some policies offer benefits for up to 360 days, allowing individuals to receive care during the necessary recovery period.

WRAPPING THINGS UP

WHY SHOULD YOU CONSIDER A SHORT-TERM CARE INSURANCE POLICY

Short-term care insurance can be a valuable solution for individuals who require temporary care and support during recovery or rehabilitation. This may make short-term care insurance a great addition to your health insurance coverage plan. Before you buy a policy, you should consult with a reputable insurance broker. A reputable broker will help you find the best policy for your unique needs and wants.