Best Cheap Health Insurance in Alabama (2025)
Blue Cross Blue Shield (BCBS) sells the best health insurance in Alabama. The company’s Silver plans start at $497 per month before discounts.
Find Cheap Health Insurance Quotes in Alabama
Best and cheapest health insurance in Alabama
Cheapest health insurance companies in Alabama
Ambetter has the cheapest health insurance in Alabama, at $490 per month before discounts.
Find Cheap Health Insurance Quotes in Alabama
Affordable health insurance in Alabama
Company |
Cost
| |
|---|---|---|
| Ambetter | $490 - $661 |
| Blue Cross and Blue Shield | $497 - $646 | |
| UnitedHealthcare | $508 - $807 |
- Ambetter has the cheapest health insurance in Alabama, but it's not the cheapest everywhere. That's because the cheapest health insurance in your city depends on the plan options that are available. For example, Ambetter is cheapest in Mobile, but Blue Cross is cheapest in Birmingham, Huntsville and Montgomery.
- You can also get cheap insurance by choosing a lower level of coverage. A Bronze plan will save you an average of $136 per month, compared to a Silver plan. The tradeoff when choosing your level coverage is that a Bronze plan will pay for less of your medical costs than a Silver plan.
Best health insurance companies in Alabama
Blue Cross Blue Shield is the best overall health insurance company in Alabama.
Best-rated health insurance companies in Alabama
Company |
Editor rating
|
ACA rating
|
|---|---|---|
| Blue Cross and Blue Shield of Alabama | 3.0 | |
| UnitedHealthcare | 2.0 | |
| Ambetter of Alabama | NA |
Find Cheap Health Insurance Quotes in Alabama
Why Blue Cross Blue Shield is the top insurance company in AL
- High ratings: Blue Cross and Blue Shield of Alabama scores well for customer satisfaction and plan quality and management according to HealthCare.gov. In addition, Blue Cross Blue Shield gets significantly fewer complaints than an average company its size.
- Popular and affordable: Blue Cross and Blue Shield is the most popular health insurance company in Alabama, selling over 90% of plans in the state. It's also the cheapest health insurance company for more than half the state.
- Sells PPOs which let you see more doctors: Blue Cross and Blue Shield of Alabama is also the only company in the state to sell PPO (preferred provider organization) plans. With a PPO, you don't need to choose a primary care doctor or get a referral to see a specialist. A PPO also lets you visit doctors outside your network. PPOs are a good choice for people who want to be able to choose their own doctor even if it means paying more.
UnitedHealthcare is the best insurance for no-deductible plans
UnitedHealthcare (UHC) offers no deductible plans across all tiers of coverage.
- Low cost: UHC's no-deductible plans are cheaper than options from Ambetter, the only other company offering them. For example, a Bronze no-deductible plan from UHC costs an average of $430 per month, but you'll pay nearly $100 more for a similar plan from Ambetter.
- Why no-deductible plans are a good choice: A no-deductible health plan will give you the plan's full benefits as soon as your coverage begins. This is great if you want cheap medical care right away, without having to pay into the plan first.
- Downside of UHC: UnitedHealthcare's main drawback is it is not well-rated in Alabama. It has a poor score for the quality of medical care, and it receives just two out of five stars overall from HealthCare.gov. Before signing up, make sure that you'll have access to doctors that you know and trust.
What's the cost of health insurance in Alabama?
Health insurance in Alabama costs an average of $564 per month if you pay full price and $55 per month if you qualify for discounts based on your income.
- Higher plan tiers have more expensive rates, but you pay less when you visit the doctor. Lower plan tiers have cheap monthly rates and pay for less when you get care. Silver health plans offer a middle ground with average rates and medium costs when you go to the hospital or get a prescription filled.
- You pay more for health insurance as you get older. Rates rise slowly in your 20s and 30s before increasing rapidly in middle age. A 60-year-old in Alabama pays more than twice as much as a 40-year-old for the same level of coverage.
- Health insurance costs drop when you start Medicare. Medicare is a type of free government health insurance for people age 65 and up or with qualifying illnesses.
Get affordable health insurance in Alabama
Alabama residents pay $55 per month for marketplace coverage on average if they qualify for discounts based on their income.
- Who's eligible? Almost everyone who buys marketplace insurance in Alabama qualifies for discounted health insurance. To qualify for discounts, you usually need to earn less than $60,240 as an individual or less than $124,800 as a family of four.
