Short-Term Care Insurance
Coverage for Recovery and Rehabilitation
After a surgery, fall, or serious illness, Medicare's skilled nursing and home health benefits run out faster than most people realize. Short-term care insurance covers what comes next.
The Coverage Gap
What Medicare pays for — and when it stops
Medicare Part A covers skilled nursing facility (SNF) care under strict conditions: you must have been hospitalized for at least 3 consecutive days first, and the SNF care must be medically necessary. Even when those conditions are met, coverage is limited:
- Days 1–20: Medicare pays 100%
- Days 21–100: You pay a daily coinsurance ($217/day in 2026). Medigap typically covers this.
- Day 101+: Medicare pays nothing. You pay 100%.
Skilled nursing facility care costs $8,000–$10,000 per month on average. Even a 30-day stay past day 100 represents $8,000–$10,000 out of pocket. For longer recoveries — after a hip replacement, stroke, or major cardiac event — costs can reach $50,000–$100,000.
Short-term care insurance bridges this gap. Unlike long-term care insurance (which covers custodial, permanent care needs), short-term care is designed for recovery periods — typically 90 days to 2 years. It's more affordable, easier to qualify for, and addresses the recovery risk most retirees actually face.
Short-Term Care vs. Long-Term Care Insurance
Short-Term Care
- Recovery-focused
- 90 days – 2 years
- Easier to qualify
- Lower premiums
- Available age 40–89
Long-Term Care
- Permanent care needs
- Years to lifetime
- Stricter underwriting
- Higher premiums
- Harder to get after 75
Typical benefit range
$50–$300/day in benefits · Benefit periods of 30–720 days · Elimination periods of 0–90 days · Often no prior hospitalization requirement
What It Covers
Care in the setting that's right for you
Short-term care insurance covers recovery in a variety of settings — giving you the flexibility to heal where you're most comfortable.
Home Health Care
In-home skilled nursing, occupational therapy, physical therapy, and home health aide services after a hospitalization or injury.
Skilled Nursing Facility
Coverage for recovery stays in a skilled nursing facility (SNF) when your Medicare benefit is exhausted — typically after day 100.
Adult Day Care
Daytime supervision and care in a licensed community setting — providing relief for family caregivers while you recover.
Assisted Living
Care in an assisted living facility during a short-term recovery period when you need more support than you can get at home.
Respite Care
Temporary relief for informal caregivers — family members providing your day-to-day care — so they can take necessary breaks.
Hospice Supplement
Additional benefits that complement Medicare's hospice coverage for comfort-focused care at end of life.
Don't wait for the gap to show up
Short-term care insurance is best purchased before you need it — underwriting is easier and premiums are lower when you're in good health. We'll compare options from multiple carriers and explain exactly how coverage would work for your situation.