Best Cheap Health Insurance in Alabama (2026)
Blue Cross Blue Shield (BCBS) sells the best health insurance in Alabama. The company's Silver plans start at $583 per month before discounts.
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Best and cheapest health insurance in Alabama
Cheapest health insurance companies in Alabama
Blue Cross and Blue Shield, UnitedHealthcare and Ambetter have the cheapest health insurance plans in Alabama, with Silver rates starting at $583 per month before discounts.
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Affordable health insurance in Alabama
Company |
Cost
| |
|---|---|---|
| Blue Cross and Blue Shield of Alabama | $583-$769 |
| UnitedHealthcare | $595-$1,124 |
| Ambetter of Alabama | $634-$774 |
| Oscar | $702-$816 |
- Blue Cross and Blue Shield has the cheapest health insurance plans for most people in Alabama, with Silver plans starting at $583 per month. But it's not the cheapest option everywhere in the state. That's because the cheapest health insurance in your city depends on what plans are available there.
- You can also get cheap insurance by choosing a lower level of coverage. A Bronze plan will save you an average of $192 per month compared to a Silver plan. The trade-off when choosing your level of coverage is that a Bronze plan will pay for less of your medical costs than a Silver plan.
Best for low deductibles: UnitedHealthcare
UnitedHealthcare (UHC) plans start to cover your medical bills faster than plans from other companies. That's because UHC's plans have lower deductibles than others in the state.
On average, a Silver plan from UnitedHealthcare has a $4,000 deductible. That means you'll pay the first $4,000 of your medical bills before your coverage starts to pay. On average, Silver plans in Alabama have a $4,849 deductible.
Best health insurance companies in Alabama
Blue Cross Blue Shield is the best overall health insurance company in Alabama.
BCBS of AL has a perfect 5-star rating for member experience from HealthCare.gov. That means its members are usually happy with the service they get from the company. BCBS has an overall rating of 4 stars in Alabama, the highest in the state.
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Best-rated health insurance companies in Alabama
Company |
ACA rating
|
VP rating
|
|---|---|---|
| Blue Cross and Blue Shield of Alabama | ||
| Ambetter of Alabama | ||
| UnitedHealthcare | ||
| Oscar | N/A |
Why Blue Cross Blue Shield is the top insurance company in AL
- High ratings: Blue Cross and Blue Shield of Alabama scores well for customer satisfaction and plan quality and management, according to HealthCare.gov. In addition, BCBS gets significantly fewer complaints than an average company its size.
- Popular and affordable: Blue Cross and Blue Shield is the most popular medical insurance company in Alabama, selling more than three-fourths of all individual and family plans in the state. It's also the cheapest health insurance company for most people.
- Sells PPOs, which let you see more doctors: 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.
Blue Cross and Blue Shield of Alabama is also taking steps to make it easier to get certain medical care in 2026 by changing its prior approval process. That means if your BCBS insurance plan requires you to get approval for certain medical care, the process should be easier and clearer going forward. This hopefully means it will be easier and faster to get medical care if you have a Blue Cross and Blue Shield plan.
Ambetter of Alabama: Best for overall low medical costs
Ambetter may not have the cheapest health plans in Alabama, but the company is a good choice if you need a lot of medical care. That's because Ambetter has the lower out-of-pocket maximums in Alabama.
On average, if you buy a Silver plan in Alabama, you'll pay up to $9,304 per year toward your medical bills. A Silver plan from Ambetter will cost you slightly less, at up to $8,650 per year, on average. That's still a large amount, but if you need expensive or complex medical care, choosing a plan with a low out-of-pocket maximum helps you save money over time.
What's the cost of health insurance in Alabama?
Health insurance in Alabama costs an average of $691 per month if you pay full price or could cost about $121 per month if you qualify for discounts based on your income.
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- Higher plan tiers have more expensive rates, but you pay less when you visit the doctor. Lower plan tiers have cheaper 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 medical insurance as you get older. Rates rise slowly in your 20s and 30s 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.
Health insurance discount changes in Alabama for 2026
Alabama residents are expected to pay around $121 per month for marketplace coverage on average if they qualify for discounts based on their income.
That's $75 more per month than the price after subsidies in 2025, which was about $46 per month. That's because discount levels are likely changing in 2026. Congress could still renew the "enhanced subsidies" that shoppers have gotten for the last five years, but if they don't, discounts won't be as good next year.