- How much can you save? Your savings depends on your household income. The less you earn, the higher your discount.
- What will you pay? More than half of all Alabama residents with Obamacare plans pay less than $10 per month for coverage. Find out how much you'll pay by entering your ZIP code and income in the ACA subsidy calculator.
Low-cost Alabama health insurance plans by city
Blue Cross and Blue Shield of Alabama offers the cheapest health insurance in Huntsville, at $582 per month on average. Blue Cross is also the cheapest company in Birmingham at $526 per month.
Ambetter offers the cheapest health insurance in Mobile, at $496 per month.
Cheapest health insurance by AL county
County | Cheapest plan | Monthly rates |
|---|---|---|
| Autauga | BCBS Blue Cross Select Silver | $542 |
| Baldwin | Ambetter Standard Silver | $509 |
| Barbour | Ambetter Standard Silver | $509 |
| Bibb | BCBS Blue Saver Silver EPO | $526 |
| Blount | BCBS Blue Saver Silver EPO | $526 |
Cheapest Silver plan with rates for a 40-year-old
Find Cheap Health Insurance Quotes in Alabama
Best health insurance by plan tier
The best health insurance plan tier for you depends on your finances and how much health care you'll need in the coming year.
Plan tiers don't have to do with the types of services and prescription drugs you have access to. In other words, a Bronze and a Gold plan may cover the same services. The difference is in how much you'll pay for these services with insurance.
Higher plan tiers have expensive monthly rates and low costs when you visit the doctor. Lower plan tiers have cheap rates, but you're responsible for a larger portion of your medical bill.
Gold plans: Best if you need ongoing care
| Gold plans pay for about 80% of your medical care. |
Gold plans have high rates, averaging $664 per month, but low costs that you're responsible for paying when you visit the doctor.
Gold plans are a good choice if you require a lot of medical care or you think you'll need a lot of care in the coming year. For example, a Gold plan is a good choice for someone undergoing chemotherapy.
Silver plans: Best for average medical needs
| Silver plans pay for about 70% of your medical care. |
Silver health plans offer a balance between average monthly rates and middle-of-the-road costs when you get medical care. That makes Silver health plans a good choice for people who have average medical needs.
Silver plans cost an average of $564 per month before discounts. They're also eligible for extra discounts on medical care if you earn a low income.
Bronze plans: Best if you're young and healthy
| Bronze plans pay for about 60% of your medical care. |
Consider a Bronze plan if you don't think you'll need a lot of health care in the coming year. Bronze plans have cheap rates, averaging $428 per month, but you'll pay a large portion of your bill when you visit the doctor. That makes Bronze plans a good choice for healthy people who want to save on their monthly rate.
You shouldn't get a Bronze plan if you're dealing with an ongoing illness or disability.
Catastrophic plans: Best to prevent financial disaster
Catastrophic plans will stop you from going deep into medical debt if you have a bad accident or get a serious illness.
Catastrophic plans have cheap rates and bare-bones coverage. Plans have high deductibles which means your plan won't cover most things until you pay $9,200 for care first.
Catastrophic plans aren't eligible for discounts. That means you can probably find a cheaper plan with better coverage if you earn a low income.
Only people younger than 30 and those who qualify for a special hardship exemption can buy a catastrophic plan.
Discounted and free health insurance in Alabama
If you live in Alabama and you earn a low income, you may qualify for free or discounted insurance.
Silver plans with cost-sharing reductions: Best if you earn a low income but can't get Medicaid
You may qualify for extra discounts, called cost-sharing reductions, if you earn a low-income and have a Silver health plan. Cost-sharing reductions help you pay for the costs you're responsible for when you visit the doctor, such as your deductible, copays and coinsurance.
You can combine cost-sharing reductions with subsidies to get cheap monthly rates and low-cost medical care.
How to qualify:
- You can only get cost-sharing reductions by choosing a Silver health insurance plan.
- You also need to meet the income requirements of making less than $37,650 per year as a single person or less than $78,000 per year for a family of four.
Medicaid: Free health insurance if you qualify
To qualify for Medicaid in Alabama, you need to earn a low income and meet another qualifying condition.
