Best Cheap Health Insurance in Alabama (2024)

Ambetter's Standard Silver plan is the best cheap health insurance in Alabama with rates as low as $496 per month.

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Ambetter may have the cheapest Silver plan in the state, but its Standard Silver plan isn't the cheapest option in some of Alabama's biggest cities. If you live near Birmingham or Montgomery, UnitedHealthcare (UHC) or Blue Cross Blue Shield has cheaper Silver plans. UnitedHealthcare is also a good cheap option if you want a Bronze or Gold plan.

Health insurance costs an average of $584 per month in Alabama, for a 40-year-old with a Silver plan.

Blue Cross Blue Shield and UnitedHealthcare are the best health insurance companies in Alabama. Both companies are rated four out of five stars by ValuePenguin's editors.

How much does health insurance cost in Alabama?

It costs $584 per month, on average, for a 40-year-old to buy a Silver plan in Alabama. Your rate will get higher as you age. A 60-year-old in Alabama pays over twice as much as a 40-year-old for health insurance, no matter the plan level.

Cost of health insurance in Alabama by plan tier

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Cheapest health insurance in Alabama

The best affordable health insurance in Alabama is the Ambetter Standard Silver plan. Silver plans give you good coverage at low rates. And Ambetter's Standard Silver plan is up to 15% cheaper than the state average.

Cheapest plan
Monthly cost
Catastrophic BCBS Blue Protect $303
Bronze UHC Bronze Essential $379
Silver Ambetter Standard Silver $496
Gold UHC Gold Value $583

Monthly costs are for a 40-year-old.

Ambetter, Blue Cross Blue Shield and UnitedHealthcare (UHC) are the only three health insurance companies on that sell health insurance plans in Alabama. No matter what coverage level you need, comparing all the options from these three companies can help you find the cheapest plan.

If you live in or around Birmingham, AL, the UHC Silver Standard plan is the best cheap health insurance option. And if you live in the Montgomery area, the Blue Standardized Silver plan from Blue Cross Blue Shield is the best cheap plan.

Finding your best health insurance coverage in Alabama

The best health insurance plan in Alabama for you will depend on how much medical care you need and how much you can afford to pay toward the monthly rate. The more coverage you need, the more you can expect to pay for a plan. But buying a Bronze, Silver or Gold plan means you might qualify for subsidies based on your income. These can lower the monthly cost of health insurance.

Gold plans: Best for high medical costs

Gold plans give you the most coverage but also cost the most each month. These plans are best for those who expect to go to the doctor often because they cover more of your medical bills. With a Gold plan, you'll likely have lower deductibles, coinsurance and copays than with other plans. Your overall out-of-pocket maximum will also be lower.

Silver plans: Best for average medical costs

Silver plans are a good choice for people with average health care needs. These plans offer a good balance between low rates and good coverage. You'll pay more for your health care than with a Gold plan, but you'll have better coverage than a Bronze plan would give you.

You might be able to lower your share of your medical bills if you buy a Silver plan. Silver is the only tier that offers discounts called cost-sharing reductions. These subsidies lower your deductible, coinsurance, copays and out-of-pocket maximum. Eligibility for cost-sharing reductions is based on income.

Bronze plans: Best for low medical costs

If you don't go to the doctor often and don't anticipate having any major medical issues during the year, a Bronze plan might be a good choice. These plans have low monthly rates, but they also offer less coverage than Silver or Gold plans. You'll probably have a higher deductible, coinsurance and copays. While these plans are good for those on a tight budget, you should make sure you can afford to pay a bigger share of your health care bills.

Catastrophic plans: Best for last-resort coverage

Catastrophic health plans tend to come with the lowest monthly rates and the lowest amount of coverage. If you can't afford any other type of health insurance, or if you only want coverage for a major illness or injury, a Catastrophic plan could be a good idea. However, it's smart to have the money to pay the high out-of-pocket maximum in case you are seriously hurt or ill and are faced with big medical bills. Also, keep in mind that Catastrophic plans are not eligible for premium subsidies.

