Margaret Huntley Last Updated On: August 1, 2023

Health Insurance in Alabama: How to Get the Coverage You Need

No matter what state you call home, having a quality health insurance plan is vital to your personal wellbeing. Health insurance protects you from additional financial stress during times where your physical or mental health may be strained. 

For those in Alabama or those considering moving to the Yellowhammer State, this page is for you. You’ll find everything you need to know about health insurance in Alabama so you can feel in control of your health. 

Keep reading for more info.

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Table of Contents

How Alabama Health Insurance Rates Are Calculated

Even though it would be wonderfully simple to have a singular price point that encompassed all health insurance plans in the state, that’s just not how things work. The cost of health insurance in Alabama depends on a number of factors, and location is just one of them.  These factors will also affect the cost of your health insurance: 
  • Age
  • Current health status
  • Whether you smoke
  • Number of dependants on policy
  • Marital status
  • Type of coverage
While we can’t provide a one-size-fits-all estimate on the cost of your health insurance, what we can do is provide you with the average price Alabama residents pay for their health insurance plans. This will give you a baseline of what kinds of prices to expect when searching for health coverage in Alabama. 

The Average Cost of Health Insurance in Alabama

The average cost of a bronze level* health insurance plan for an individual in Alabama is $642 per month as of 2022.  

*A bronze health insurance policy is a middle-ground policy in which there are lower monthly premiums and higher out-of-pocket costs. 

That means that Alabama’s average cost is higher than that of the average American. The average forty-year-old American can expect to pay around $456 per month for health insurance. 

In terms of families, the average cost of a Silver plan for a family of three (two adults and one child) is $1,475 per month. 

Again, not all health insurance plans are alike. If you have a plan with less coverage, then this cost will be lower. And, of course, a plan with comprehensive coverage will cost more. 

But that doesn’t mean you need to spend an arm and a leg (not literally, we promise!) to get health insurance in Alabama. Keep reading for more details on how to find affordable health insurance in Alabama—and yes, it does exist!

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Types of Alabama Health Plans

As is the case with all insurance, finding the best health insurance in Alabama boils down to finding the policy that suits your individual/family health needs. Because each person has their own requirements of a health care plan, insurance companies offer a wide range of policies.

Let’s level set here and go through the basics about the standard types of health insurance available in Alabama:

  • Health Maintenance Organization (HMO): These plans have a low premium and a low deductible. They require you to find care within your health care network, and to have a primary care physician.
  • Preferred Provider Organization (PPO): These plans have higher premiums and higher deductibles in order to offer more coverage. They allow you to go outside the healthcare network and do not require a primary care physician. 
  • Point of Service Plan (POS): These are a more flexible version of HMOs with slightly higher premiums and deductibles. They allow you to go outside of the health care network at an additional expense. They do require you to have a primary care physician. 
  • High Deductible Health Plan (HDHP): These plans have lower premiums and very high deductibles. Their requirements in regard to the health care network and primary care physicians will vary. 
  • Exclusive Provider Organization (EPO): These plans have relatively affordable premiums and low deductibles. They require you to stay within your network, but do not require a primary care physician. 

That’s a lot to take in, we know. But speaking to a qualified insurance agent will help you to understand which type of health insurance suits you best, because you deserve to have low cost health insurance in Alabama that actually meets your needs. 

Or, simply contact ConsumerCoverage today and we’ll get you access to free quotes and insurance support today. We’ve got you covered.

What to Know About Medicare and Medicaid in Alabama

Now that you know the different types of Alabama health plans, it’s time to dive a little deeper into other options that might be available to you. 

Medicare and Medicaid are two types of government-funded health insurance plans available throughout all 50 states. Some Alabama residents will be eligible for these types of health coverage.

