Health Insurance

Best Cheap Health Insurance in Alabama 2022

Best Cheap Health Insurance in Alabama 2022

Find Cheap Health Insurance Quotes in Alabama

Currently insured?

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, Blue Cross Select Silver was the cheapest Silver health plan.

For 2022, the average monthly cost of health insurance in Alabama is $567 for a 40-year-old — an increase of 3% from the 2021 plan year.

Although there are two insurers available on the state exchange, Blue Cross and Blue Shield of Alabama consistently provided 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 minimum monthly rate for a 40-year-old for each tier of coverage and the deductibles you may expect from the plan.

Metal tier
Cheapest plan
Monthly cost
Deductible
Maximum out of pocket
Expanded BronzeBronze 8700$398$8,700$8,700
SilverSilver 5000$528$5,000$8,700
GoldGold 1000$659$1,000$8,700

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.

Alabama cheapest health insurance

Methodology

Find Cheap Health Insurance Quotes in Alabama

Currently insured?

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-income households may qualify for cost-sharing reductions (CSR), also known as subsidies. 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 premiums. However, they charge lower out-of-pocket expenses, such as 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 metal tier plan.

Gold plans: Best for high expected medical costs

The highest metal tier available in Alabama, Gold plans can be the best 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 income or average medical costs

Silver policies offer a middle ground between Gold and Bronze plans. In Alabama, Silver plan premiums for a 40-year-old are 18% cheaper than Gold plans on average, but they're 39% more expensive than Expanded Bronze plans.

Silver plans provide a good balance between affordable monthly premiums and out-of-pocket costs, but they stand out due to their 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 and Expanded Bronze plans: Best for young, healthy people

Low monthly rates are available under Bronze plans, but they also offer the least coverage. Bronze plans are open to everyone, but they offer lower monthly premiums than higher metal tier plans. The lower monthly rates mean reduced coverage and higher out-of-pocket costs. 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.

For 2022, Gold metal plans saw the largest increase in rates — rising over 4% since 2021 in Alabama.

Metal tier
2020
2021
2022
Change
Bronze Expanded$386$406$4163%
Silver$533$567$5792%
Gold$643$677$7054%

Premiums are for a 40-year-old adult.

Short-term health insurance in Alabama

In Alabama, residents can purchase 4 Best Short-Term Health Insurance Companies 2021 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 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 qualified Obamacare plans do. For this reason, you should carefully evaluate the policy against your health care needs before purchasing. Furthermore, 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

Currently insured?

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 Bright Health Insurance Company. However, you will only be able to get Bright Health Insurance Company if you live in one of four counties (Chilton, Jefferson, Shelby and Walker), whereas Blue Cross and Blue Shield is available throughout the state.

Cheapest health insurance plan by county

Although coverage through the Alabama health insurance marketplace varies by county, Blue Cross Select Silver was the cheapest Silver plan in each county — except for the four counties where the Silver 5000 plan is offered by Bright Health Insurance.

County name
Cheapest plan
Age 40
Couple, age 40
Couple, age 40 & child
AutaugaBlue Cross Select Silver$562$1,124$1,403
BaldwinBlue Cross Select Silver$562$1,124$1,403
BarbourBlue Cross Select Silver$562$1,124$1,403
BibbBlue Cross Select Silver$562$1,124$1,403
BlountBlue Cross Select Silver$562$1,124$1,403
BullockBlue Cross Select Silver$562$1,124$1,403
ButlerBlue Cross Select Silver$562$1,124$1,403
CalhounBlue Cross Select Silver$562$1,124$1,403
ChambersBlue Cross Select Silver$562$1,124$1,403
CherokeeBlue Cross Select Silver$562$1,124$1,403
ChiltonSilver 5000$528$1,056$1,318
ChoctawBlue Cross Select Silver$562$1,124$1,403
Show All Rows

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 $1,445 per month.

For each additional child, the average cost of a Silver health plan increases by around $288. A family of four, assuming it has two 40-year-old adults and two children, would cost an average of $1,733 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.

Family size
Average cost
Individual + child$866
Couple age 40$1,158
Family of three (adult couple and a child)$1,445
Family of four (adult couple and two children)$1,733
Family of five (adult couple and three children)$2,020

Adults are assumed to be 40 years old. Sample rates are based on the average cost for a Silver plan in Alabama.

Methodology

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 (PUF), premiums were averaged across a variety of factors such as by metal tier, by county and by 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 dataset 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.

sample

Get personalized advice. Narrow down choices based on your unique situation.


sample

Compare rates to maximize your savings. Get free quotes in an instant.


sample

Find a provider you can trust. Our experts do the hard work for you.