Health insurance rates in Alabama after subsidies (2025 vs. 2026)
Income | 2025 rate | 2026 rate | Difference |
|---|---|---|---|
| $30,000 | $49 | $155 | 216% |
| $40,000 | $154 | $287 | 86% |
| $50,000 | $283 | $415 | 47% |
| $60,000 | $423 | $498 | 18% |
| $70,000 | $496 | $645 | 30% |
Average cost after subsidies for a single 40-year-old with a Benchmark Silver plan.
- Who's eligible? To get subsidies, you have to make between $15,650 and $62,600 as a single person or between $32,150 and $128,600 as a family of four. If you can get Medicaid, you can't get subsidies.
- Are subsidies changing? Subsidies might be changing in 2026. Congress could vote to extend the current subsidies or let them expire, which means discounts will roll back to their lower, pre-2021 levels. Congress could also decide to restructure the program entirely, which means there might be new eligibility requirements.
- How much can you save? The less you earn, the higher your discount. However, it's unclear at this point exactly what subsidies will look like in 2026. Savings amounts could change depending on what Congress decides to do with the program.
- What will you pay? Your exact level of savings depends on how much you make and what plan you use. But you can use ValuePenguin's subsidy calculator to get an idea of how much you could save if you get discounts.
Low-cost Alabama health insurance plans by city
Blue Cross and Blue Shield offers the cheapest health insurance in Alabama's major cities, including Huntsville, Birmingham, Montgomery and Mobile.
It's always a good idea to compare all plan options in your area, though. Just because one is cheap doesn't mean it's the right plan for you.
Cheapest health insurance plans by AL county
County | Cheapest plan | Monthly rates |
|---|---|---|
| Autauga | BCBS of AL Statewide Silver EPO | $620 |
| Baldwin | Ambetter of Alabama Standard Silver | $634 |
| Barbour | Ambetter of Alabama Standard Silver | $634 |
| Bibb | BCBS of AL Saver Silver EPO | $625 |
| Blount | BCBS of AL Saver Silver EPO | $625 |
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 typically 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, averaging $796 per month, 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 plans cost an average of $691 per month before discounts.
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 on medical care 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. |
Bronze plans have cheap rates, averaging $499 per month, but you'll pay a large portion of your bill when you visit the doctor.
Consider a Bronze plan if you don't think you'll need a lot of health care in the coming year. 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 cost $416 per month, on average, in Alabama.
Only people younger than 30 and people who qualify for a special hardship exemption can buy a Catastrophic plan.
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. These plans have high deductibles, which means your plan won't cover most things until you pay $10,600 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.
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
You may qualify for extra discounts, called cost-sharing reductions (CSRs), 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 combine cost-sharing reductions with subsidies to get cheap monthly rates and low-cost medical care.
How to qualify for CSRs:
- Choose a Silver plan. You can only get cost-sharing reductions by choosing a Silver health insurance plan.
- Meet the income requirements. You have to make between $15,650 and $39,125 per year as a single person or between $32,150 and $80,375 per year for a family of four to get cost-sharing reductions.
Medicaid: Free health insurance if you qualify
To qualify for Medicaid in Alabama, you need to earn a low income and meet another qualifying condition.
Ways to qualify for Medicaid 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.
If you're disabled and over the age of 65, you can qualify for Medicaid with an income of up to about $34,800 per year.
A pregnant woman in Alabama qualifies for Medicaid if she makes around $22,800 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 completely sure you qualify.
Alabama has not expanded Medicaid eligibility
It can be difficult to qualify for Medicaid in Alabama because it's one of the 10 states that have not expanded Medicaid eligibility to everyone who earns a low income.
About 93,000 uninsured adults in Alabama don't qualify for Medicaid and earn too little to get discounts on a regular health insurance plan.
Are health insurance rates going up in Alabama?
The cost of medical insurance in Alabama went up by an average of 25% between 2025 and 2026.
Catastrophic plans had the biggest increase, at 40%. Silver plans, the most popular plan level in Alabama, went up by 23% between 2025 and 2026. Since 2022, Silver plans have gone up in price by an average of 19%.