Here’s what you need to know about how these health insurance options in Alabama work: 

  • Medicare:
    • Must be 65 years of age or older to qualify (or have a specific health condition like End-Stage Renal Disease).
    • Coverage varies depending on the type of Medicare you select.
    • Typically includes hospital services at no additional expense.
    • There are four parts to Medicare and these include medical services, prescription drug coverage, and other supplemental benefits at a cost. You can choose which parts you opt for.
  • Medicaid:
    • To qualify, an individual has to be making less than the state-determined maximum.
    • In Alabama, those making less than $1,153 per month qualify for Medicaid.
    • Extenuating circumstances such as teenage pregnancies or disabilities also factor into an individual’s eligibility.
    • Alabama Medicaid benefits include:
      • Doctor services
      • Eye Care
      • Dentistry
      • Family planning
      • Prescription drugs
      • Mental health services

You can’t always control your health, but you can ensure you have access to the best health insurance in Alabama in a matter of minutes by signing up for a plan that fits your needs.

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How to Get Health Insurance in Alabama

Health insurance plans can be found in a few different ways in the Cotton State. 

  • Employer health insurance: You may have access to health insurance coverage through your work or through your partner’s work. More details can be found with the employer. This is typically a very affordable option because employers often contribute to some or all of the premium costs for employees and their dependents.
  • Private health insurance: You can browse health insurance plan options through the state Marketplace. There are Gold, Silver, and Bronze plans to choose from: 
    • Gold and Silver typically have the highest monthly premiums but lower deductibles, copays, and coinsurance.
    • Gold is the top tier of health insurance and usually covers the most out-of-pocket costs, which is useful for those expecting to make frequent use of their health insurance coverage and rack up costs.
    • Silver is a great option for those that want balanced costs and coverage.
    • Bronze offers the lowest rates, but also the least amount of coverage and you’ll have to pay more before your insurance coverage kicks in.
    • If you’re young and healthy, you might be able to get away with a low-cost plan. But if you plan on using your health insurance frequently, it might be worth the higher monthly premiums to save money on all other costs and get more coverage.
  • Medicare: If you’re already receiving Social Security benefits when you turn 65, you’ll auto-qualify for Medicare and receive your card in the mail. But if you think you qualify, simply contact Social Security.
  • Medicaid: You can call your state to get coverage or get access through the Healthcare Marketplace.

Note that depending on your income and eligibility, you may qualify for subsidies that can help cover the cost of health care plans.

The good news is that you have plenty of options when it comes to your health care, and that you can update your coverage yearly or more frequently if you have a special qualifying life event, like a marriage, birth, divorce, etc. 

Health insurance rates and plans can be updated annually by carriers, so it’s important to review your coverage often to ensure it’s still the right choice for you. 

How to Save on Health Insurance Plans in Alabama​​

Health insurance coverage can be costly, but there are still ways to find savings and put a little money back in your pocket—without sacrificing coverage.
  • Find out if you qualify for any government subsidies
  • See if your healthcare costs are tax deductible
  • Shop around and compare quotes
  • Work with an independent insurance agent to find the best rates
  • Negotiate medical costs, such as receiving a discount for paying in advance 
  • See if generic versions of prescription drugs are available and covered
  • Reduce unnecessary medical visits when possible
  • Consider a higher deductible for lower monthly premiums 
Most importantly, review your coverage annually and switch plans if needed. You want to avoid “setting it and forgetting it”, as this is an easy way to spend more money than you need to. 

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Find the Best Health Insurance in Alabama​

Health insurance in Alabama can feel overwhelming, but it doesn’t have to be. Taking a few minutes to find the best health insurance plan for you can put you back in the driver’s seat of your own health and get you the coverage you need. 

The best health insurance for you won’t be the same as for anyone else. You best know the coverage you need and the budget you can afford. Finding the best health insurance for you will be the plan that suits your needs, and it might not be as simple as the plan with the lowest rates. 

Whether you’re looking for a plan with extensive health benefits, or you’re on the hunt for the cheapest health insurance in Alabama, we’ve got your back. 


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