Best Cheap Health Insurance in Alabama (2024)
Blue Cross Blue Shield (BCBS) sells the best health insurance in Alabama. The company's Silver plans start at $543 per month before discounts.
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Best and cheapest health insurance in Alabama
Cheapest health insurance companies in Alabama
Ambetter has the cheapest health insurance in Alabama, at $496 per month before discounts.
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Affordable health insurance in Alabama
Company |
Cost
| |
|---|---|---|
| Ambetter of Alabama | $496 - $621 |
| UnitedHealthcare | $529 - $643 |
| Blue Cross and Blue Shield of Alabama | $543 - $693 |
- The most affordable health insurance you can get depends on where you live. Ambetter has the cheapest rates for about one-fifth of Alabama's population. Blue Cross Blue Shield and UnitedHealthcare each have the cheapest health insurance for about four in 10 Alabamians.
- Blue Cross and Blue Shield of Alabama is the most popular health insurance company in Alabama. Blue Cross Blue Shield sells over 90% of plans in the state.
Best health insurance companies in Alabama
Blue Cross Blue Shield has the cheapest plans for most people in Alabama.
Blue Cross and Blue Shield of Alabama scores well for customer satisfaction and plan quality and management according to HealthCare.gov. In addition, Blue Cross Blue Shield gets significantly fewer complaints than an average company its size.
Blue Cross and Blue Shield of Alabama is also the only company in the state to sell PPO (preferred provider organization) plans. With a PPO, you don't need to choose a primary care doctor or get a referral to see a specialist. A PPO also lets you visit doctors outside your network.
PPOs are a good choice for people who want to be able to choose their own doctor even if it means paying more.
Best-rated health insurance companies in Alabama
Company |
Editor rating
|
ACA rating
|
|---|---|---|
| Blue Cross and Blue Shield of Alabama | 4.0 | |
| Ambetter of Alabama | NA | |
| UnitedHealthcare | NA |
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Best health insurance in Alabama for flexible coverage
Blue Cross Blue Shield (BCBS) is the only company on the Alabama state marketplace to sell PPO plans. Consider BCBS if you value the flexibility of not needing a referral to see specialists and the freedom to visit doctors outside your network over getting the cheapest rate.
What's the cost of health insurance in Alabama?
Health insurance in Alabama costs $55 per month on average for people who qualify for discounts based on the amount of money they earn.
Most people in Alabama who buy coverage on HealthCare.gov qualify for discounts, called subsidies or premium tax credits. The size of your discount depends on your household income: The less you earn, the higher your discount.
More than half of Alabama residents who have marketplace plans pay less than $10 per month for coverage.
- Higher plan tiers have more expensive rates, but you pay less when you visit the doctor. Lower plan tiers have cheap monthly rates and pay for less when you get care. Silver health plans offer a middle ground with average rates and medium costs when you go to the hospital or get a prescription filled.
- You pay more for health insurance as you get older. Rates rise slowly in your twenties and thirties before increasing rapidly in middle age. A 60-year-old in Alabama pays more than twice as much as a 40-year-old for the same level of coverage.
- Health insurance costs drop when you start Medicare. Medicare is a type of free government health insurance for people age 65 and up or with qualifying illnesses. With Original Medicare, you're only responsible for your $174.70 Medicare Part B monthly rate. You can also enroll in a Medicare Advantage plan which offers extra coverage for free or a small additional cost depending on the plan you get. Keep in mind that Medicare Advantage plans typically restrict you to a network of doctors.
Get affordable health insurance in Alabama
Alabama residents pay $55 per month for marketplace coverage on average if they qualify for discounts based on their income.
The amount you pay for health insurance depends on your household income. People who make less money get larger discounts. Almost everyone who buys marketplace insurance in Alabama qualifies for discounts and more than half of all Alabama residents with Obamacare plans pay less than $10 per month for coverage.
To qualify for discounts, you need to earn between about $15,000 and $60,000 per year as a single person or around $31,000 to $125,000 for a family of four. You can apply your subsidies to any Bronze, Silver or Gold plan bought on HealthCare.gov.
If you earn less than about $15,000 as a single person or $31,000 for a family of four, your options for free and discounted health insurance in Alabama are limited. Alabama is one of 10 states that has not expanded Medicaid eligibility to everyone who earns a low income.