Catastrophic
Bronze
Silver
Gold
Year | Cost | Change |
|---|---|---|
| 2024 | $323 | – |
| 2025 | $298 | -8% |
| 2026 | $416 | 40% |
Monthly costs are for a 40-year-old.
Catastrophic
Year | Cost | Change |
|---|---|---|
| 2024 | $323 | – |
| 2025 | $298 | -8% |
| 2026 | $416 | 40% |
Monthly costs are for a 40-year-old.
Bronze
Year | Cost | Change |
|---|---|---|
| 2022 | – | |
| 2023 | $425 | – |
| 2024 | $452 | 6% |
| 2025 | $428 | -5% |
| 2026 | $499 | 17% |
Monthly costs are for a 40-year-old. Expanded Bronze plans are included in 2024, 2025 and 2026 averages, when they're offered.
Silver
Year | Cost | Change |
|---|---|---|
| 2022 | $579 | – |
| 2023 | $591 | 2% |
| 2024 | $584 | -1% |
| 2025 | $564 | -4% |
| 2026 | $691 | 23% |
Monthly costs are for a 40-year-old.
Gold
Year | Cost | Change |
|---|---|---|
| 2022 | $705 | – |
| 2023 | $718 | 2% |
| 2024 | $727 | 1% |
| 2025 | $664 | -9% |
| 2026 | $796 | 20% |
Monthly costs are for a 40-year-old.
Why is health insurance expensive in AL for 2026?
Health care costs keep rising, and that is pushing up health insurance rates in 2026.
When the cost for medical care rises, health insurance companies pay more when their customers go to the doctor, get treatments or fill prescriptions. To make up for the extra costs, companies raise rates for everyone.
Additionally, thanks to growing demand, insurance companies are spending more on pricey GLP-1 drugs like Ozempic and Wegovy, which causes rates to go up.
Marketplace subsidy changes could also lead to higher rates in 2026. Since 2021, people with low incomes have benefited from extra discounts called "enhanced subsidies." But if Congress doesn't act, those bigger discounts will expire at the end of 2025. This means that the discounts you could get next year won't be as high, leading to a more expensive plan.
How to prepare for the 2026 rate increases
- Get quotes from other companies. When you shop on HealthCare.gov, you can see all the companies and plans in your area. Take the time to get quotes from the other companies and see if there's a cheaper plan that works for you. Just make sure your doctors are in the plan's network before you commit.
- Consider a lower-tier plan. A lower-tier plan like Bronze can help you get a lower monthly rate. But it's not a perfect solution because you will have to pay more when you go to the doctor. If you think a Bronze plan could still work for you, think about opening a health savings account (HSA) to help you save for medical costs. HSAs are a perk that's new to Bronze plans for 2026.
- See if you get discounts. Discounts might not be as good in 2026, but they'll still be available for people with low incomes. If you don't make much or you've had a recent income change, check to see if you can get subsidies. It's one of the easiest ways to get a cheaper plan.
- Check if you can get Medicaid. It's not easy to get Medicaid in Alabama, but it doesn't hurt to check if you qualify. If you can get Medicaid, your health care will likely be cheap or free.
Plans that you get on HealthCare.gov 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 children
- 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 $343 per month for coverage for each child under the age of 21.
Adult coverage costs $691 per month on average. That means a family of four in Alabama with two 40-year-old parents and two children pays an average of $2,069 per month for coverage before discounts.
Family size | Average monthly cost |
|---|---|
| Individual | $691 |
| Individual and child | $1,034 |
| Couple | $1,382 |
| Family of three | $1,725 |
| Family of four | $2,069 |
Averages based on a Silver plan for 40-year-old adults and children who are under age 21.
Short-term health insurance in AL
Short-term health insurance plans in Alabama can last for up to three months, in most cases.
If you have a short-term health plan you bought before Sept. 1, 2024, it 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
Health insurance enrollment by income level in Alabama
More than half of people in Alabama with a plan from HealthCare.gov make less than $20,783 per year.
That's especially concerning when you consider that people with lower incomes are going to be more heavily impacted by rate increases and discount changes than people with higher incomes. When budgets are tight, you have less wiggle room to handle cost changes.