Medicaid: Best for people with low incomes

Medicaid is a good health insurance option if you have a low income. But qualifying in Alabama is more difficult than it is in other states. To qualify as a parent or another relative caregiver, you can't make more than about $220 per month. Adults without children don't qualify at all, regardless of income.

In addition to having a low income, you also have to meet other requirements. Medicaid in Alabama includes programs for pregnant women, parents and family caregivers, those in nursing homes, the elderly and disabled, and women with breast or cervical cancer.

Are health insurance rates going up in Alabama?

Alabama's health insurance rates haven't changed much in the last several years. Silver plans are slightly cheaper for 2024 compared to 2023. And Gold plans are only 1% more expensive. However, Bronze plans have gotten more expensive for 2024. They cost about 6% more, on average.

Change (2023 to 2024)

Monthly costs are for a 40-year-old.

Catastrophic plans are new in Alabama for 2024, so information about rate changes isn't available yet.

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Best cheap health insurance companies in Alabama

In Alabama, you can only buy health insurance from three different companies when you shop on UnitedHealthcare and Blue Cross Blue Shield are the best companies in the state based on plan quality, customer satisfaction, coverage offerings and extra perks.

Best health insurance companies in Alabama

UnitedHealthcare logo
BlueCross BlueShield  logo
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Average monthly cost for a 40-year old buying a Silver plan in AL. Ratings are based on editor reviews of the company.

Cheapest health insurance plan by Alabama county

Although it's the cheapest Silver plan in the state, Ambetter's Silver Standard plan isn't the cheapest option in some of Alabama's largest cities.

If you live in Birmingham, the cheapest Obamacare Silver plan is the Silver Standard from UnitedHealthcare. In Montgomery, the Blue Standardized Silver plan from Blue Cross Blue Shield is the best cheap option.

Cheapest Silver plan
Monthly rate
AutaugaBCBS Standardized Silver$591
BaldwinUHC Silver Standard$558
BarbourAmbetter Standard Silver$562
BibbUHC Silver Standard$566
BlountUHC Silver Standard$566
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Cheapest Silver plan with rates for a 40-year-old

Average cost of health insurance by family size in Alabama

Your health insurance cost also changes based on how many people are on your insurance plan and their ages. In Alabama, each child you add to your Silver plan adds about $290 per month to your rate.

Family size
Average cost
Individual and child$875
Couple, age 40$1,169
Family of three (adult couple and a child)$1,459
Family of four (adult couple and two children)$1,750
Family of five (adult couple and three children)$2,040

Short-term health insurance in Alabama

If you only need coverage for a short period of time, you could consider a short-term health insurance plan. In Alabama, you can buy short-term health insurance directly from health insurance companies. Plans can last for one year and can be renewed twice for a total of three years of coverage.

Short-term health insurance is not required to cover the same things as Affordable Care Act (ACA) plans on For example, most short-term plans don't have maternity coverage. Before you buy a policy, review the coverage and make sure it's right for you. You may be required to complete a medical exam before buying a policy, and you could be denied coverage due to preexisting conditions.

Frequently asked questions

What is the best health insurance in Alabama?

Blue Cross Blue Shield and UnitedHealthcare are the best health insurance companies in Alabama. Both companies have good coverage and high customer satisfaction. If you're shopping for Alabama health insurance, compare the plan options from both companies to find the best plan for your situation.

What is the cheapest health insurance in Alabama?

Catastrophic health insurance might be the cheapest option in Alabama, but the plans require you to pay a large portion of your medical care. To get good coverage and a low rate, consider the Standard Silver plan from Ambetter. It costs $496 per month for a 40-year-old and gives you better coverage than a Catastrophic plan.

How much does Obamacare cost in Alabama?

A Silver plan in Alabama costs an average of $584 per month for a 40-year-old. Your rate will vary based on your age, where you live in the state, whether you smoke or use tobacco, how many people you insure and the plan level you buy.


The data for Alabama's 2024 health insurance rates and plans is sourced from the Centers for Medicare & Medicaid Services (CMS) government website. Using the public use files (PUFs), rates were averaged across a variety of factors such as plan tier, age, county and family size. The plans and providers for which county-level data was included in the CMS Crosswalk file were used in our analysis; those that were excluded from this data set may not appear.

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.