Roughly 107,000 adults without insurance in Alabama aren't eligible for Medicaid but don't earn enough to qualify for health insurance discounts.
To qualify for Medicaid in Alabama, you need to earn a low income and meet another qualifying condition.
Low-cost Alabama health insurance plans by city
UnitedHealthcare has the most affordable plans in Birmingham, at $566 per month.
Blue Cross and Blue Shield of Alabama offers the cheapest health insurance in Huntsville, at $630 per month on average. Ambetter offers the cheapest health insurance in Mobile, at $535 per month.
Blue Cross Blue Shield also has the cheapest rates in other large Alabama cities like Montgomery and Tuscaloosa.
Cheapest health insurance by AL county
County | Cheapest plan | Monthly rates |
|---|---|---|
| Autauga | Blue Cross and Blue Shield of Alabama Blue Standardized Silver | $591 |
| Baldwin | UnitedHealthcare UHC Silver Standard (No Referrals) | $558 |
| Barbour | Ambetter of Alabama Standard Silver | $562 |
| Bibb | UnitedHealthcare UHC Silver Standard (No Referrals) | $566 |
| Blount | UnitedHealthcare UHC Silver Standard (No Referrals) | $566 |
Cheapest Silver plan with rates for a 40-year-old
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Best health insurance by plan tier
The best health insurance plan tier for you depends on your finances and how much health care you'll need in the coming year.
Plan tiers don't have to do with the types of services and prescription drugs you have access to. In other words, a Bronze and a Gold plan may cover the same services. The difference is in how much you'll pay for these services with insurance.
Higher plan tiers have expensive monthly rates and low costs when you visit the doctor. Lower plan tiers have cheap rates, but you're responsible for a larger portion of your medical bill.
Gold plans: Best if you need ongoing care
| Gold plans pay for about 80% of your medical care. |
Gold plans have high rates, but low costs that you're responsible for paying when you visit the doctor.
Gold plans are a good choice if you require a lot of medical care or you think you'll need a lot of care in the coming year. For example, a Gold plan is a good choice for someone undergoing chemotherapy.
Silver plans: Best for average medical needs
| Silver plans pay for about 70% of your medical care. |
Silver health plans offer a balance between average monthly rates and middle-of-the-road costs when you get medical care. That makes Silver health plans a good choice for people who have average medical needs.
Silver plans are also eligible for extra discounts if you earn a low income.
Bronze plans: Best if you're young and healthy
| Bronze plans pay for about 60% of your medical care. |
Consider a Bronze plan if you don't think you'll need a lot of health care in the coming year. Bronze plans have cheap rates, but you'll pay a large portion of your bill when you visit the doctor. That makes Bronze plans a good choice for healthy people who want to save on their monthly rate.
You shouldn't get a Bronze plan if you're dealing with an ongoing illness or disability.
Catastrophic plans: Best to prevent financial disaster
Catastrophic plans will stop you from going deep into medical debt if you have a bad accident or get a serious illness.
Catastrophic plans have cheap rates and bare bones coverage. Plans have high deductibles which means your plan won't cover most things until you pay $9,450 for care first.
Catastrophic plans aren't eligible for discounts. That means you can probably find a cheaper plan with better coverage if you earn a low income.
Only people younger than 30 and those who qualify for a special hardship exemption can buy a catastrophic plan.
Discounted and free health insurance in Alabama
If you live in Alabama and you earn a low income, you may qualify for free or discounted insurance.
Silver plans with cost-sharing reductions: Best if you earn a low income but can't get Medicaid
| Silver plans will pay 73% to 94% of your medical costs if you have a low income. |
You may qualify for extra discounts, called cost-sharing reductions, if you earn a low-income and have a Silver health plan. Cost-sharing reductions help you pay for the costs you're responsible for when you visit the doctor, such as your deductible, copays and coinsurance.
You can only get cost-sharing reductions with Silver plans.
To qualify for cost-sharing reductions, you need to make under $36,000 per year as a single person or less than $75,000 per year for a family of four.
Medicaid: Free health insurance if you qualify
Alabama residents who earn a low income and who meet one other program requirement can enroll in free government health insurance, called Medicaid.
