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
Individuals and families without access to job-based coverage can purchase ACA marketplace plans through the federally run HealthCare.gov exchange.
Subsidies may be available to help reduce premium costs, especially if your income falls within qualifying thresholds. Use our [ACA Subsidy Calculator] to check your eligibility.
Marketplace Metal Tiers:
- Bronze: Lowest monthly premiums, but 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.
Metal Tier | Insurance Pays | You Pay |
---|---|---|
Bronze | 60% | 40% |
Silver | 70% | 30% |
Gold | 80% | 20% |
Platinum | 90% | 10% |
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.”
Student Health Insurance
College students in any state have multiple health insurance options, including staying on a parent’s plan until age 26, enrolling in a school-sponsored plan, or applying for coverage through the ACA Marketplace. Depending on your income and location, you may also qualify for Medicaid, CHIP, or low-cost catastrophic or short-term plans—making Alabama student health insurance accessible and flexible for a wide range of needs.
Children’s Health Insurance Program (CHIP)
ALL Kids is Alabama’s CHIP program, offering low-cost coverage to uninsured children under age 19 in families earning too much to qualify for Medicaid. Services include well-child checkups, immunizations, hospital care, and more.
Medicare
Medicare plans are available to residents age 65+ and younger individuals with qualifying disabilities. Plan options include:
- Note: Medicare Advantage (Part C) is not offered in Alaska
- Medicare Advantage is an alternative to Original Medicare offered by private insurers to those enrolled in Parts A and B. These plans often include extra benefits and cost protections but typically require using a specific network of providers.
- Prescription Drug Plans (Part D)
- Medicare Part D provides prescription drug coverage for anyone with Medicare, helping pay for medications and many vaccines. Offered by private insurers, these plans vary in cost and coverage and can be joined during specific enrollment periods.
- Medicare Supplement (Medigap)
- Medicare Supplement plans, or Medigap policies, help cover the out-of-pocket costs that Medicare Part A and Part B don’t pay. Since Original Medicare (Parts A and B) lacks an out-of-pocket maximum, these plans can limit your expenses for medical services.
Alabama has over 1 million Medicare beneficiaries, with around 473,000 enrolled in Medicare Advantage plans.
COBRA Coverage
If you’ve recently lost job-based insurance, COBRA allows you to continue your employer’s coverage for up to 18 months—though you pay the full premium yourself.
Short-Term Health Plans
Short-term medical plans are available in Alabama and follow federal rules. Unlike ACA plans, these plans are not regulated by the ACA, meaning they don’t provide comprehensive health insurance and can deny you coverage based on a preexisting condition.
However, short-term health insurance may be ideal for situations where you’re temporarily uninsured, such as losing coverage from a former job or waiting for coverage to begin at a new job.
Enrollment Periods in Alabama
Open Enrollment for 2025 Coverage:
November 1, 2025 – December 15, 2025
During this time, you can apply for or renew a marketplace plan on HealthCare.gov.
Special Enrollment Periods (SEP):
You may qualify for enrollment outside of the OEP if you experience a qualifying life event, such as:
- Job loss
- Marriage or divorce
- Birth or adoption
- Moving to a new ZIP code
- Significant change in income
You generally have 60 days from the event to enroll.
Health Insurance Providers in Alabama
As of 2025, these insurers typically offer ACA-compliant individual and family plans in Alabama 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 county, so it’s important to enter your ZIP code when shopping for coverage.
Understanding Health Insurance Costs
When evaluating health insurance plans, consider the following common costs:
- Premium: Your monthly payment for coverage.
- Deductible: What you pay out-of-pocket before your plan starts covering services.
- Copayment (Copay): Fixed amount you pay for doctor visits or prescriptions.
- Coinsurance: Percentage of costs you share with your insurer after meeting the deductible.
- Out-of-Pocket Maximum: The most you’ll pay in a year for covered services.
- In-Network vs. Out-of-Network: Using in-network providers saves money and avoids surprise bills.
Understanding health insurance doesn’t have to be overwhelming. This glossary offers clear definitions of key terms—from agents to costs like copayments, coinsurance, and deductibles—to help you make confident coverage decisions.
Bottom Line
Alabama residents have several options for health insurance—whether through an employer, the ACA marketplace, Medicaid, Medicare, or other programs like ALL Kids or COBRA. While the state’s lack of Medicaid expansion limits options for some, subsidies and special enrollment periods can help many find affordable coverage.
Need help navigating your options? Use our [Alabama Plan Comparison Tool] or speak with a licensed insurance agent to find the right plan for your budget and health needs.