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How To Find the Best Health Insurance in Alabama

author-photoWritten by Preston Micalizio
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Preston Micalizio

Preston Micalizio writes insurance content for SmartFinancial. He brings three years of professional experience writing ...

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editor-photoEdited by Dan Marticio
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Dan Marticio

Dan Marticio is the content manager at SmartFinancial and has written 150+ articles across multiple insurance verticals....

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Updated November 1, 2024

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Compare multiple carriers to find the best Alabama health insurance rate for your needs. While the "Yellowhammer" State has no tax penalty for going without health insurance, health coverage can help you avoid significant medical bills and the risk of medical debt if you get injured or develop a serious illness.

Read on to learn about Alabama health insurance, the most affordable plans, the cost in some of the state's largest cities and the available health care options.

Key Takeaways

  • The average monthly cost of a benchmark Marketplace health plan is $535 in Alabama.
  • Alabama doesn’t levy any penalties or fines for not having health insurance coverage.
  • Ambetter typically offers the cheapest silver plan, though other carriers may provide lower rates depending on your location.
  • Open enrollment in Alabama lasts from November 1st to January 15th, with coverage starting on January 1st if you lock in by December 15th.
  • Alabama’s Medicaid program offers financial assistance for healthcare to qualifying individuals below a certain income level and meet other requirements.

On This Page

Expand Table of Contents

Is Health Insurance Required in Alabama?

Following the passing of the Affordable Care Act (ACA), taxpayers were legally required to enroll in health insurance covering a minimum level of essential health benefits or risk paying a federal tax penalty. As of the 2018 tax year, however, federal tax penalties no longer apply for those who go without coverage.[1] While some states still carry fines for not having health insurance coverage as a resident, Alabama is not one of them.[2]

Alabama Health Insurance Rankings

The Commonwealth Fund ranked Alabama 42 out of 51 in an analysis that took a holistic look at the health care systems in each U.S. state and Washington, D.C. Alabama notably ranked lowest in terms of income disparity and 31st, the state’s highest score, in avoidable hospital use and cost. When considering all metrics, the state ranked seventh among twelve Southeastern states, which include Arkansas, Florida and Georgia.[3]

Below is an overview of Alabama’s national rank in each of the dimensions analyzed by the Commonwealth Fund:[3]

Dimension

National Rank

Reproductive & Women’s Health

43

Access & Affordability

38

Prevention & Treatment

43

Avoidable Hospital Use & Cost

31

Healthy Lives

43

Income Disparity

49

Racial & Ethnic Health Equity

36

How Much Does Health Insurance Cost in Alabama?

AL Monthly Premium for Cheapest Plan by Metal Tier

Marketplace benchmark plans in Alabama cost $535 per month on average, which is more expensive than the nationwide average of $497 per month. On average, Alabama residents pay a monthly premium of $386 for the lowest-cost bronze plan available in the state, $523 for the lowest-cost silver plan and $607 for the lowest-cost gold plan.[4]

Cheapest Health Insurance Options in Alabama

Alabama residents will typically find bronze-tier Marketplace plans have the cheapest monthly premiums for health coverage, as they exchange lower monthly costs for higher deductibles, copays and coinsurance. However, if you require frequent medical care, you may be better off paying the higher premium on a gold or platinum plan so you can reduce your out-of-pocket cost each time you receive a medical service.

health insurance tiers

Plans are often divided into health maintenance organization (HMO) plans or preferred provider organizations (PPO) plans. While HMOs typically have a lower monthly premium than PPOs, they often have reduced benefits. For example, an HMO may require a referral from your primary care doctor to see a specialist and you will likely not receive any coverage for out-of-network care that is nonemergency-related.

What Is the Average Cost of Health Insurance in Alabama by City?

Below, we’ll review the median monthly rates across all metal tiers for individual health insurance plans for 30-year-olds making $40,000 per year in five major cities in Alabama before considering premium tax credits.[5]

City, Zip Code

Quote

Huntsville, 35810

$584.52

Birmingham, 35242

$553.13

Montgomery, 36117

$537.14

Mobile, 36695

$491.14

Tuscaloosa, 35405

$458.09

AL Median Monthly Rates in Major Cities

Which Health Insurance Companies Are the Most Affordable in Alabama?

