Alabama Health Insurance Plan Options

Alabama Health Insurance Guide

From the Appalachian foothills to the Gulf Coast beaches, Alabama offers a warm climate, rich cultural history, and affordable living. But protecting your health and finances here starts with understanding your health insurance options.

As of 2025, about 1 in 10 Alabama residents remain uninsured—a persistent challenge driven in part by the state’s decision not to expand Medicaid. If you’re among those without coverage, here’s what you need to know about getting insured in Alabama.

Health Insurance Options in Alabama

Alabama offers a variety of health insurance options based on your age, income, employment status, and household size. Here are the most common:

Employer-Sponsored Insurance

Nearly half of Alabama residents receive health coverage through their employers. If your workplace offers insurance, this is typically the most affordable and straightforward option.

ACA Marketplace Plans

The Affordable Care Act (ACA) allows individuals and families to buy health insurance through federal or state Marketplaces. These plans offer essential health benefits, free preventive care, and protection for preexisting conditions.

If you don’t have employer coverage, you may qualify for subsidies to lower your premiums. Use our ACA Subsidy Calculator to check your eligibility.

Starting this year, the Centers for Medicare & Medicaid Services (CMS) is requiring income verification to confirm eligibility for premium subsidies. CMS will reduce ACA subsidies by $5/month for individuals automatically re-enrolled in fully subsidized plans without verified eligibility.

Marketplace Metal Tiers:

• Bronze: Lowest monthly premiums, highest out-of-pocket costs. Good for those who use little healthcare.
• Silver: Balanced premiums and cost-sharing. Eligible for cost-sharing reductions (CSRs).
• Gold: Higher premiums, lower out-of-pocket costs. Ideal for those with regular medical needs.
• Platinum: Not typically offered in Alabama; highest premiums, lowest cost-sharing.

Medicaid

Alabama Medicaid offers free or low-cost coverage to eligible low-income residents, including children, pregnant women, seniors, and individuals with disabilities. However, Alabama has not expanded Medicaid under the ACA, leaving an estimated 127,000 residents in a “coverage gap.”

Short-Term Health Plans

Short-term medical (STM) plans offer temporary health coverage and can help individuals who are between jobs, recently lost employer coverage, waiting for ACA or Medicare eligibility, or need protection during a coverage gap.

These plans are not ACA-compliant and may deny coverage for pre-existing conditions or exclude services like maternity, mental health, or preventive care.

STM Plan Enrollment: Available year-round, and coverage can begin as soon as the next day after approval.

Student Health Insurance

College students in Alabama can:

• Stay on a parent’s plan until age 26
• Enroll in a school-sponsored plan
• Apply for an ACA Marketplace plan

Students may also qualify for Medicaid, CHIP, catastrophic plans, or short-term coverage, depending on income and other factors.

Children’s Health Insurance Program (CHIP)

ALL Kids is Alabama’s CHIP program, providing low-cost health coverage to uninsured children under 19 in families earning too much to qualify for Medicaid. It covers doctor visits, immunizations, prescriptions, hospital stays, and more.

Medicare

Medicare plans are available to residents age 65+ and younger individuals with qualifying disabilities. Options include:

• Medicare Advantage (Part C): Private plan alternative to Original Medicare; includes extra benefits and cost protections.
• Prescription Drug Plans (Part D): Help pay for medications and many vaccines.
• Medicare Supplement (Medigap): Covers out-of-pocket costs not paid by Medicare Part A and Part B.

Alabama has over 1 million Medicare beneficiaries, with around 473,000 enrolled in Medicare Advantage plans.

COBRA Coverage

If you’ve lost job-based insurance, COBRA allows you to continue your former coverage for up to 18 months—but you’ll be responsible for the full premium.

Enrollment Periods in Alabama

Open Enrollment for 2026 Coverage:

November 1, 2025 – January 15, 2026
Apply for, renew, or change your ACA marketplace plan during this window on HealthCare.gov.

Special Enrollment Period (SEP):

You may qualify outside of Open Enrollment if you experience a qualifying life event, such as:

• Job loss
• Marriage or divorce
• Birth or adoption
• Relocation
• Significant income change

Enrollment typically must occur within 60 days of the qualifying event.

Health Insurance Providers in Alabama

As of 2025, these insurers typically offer ACA-compliant individual and family plans through HealthCare.gov:

• Blue Cross and Blue Shield of Alabama
• UnitedHealthcare
• Cigna Healthcare (formerly Bright HealthCare) (Note: Plan availability may change annually.)

Plan options may vary by ZIP code or county.

Understanding Health Insurance Costs

When evaluating health plans, consider these common cost components:

• Premium: Monthly payment to maintain coverage
• Deductible: Amount you pay before insurance covers costs
• Copayment (Copay): Fixed fee for doctor visits or prescriptions
• Coinsurance: Your percentage of costs after meeting the deductible
• Out-of-Pocket Maximum: The most you’ll pay annually for covered services
• In-Network vs. Out-of-Network: In-network providers help avoid surprise bills and keep costs lower

Still confused? This health insurance glossary breaks down key terms and helps you feel confident when choosing a plan.

Bottom Line

Alabama residents have several options for health insurance—through employers, the ACA Marketplace, public programs like Medicaid and Medicare, or state offerings like ALL Kids. Although the lack of Medicaid expansion poses a barrier for some, subsidies and enrollment windows make it possible for many to secure coverage.

Need help finding the right plan? Use our ACA Subsidy Calculator or speak with a licensed insurance agent to compare plans and get expert guidance.