Ways to qualify for Medicaid in Alabama
- Disabled
- Pregnant
- 18 or younger
- Over the age of 65
- Diagnosed with breast or cervical cancer
- A parent or caretaker to a child 18 or younger
The amount you need to make to get Medicaid in Alabama depends on how you're eligible for the program. For example, if you qualify because you're disabled or age 65 or older, you can't earn more than about $11,500 per year as a single person or around $17,000 as a couple. You also can't have more than $2,000 in your bank account or in other assets as a single person ($3,000 for a couple).
If you're disabled and over the age of 65, you can qualify for Medicaid with an income of up to about $34,000 per year.
A pregnant woman in Alabama qualifies for Medicaid if she makes around $22,000 per year or less. Families can get coverage for children under the age of 18 with a similar income.
Medicaid income limits change each year and coverage requirements aren't always straightforward. It's a good idea to apply for Medicaid even if you're not 100% sure you qualify.
Alabama has not expanded Medicaid eligibility
It can be difficult to qualify for Medicaid in Alabama because it's one of 10 states that has not expanded Medicaid eligibility to everyone who earns a low income.
About 107,000 uninsured adults in Alabama don't qualify for Medicaid and earn too little to get discounts on a regular health insurance plan.
Are health insurance rates going up in Alabama?
The cost of health insurance in Alabama is going down by an average of 6% between 2024 and 2025. That's because more cheap health insurance plans will be available in 2025.
Tier | 2024 | 2025 | Change |
|---|---|---|---|
| Catastrophic | $323 | $298 | -8% |
| Bronze | $452 | $428 | -5% |
| Silver | $584 | $564 | -3% |
| Gold | $727 | $664 | -9% |
Monthly costs are for a 40-year-old.
Plans bought through the Alabama state marketplace have to offer 10 essential benefits.
- Outpatient care
- Emergency care
- Hospital care
- Care for pregnant women and newborns
- Services for mental health and substance use disorders
- Prescription drugs
- Laboratory services
- Coverage for babies
- Rehabilitation services and devices
- Preventive, wellness and ongoing disease services
All Alabama Obamacare plans have to cover these services. That includes Catastrophic, Bronze, Silver and Gold plans, but not short-term health insurance.
Average cost of health insurance by family size in Alabama
Alabama families pay an average of $280 per month for coverage for each child under the age of 15.
Adult coverage costs $564 per month on average. That means a family of four in Alabama with two 40-year-old parents and two children pay an average of $1,689 per month for coverage before discounts.
Family size | Average monthly cost |
|---|---|
| Individual | $564 |
| Individual + Child | $845 |
| Couple, age 40 | $1,128 |
| Family of three | $1,409 |
| Family of four | $1,689 |
Averages based on a Silver plan for 40-year-old adults and children who are under age 15.
Short-term health insurance in AL
Short-term health insurance plans in Alabama can last for up to three months, in most cases.
If you have a Short-term health plan you bought before Sept. 1, 2024, it can last for up to 364 days at a time. You can renew these plans for up to three years.
Short-term health plans are a good way to get coverage if you're not able to buy regular health insurance because you missed open enrollment and you don't qualify for a special enrollment period.
However, short-term plans have many drawbacks that make them a poor replacement for regular health insurance.
Pros of short-term health insurance in AL
Cons of short-term health insurance in AL
Frequently asked questions
What is the best health insurance in Alabama?
Blue Cross Blue Shield has the best health insurance in Alabama. Plans are popular and give you access to a wide network of doctors and hospitals. Plus, the company gets significantly fewer complaints than an average company its size according to the NAIC.
Who has the most affordable health insurance in Alabama?
Ambetter has the cheapest health insurance in Alabama, at $490 per month. However, the most affordable plan for you will depend on where you live.
How much does health insurance cost per month in Alabama?
Health insurance in Alabama costs $564 per month before discounts on average. Most Alabama residents who buy coverage on the marketplace pay an average of $55 per month because of government discounts.
Methodology
Alabama health insurance rate data for 2025 is from the Centers for Medicare & Medicaid Services (CMS) website. ValuePenguin used the CMS public use files (PUFs) to find average rates for different plan tiers, geographic locations and family sizes.
Rates are based on a 40-year-old with a Silver plan, unless otherwise noted. Other sources include S&P Global Capital IQ, NAIC (National Association of Insurance Commissioners) and the Alabama Medicaid Agency.
Editorial note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.