Cheapest Health Insurance In Alabama For 2023


WRITTEN BY: Craig Sturgill

UPDATED: SEPTEMBER 12, 2022 | 2 MIN READ

All citizens of Alabama must obtain a standard of health insurance coverage according to the Affordable Care Act. Residents receive coverage through their job, private insurance, or programs such as Medicaid or Medicare. Below is everything you need to know about getting affordable health insurance in Alabama.

Alabama Health Insurance Demographics

Certain demographics come into play when insurers give you a quote. You may qualify for cheaper health insurance in Alabama, depending on your income and age. 

  • Average Household Income: The average household income in Alabama is $71,964. The median household income is $52,035.
  • Median Age Range: The median age in Alabama is 39.2.
  • Education: Alabama is ranked 45th in educational attainment and 41st in education quality compared to the national average.

What Type Of Marketplace Does Alabama Have?

Alabama has a federally operated health insurance exchange with the health insurance Marketplace. A decision was made against a state-run exchange, and currently, the exchange has three carriers.

How many people are insured through the Alabama Marketplace?

In 2021, 169,119 residents in Alabama enrolled in private individual market plans. There has been a 5% increase since 2014, when 97,870 people were enrolled.

Did Alabama implement the ACA’s Medicaid expansion?

Currently, there is no Medicaid eligibility expansion in Alabama. This is because they have not accepted the federal funding to expand Medicaid under the ACA.

When can you purchase ACA insurance in Alabama? 

If you are outside the enrollment period, a qualifying event is required to change coverage or enroll. The enrollment period runs from November 1st to January 15th yearly.

Types of ACA Plans In Alabama

There are a few different carriers that offer different types of plans for Alabama health insurance. Below are some great options to choose from. 

What carriers offer ACA health insurance in Alabama?

There are three insurers offering exchange plans in Alabama as of 2022:

  • United Healthcare (new for 2022; plans available in the Dothan, Mobile, and Huntsville areas)
  • Bright Health (plans available in the Birmingham area)
  • Blue Cross Blue Shield of Alabama (plans available statewide)

How Much Does Health Insurance Cost In Alabama?

​​Alabama health insurance policies are compared by metal tier to find the cheapest plans for different levels of coverage. The rates may change depending on the county, but the table shows a great starting point.

Cheapest Health Insurance By Metal Tier In Alabama

Your health insurance rates vary depending on the level of coverage you choose. The more coverage you have, the higher your premium. Below are the cheapest individual health plans in Alabama by tier.

Metal TierMonthly PremiumDeductibleMaximum Out-of-Pocket
Catastrophic$310n/a$8,550
Bronze Expanded$420$8,700$8,700
Silver$580$5,000$8,700
Gold$710$1,000$8,700

Cheapest Health Insurance By County

Location is also used to determine insurance rates. Below are the cheapest individual and family health insurance rates for the five biggest Alabama counties.

County NameCheapest PlanIndividual, Age 40Couple, Age 40Couple, Age 40 & Child
Jefferson Silver 5000$530$1,060$1,320
MadisonBlue Cross Select Silver$570$1,125$1,410
MobileBlue Cross Select Silver$570$1,125$1,410
MontgomeryBlue Cross Select Silver$570$1,125$1,410
TuscaloosaBlue Cross Select Silver$570$1,125$1,410

Are Subsidies Available In Alabama?

At the end of open enrollment for 2021, the average premium subsidies in Alabama were $672 per month. Subsidies are now larger for 2022 due to the American Rescue Plan.

Can You Purchase Off-Exchange Insurance Coverage In Alabama? 

As of 2017, individual market plans were unavailable on or off-exchange in Alabama. As of 2021, a dozen states have not expanded Medicaid, and Alabama is one of them.

Can You Purchase Short-Term Insurance In Alabama?

Short-term health insurance is available in Alabama, and monthly rates average from $112. Residents opt for short-term insurance if they are only looking for temporary insurance. Plans range from 30 days to 364 days.

Health Coverage Options For Low-Income People In Alabama

There are many excellent choices for obtaining cheap family or individual health insurance in Alabama. Low-income residents have the option to apply for Medicaid and Medicare. 

What Medicare Options Are Available In Alabama?

There are four types of Medicare Advantage plans in Alabama: (SNP) special needs plan, (HMO) health maintenance organization, (PFFS) private fee-for-service, and (PPO) preferred provider organization.

Medicaid In Alabama

To be eligible to apply for Medicaid, you have to be a resident of the state of Alabama, be low-income and also have one of the following:

  • Blind or
  • Have a disability or a family member in your household with a disability
  • Be 65 years of age or older
  • Pregnant
  • Be responsible for a child 18 years of age or younger

Cheapest Health Insurance Plans In Alabama

Plenty of cheap health insurance in Alabama will offer you great rates. There are options for low premiums with high out-of-pocket costs and vice versa.

Cheapest health plan in Alabama with low out-of-pocket maximums 

An Alabama health insurance plan with a low out-of-pocket maximum is a better option if you require a lot of medical care. Even with a high monthly premium, paying for visits to your doctor allows you to reach your out-of-pocket max sooner. An out-of-pocket maximum is typically $4,250.

Cheapest health plan in Alabama with high out-of-pocket maximums 

If you’re not someone that goes to the doctor regularly, you might opt for a plan with a low premium and high out-of-pocket maximums. High costs happen only if you have a medical emergency. The monthly premiums are roughly $244 per month, and out-of-pocket expenses are $8,250.

Cheapest health plan in Alabama with an HSA option

A Health Savings Account (HSA) is a savings account you can contribute to on a pre-tax basis. This helps save you money in the longer run. However, the money in your account can only be used for approved medical expenses, and HSAs are only attached to high-deductible health plans.

Cheapest HMO/PPO/POS health plans in Alabama 

Most health insurance plans in Alabama are Preferred Provider Organizations (PPO). They are more expensive than HMO plans but have a broader network. PPOs average $292 per month for a 40-year-old male.

FAQs

Does Alabama have affordable health care?

There are many affordable health insurances in Alabama. There is Medicare and Medicaid for low-income residents and affordable private plans.

What’s the average cost of health insurance in Alabama?

On average, health insurance costs $642 monthly per person for major medical individual health insurance.

Is it mandatory to have health insurance in Alabama?

The Affordable Care Act requires all citizens to obtain a minimum standard of health insurance coverage.

How do you qualify for Obamacare in Alabama?

Alabama uses the federally funded health insurance Marketplace, so residents use HealthCare.gov to apply.

What does Alabama Medicaid cover for adults?

Medicaid offers care from various coverages, including lab and x-ray services, dental, eye, hearing, and transplant coverage.  

How To Find the Cheapest Health Insurance In Alabama?

To find the cheapest health insurance in Alabama, you must compare rates for various coverage levels and carriers. Use our online quoting tool to get this done quickly. It makes choosing the best plan simple.