Find Cheap Health Insurance Quotes in Alabama
In Alabama, affordable health insurance can be found on the state marketplace. We examined all the health insurance plans in Alabama and found that in the majority of Alabama counties, the Blue Cross Select Silver is the cheapest Silver health plan.
For 2023, the average monthly cost of health insurance in Alabama is $578 for a 40-year-old — an increase of 2% from 2022.
Although there are two insurers available on the state exchange, Blue Cross and Blue Shield of Alabama consistently provides the best prices on plans across all coverage tiers. But as you compare health insurance policies with different levels of coverage, the best plan for you may be different from the cheapest plan in terms of premiums, as cost sharing and benefits vary.
Cheapest health insurance by metal tier
We compared health insurance policies in Alabama by metal tier to find the most affordable plans for different levels of coverage. The rates may change by county, but the table below provides a good starting point in comparing the costs and benefits you may expect from a given metal tier. It shows the monthly rate for a 40-year-old for each tier of coverage and the deductible you may expect from the plan.
|Bronze||Blue Saver Bronze||$414||$7,950||$7,950|
|Silver||Blue Saver Silver EPO||$538||$3,600||$5,700|
|Gold||Blue Cross Select Gold||$695||$850||$6,000|
In addition to metal tier and the policy you choose, your age also affects the actual cost of a health insurance plan. As you get older, health insurance premiums across all metal tiers increase. For example, a 60-year-old would pay $791 more per month than a 40-year-old for a Gold plan in Alabama.
Find Cheap Health Insurance Quotes in Alabama
Finding the best health insurance coverage in Alabama
The best health insurance plan in Alabama will depend on the county you live in, as this determines which policies are available. It's also based in part on your income, as low-to-moderate-income households may qualify for subsidies that reduce the cost of health insurance. No matter where you live, you will be able to choose from different metal tiers that offer varying levels of coverage and rates to fit your financial situation.
Gold and Silver plans typically charge higher monthly rates. However, you can save on medical costs because the plans have lower deductibles, copays and coinsurance than Bronze and Expanded Bronze plans. People who expect to use their health insurance often for recurring medical costs may be better off choosing a higher metal tier policy. However, if you're young and healthy, you would likely save money by choosing a lower tier plan.
Gold plans: Best for high expected medical costs
The cheapest Gold plan in Alabama is the Blue Cross Select Gold.
Gold plans are the highest metal tier available in Alabama and can be the best option for those who expect to use their insurance often. These typically cover the most out-of-pocket costs, which means you'll pay lower deductibles, copays and coinsurance. They’re best for those who expect to incur high medical expenses from chronic conditions or people who have costly prescriptions. On average, you can expect a Gold plan to cover roughly 80% of your health care expenses while you pay the other 20%.
Silver plans: Best for those with low incomes or average medical costs
The cheapest Silver plan in Alabama is the Blue Saver Silver EPO.
Silver policies offer a middle ground between Gold and Bronze plans. In Alabama, Silver plans for a 40-year-old are 22% cheaper than Gold plans on average, but they're 39% more expensive than Bronze plans.
Silver plans provide a good balance between affordable monthly premiums and out-of-pocket costs, but they stand out due to their cost-sharing reduction (CSR) subsidies.
If you are part of a low-income household, you may qualify for subsidies with a Silver health plan, which would further lower your out-of-pocket expenses. Typical Silver plans cover about 70% of your health care costs while you pay 30%. But with subsidies, you could qualify for a Silver plan that covers up to 94% of your health care costs.
Bronze plans: Best for young, healthy people
The cheapest Bronze plan in Alabama is the Blue Saver Bronze.
Low monthly rates are available under Bronze plans, but they also offer the least coverage. So if you need medical care during the year, you would have to pay more money out of pocket before coverage kicks in. On average, you can expect a Bronze plan to cover about 60% of your health costs while you pay for the other 40%.
Health insurance rate changes in Alabama
Health insurance rates, deductibles and out-of-pocket maximums are set on an annual basis by the health insurance providers. The rate changes are then sent to the federal exchange for approval before being offered during open enrollment.