Medicaid requirements in Alabama
- Disabled
- Pregnant
- 18 or younger
- Over the age of 65
- Diagnosed with breast or cervical cancer
- A parent or caretaker to a child 18 or younger
The amount you need to make to get Medicaid in Alabama depends on how you're eligible for the program. For example, if you qualify because you're disabled or age 65 or older, you can't earn more than about $11,500 per year as a single person or around $17,000 as a couple. You also can't have more than $2,000 in your bank account or in other assets as a single person ($3,000 for a couple).
However, if you're disabled and over the age of 65, you can qualify with an income of up to about $34,000 per year.
A pregnant woman in Alabama qualifies for Medicaid if she makes around $22,000 per year or less. Families can get coverage for children under the age of 18 with a similar income.
Medicaid income limits change each year and coverage requirements aren't always straightforward. It's a good idea to apply for Medicaid even if you're not 100% sure you qualify.
Are health insurance rates going up in Alabama?
Health insurance rates in Alabama got 2% more expensive between 2023 and 2024. Bronze plan prices increased the most, at 6%. Silver plans got 1% cheaper and Gold plans rose by 1% on average.
Are health insurance rates going up in AL?
Tier | 2023 | 2024 | Change |
|---|---|---|---|
| Bronze | $425 | $452 | 6% |
| Silver | $591 | $584 | -1% |
| Gold | $718 | $727 | 1% |
Monthly costs are for a 40-year-old.
Catastrophic plans weren't sold on the Alabama health insurance marketplace in 2023.
Plans bought through the Alabama state marketplace have to offer 10 essential benefits.
- Outpatient care
- Emergency care
- Hospital care
- Care for pregnant women and newborns
- Services for mental health and substance use disorders
- Prescription drugs
- Laboratory services
- Coverage for babies
- Rehabilitation services and devices
- Preventive, wellness and ongoing disease services
All Alabama Obamacare plans have to cover these services. That includes Catastrophic, Bronze, Silver and Gold plans, but not short-term health insurance.
Average cost of health insurance by family size in Alabama
Alabama families pay an average of $290 per month for coverage for each child under the age of 19.
Adult coverage costs $584 per month on average. That means a family of four in Alabama with two 40-year-old parents and two children pay an average of $1,750 per month for coverage before discounts.
Family size | Average monthly cost |
|---|---|
| Individual | $584 |
| Individual + Child | $875 |
| Couple, age 40 | $1,169 |
| Family of three | $1,459 |
| Family of four | $1,750 |
Averages based on a Silver plan for 40-year-old adults and children.
Short-term health insurance in AL
Short-term health insurance sold on or after Sept. 1, 2024 can last for up to three months at a time in Alabama.
You can renew your plan for up to four months total in a 12-month period. So, if you buy a policy that lasts for three months, you could renew it for another month. Then you would have to wait eight months before you could buy another short-term plan.
Short-term health plans bought before Sept. 1, 2024 can last for up to 364 days at a time. You can renew these plans for up to three years.
Short-term health plans are a good way to get coverage if you're not able to buy regular health insurance because you missed open enrollment and you don't qualify for a special enrollment period.
However, short-term plans have many drawbacks that make them a poor replacement for regular health insurance.
Pros of short-term health insurance in AL
Cons of short-term health insurance in AL
Frequently asked questions
What is the best health insurance in Alabama?
Blue Cross Blue Shield has the best health insurance in Alabama.
The company's plans have a high 4 out of 5-star rating from HealthCare.gov. Blue Cross and Blue Shield of Alabama also gets significantly fewer complaints than an average company its size according to the NAIC.
Who has the most affordable health insurance in Alabama?
Ambetter has the cheapest health insurance in Alabama, at $496 per month. However, the most affordable plan for you will depend on where you live.
How much does health insurance cost per month in Alabama?
Health insurance in Alabama costs $584 per month before discounts on average. Most Alabama residents who buy coverage on the state marketplace pay an average of $55 per month because of government discounts.
Methodology
Alabama health insurance rate data for 2024 is from the Centers for Medicare & Medicaid Services (CMS) website. ValuePenguin used the CMS public use files (PUFs) to find average rates for different plan tiers, geographic locations and family sizes. Only plans and insurance companies for which county-level data was included in the CMS Crosswalk file were used in our analysis.
Rates are based on a 40-year-old with a Silver plan, unless otherwise noted. Other sources include S&P Global Capital IQ, NAIC (National Association of Insurance Commissioners) and the Alabama Medicaid Agency.
Editorial note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.