Ambetter offers Alabama's most affordable health insurance plans in the silver tiers. Depending on where you live, some plans may be cheaper, such as Blue Cross Blue Shield (BCBS), which serves 90% of healthcare plans in the state. In addition, BCBS is the only carrier to offer PPO plans in the state.[6]

Below is an overview of Alabama health insurers that sell health insurance silver plans that cost below $700 for 40-year-old individuals.[6]

Health Insurance Company

Cost Range

Ambetter

$496 to $621

UnitedHealthcare

$529 to $643

Blue Cross Blue Shield

$543 to $693

When Is Open Enrollment for Health Insurance in Alabama?

Alabama residents can enroll in a health insurance Marketplace plan via HealthCare.gov during the designated open enrollment period from November 1 to January 15. To guarantee coverage starting January 1, choose your health insurance plan by December 15.[7]

Specific qualifying life events may initiate a special enrollment period, enabling you to enroll outside the open enrollment timeframe. These events include relocating to a new area, getting married, having children or losing employer-sponsored health insurance. Following most qualifying events, this special enrollment period generally spans 60 days before or after.[8]

What Types of Health Insurance Are Available in Alabama?

Some of the major types of medical insurance you can purchase in Alabama include the following:

How To Get Health Insurance in Alabama

Collecting health insurance quotes to compare individual or family health insurance policies is crucial to getting the best deal. Ideally, you should seek quotes from at least three to five insurance providers to see how varied your options are. Collecting these quotes one by one can take a lot of time and become tedious, but you can speed things up by using an insurance marketplace such as SmartFinancial.

After you answer a brief questionnaire, we’ll connect you with a licensed insurance agent to help you find affordable health plans that suit your unique needs. Click here to get a free Alabama health insurance plan quote today!

Get a Free Quote for Alabama Health Insurance Today!

FAQs

Is health insurance expensive in Alabama?

Yes, on average, the cost of health insurance Marketplace plans in Alabama are higher than the national average, with benchmark plans costing $38 more monthly in 2025.[4]

Is Medicare available in Alabama?

Yes, you can enroll in Original Medicare or Medicare Advantage plans in Alabama if you meet the eligibility requirements.

Have health insurance rates gone up in Alabama?

No, the average benchmark premium in Alabama decreased by $62 between 2022 and 2025.[4]

What happens if I don’t sign up for health insurance in Alabama?

You won’t be fined for not having health insurance in Alabama but any medical bills will need to be paid out of pocket if you don’t have coverage. If you don’t enroll in a plan, you’ll need to wait for the next open enrollment period (November 1 to January 15) unless you qualify for a special enrollment period.[7]

Is there access to free health care in Alabama?

You won’t be fined for not having health insurance in Alabama but any medical bills will need to be paid out of pocket if you don’t have coverage. If you don’t enroll in a plan, you’ll need to wait for the next open enrollment period (November 1 to January 15) unless you qualify for a special enrollment period.[7]

Sources

  1. HealthCare.gov. “Exemptions From the Fee for Not Having Coverage.” Accessed Oct. 1, 2024.
  2. Alabama Department of Insurance. “Health Insurance Options” Accessed Oct. 1, 2024.
  3. Commonwealth Fund. “2023 Scorecard on State Health System Performance: Alabama,” Page 1. Accessed Oct. 1, 2024.
  4. KFF. “Average Marketplace Premiums by Metal Tier, 2018-2024.” Accessed Nov. 1, 2024.
  5. HealthCare.gov. “Health Insurance Plans & Prices.” Accessed Oct. 1, 2024.
  6. ValuePenguin. “Best Cheap Health Insurance in Alabama.” Accessed Oct. 1, 2024.
  7. HealthCare.gov. “Mark Your Calendar with Key Open Enrollment Dates” Accessed Oct. 1, 2024.
  8. HealthCare.gov. “Special Enrollment Period (SEP).” Accessed Oct. 1, 2024.
  9. Alabama Medicaid. “Applying for Medicaid in Alabama.” Accessed Oct. 1, 2024.
  10. Alabama Department of Public Health. “ALL Kids.” Accessed Oct. 1, 2024.
About the Author
Preston Micalizio
Preston Micalizio
Health Insurance Expert

Preston Micalizio writes insurance content for SmartFinancial. He brings three years of professional experience writing in various industries, from higher education to e-commerce. He strives to engage with the audience, provide accurate reporting and make complex subjects easily digestible.

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