Change (2022 to 2023)
|Bronze and Expanded Bronze||$406||$416||$425||2%|
Monthly rates are for a 40-year-old adult.
For 2023, Expanded Bronze plans are no longer offered in Alabama, and shoppers only have access to Bronze plans. Even with this change, the average cost for this tier of coverage increased by 2% — the same as the rate increase for all metal plans in Alabama.
Short-term health insurance in Alabama
In Alabama, residents can buy short-term health insurance through private health insurers at any point during the year. The state follows federal guidelines, so coverage is limited to one year and can be renewed for up to 36 months.
Short-term health insurance does not cover the essential health benefits — such as maternity care, mental health services and prescription drugs — like Affordable Care Act (ACA) plans do. Before you buy a policy, you should carefully evaluate it against your health care needs. You will be required to complete a medical exam before buying a policy, and you may be denied coverage due to preexisting conditions.
Find Cheap Health Insurance Quotes in Alabama
Best cheap health insurance companies in Alabama
There are two health insurance companies on the Alabama state exchange: Blue Cross and Blue Shield of Alabama and UnitedHealthcare. However, UnitedHealthcare is only available in 13 of Alabama's 67 counties, whereas Blue Cross and Blue Shield is available throughout the state.
For 2023, Blue Cross and Blue Shield has the best health insurance plans in Alabama because of its low-cost options that have good ratings and provide access to a large network of doctors and medical providers.
Cheapest health insurance plan by county
Although coverage through the Alabama health insurance marketplace varies by county, the Blue Cross Select Silver is the cheapest Silver plan in 90% of the counties. In six counties, the Blue Saver Silver EPO plan is the cheapest. Both plans are from Blue Cross and Blue Shield.
Cheapest Silver plan
Couple, age 40
Couple, age 40 and child
|Autauga||Blue Cross Select Silver||$560||$1,120||$1,399|
|Baldwin||Blue Cross Select Silver||$560||$1,120||$1,399|
|Barbour||Blue Cross Select Silver||$560||$1,120||$1,399|
|Bibb||Blue Saver Silver EPO||$538||$1,077||$1,344|
|Blount||Blue Saver Silver EPO||$538||$1,077||$1,344|
|Bullock||Blue Cross Select Silver||$560||$1,120||$1,399|
|Butler||Blue Cross Select Silver||$560||$1,120||$1,399|
|Calhoun||Blue Cross Select Silver||$560||$1,120||$1,399|
|Chambers||Blue Cross Select Silver||$560||$1,120||$1,399|
|Cherokee||Blue Cross Select Silver||$560||$1,120||$1,399|
|Chilton||Blue Saver Silver EPO||$538||$1,077||$1,344|
|Choctaw||Blue Cross Select Silver||$560||$1,120||$1,399|
Average cost of health insurance by family size in Alabama
Beyond the metal tier and the ages of your family members, your family's size will also affect the monthly rates for your health insurance policy. In Alabama, the average cost of a Silver health plan for a family of three, assuming two 40-year-old parents and a child, is $1,475 per month.
For each child, the average cost of a Silver health plan increases by around $294. A family of four, assuming it has two 40-year-old adults and two children, would cost an average of $1,768 per month to insure. The monthly rate for children under the age of 15 will remain flat, but once a child turns 15 years old, the monthly health plan premium will increase as they get older.
|Individual and child||$884|
|Couple, age 40||$1,181|
|Family of three (adult couple and a child)||$1,475|
|Family of four (adult couple and two children)||$1,768|
|Family of five (adult couple and three children)||$2,062|
Adults are assumed to be 40 years old. Children are assumed to be 14 or younger. Sample rates are based on the average monthly cost for a Silver plan in Alabama.
The health insurance data for rates and plans in this report is found on the Centers for Medicare & Medicaid Services (CMS) government website. Using the public use files (PUFs), premiums were averaged across a variety of factors such as metal 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.