Enrollment by income
Income | % of total enrollment |
|---|---|
| Less than $15,060 | 1% |
| $15,060 to $20,783 | 51% |
| $20,784 to $22,590 | 12% |
| $22,591 to $30,120 | 15% |
| $30,121 to $37,650 | 8% |
Enrollment in 2025 marketplace plans made during the 2024-2025 Open Enrollment period. Total may not be 100% due to rounding
Frequently asked questions
What is the best health insurance in Alabama?
Blue Cross and Blue Shield has the best health insurance in Alabama. Plans are popular and give you access to a wide network of doctors and hospitals. Plus, the company gets significantly fewer complaints than an average company its size, according to the NAIC.
Who has the most affordable health insurance in Alabama?
Blue Cross and Blue Shield of Alabama has the cheapest health insurance in Alabama, with rates starting at $583 per month for a Silver plan. 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 $691 per month before discounts on average. Your rates depend on the company you pick, where you live, how old you are, how many people you need to insure, the plan level you choose and whether or not you smoke or use tobacco.
Can I get health insurance for $100 a month in AL?
You may be able to get health insurance for $100 per month in Alabama, but only if you have a low income and you get subsidies. Otherwise, health insurance costs $691 per month on average for a 40-year-old with a Silver plan. A 21-year-old with the same coverage pays an average of $541 per month.
Does Alabama have health insurance subsidies?
You can get federal health insurance subsidies in Alabama, but the details of the discounts could change in the coming months as Congress debates the future of the program. Alabama doesn't have its own subsidy program.
Methodology
Alabama health insurance rate data for 2026 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.
Rates
Rates are based on a 40-year-old with a Silver plan, unless otherwise noted. Rates for Bronze plans include regular and Expanded Bronze plans for 2024, 2025 and 2026, when the plans are available. Your costs and plan options will vary; plans aren't always available in all parts of a state or county.
Subsidies
Rates after subsidies are estimates for a 40-year-old with a Benchmark Silver plan and are based on how subsidies were structured before 2021. Prices are calculated using KFF's rates for full-price Benchmark plans, federal poverty levels (FPLs), IRS rules about premium tax credits and Congressional reports about expanded tax credits. The total cost in the state uses calculated rates by income, which are weighted using CMS data on the incomes of those who purchased plans during last year's open enrollment. The median was used for each income range. Unknown incomes were excluded from the calculations. Incomes of 100% of the federal poverty line and 500% of the federal poverty line were assumed for enrollees who earn less than 100% FPL and more than 500% FPL, respectively. Information about state subsidies, when available, was sourced from state marketplaces.
Ratings
ValuePenguin's experts rank companies based on cost, coverage options, customer satisfaction and unique value. Ratings are out of 100 possible points. ACA ratings show how the company performs in Alabama for medical care, member experience and plan administration. This 2026 plan quality data from CMS is based on data from last year. Ratings are not available for new plans or plans with low enrollment.
More sources
Enrollment trends, including plan selections by tier and enrollment by income, are from CMS data for the 2025 open enrollment period.
Info about why health insurance companies are raising rates is from the Peterson-KFF Health System Tracker. Other sources include KFF, the National Association of Insurance Commissioners (NAIC) and S&P Global Capital IQ.
Insurance Writer
Cate Deventer is a ValuePenguin writer who specializes in health insurance, Medicare, auto and home insurance. She's been a licensed insurance agent since 2011.
She started her insurance career working as a customer service agent for State Farm. She later moved to an independent agency, where she worked with several insurance companies and hundreds of clients. She quoted policies, filed claims and answered insurance questions. In 2021, she pivoted her career and began writing about insurance for Bankrate. She moved to ValuePenguin in 2023 and began writing about health insurance and Medicare.
Cate has a passion for helping readers choose insurance to fit their needs. She enjoys knowing that her research and knowledge help people choose insurance products that make a positive difference in their lives.
How insurance helped Cate
Cate used her health insurance knowledge to navigate a surgery in 2023. Understanding how her policy worked let her focus on recovery instead of worrying about bills.
Expertise
- Health insurance
- Medicare & Medicaid
- Auto insurance
- Home insurance
- Life insurance
Credentials
- Licensed Life, Accident & Health Insurance Agent
- Licensed Property & Casualty Insurance Agent
Referenced by
- CBS
- NBC
- Wall Street Journal
Education
- BA, Theatre, Purdue University
- BA, English, Indiana University
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.
