Best Health Insurance Companies in Alabama 2021

Last modified: September 15, 2021

Alabama is the home to more than 300 private health insurance companies. This allows residents to choose from a wide variety of coverage options, price points, and carriers. You need to obtain health insurance, as, without it, a trip to the emergency room can cost thousands of dollars.

Why take a risk when you have several health insurance plans to choose from? You need to find the best health insurance in Alabama, and we want to help you find it. We have reviewed providers of the ideal health insurance Alabama that its residents can have. 

Our search helped us identify options for low-cost health insurance that Alabama residents can benefit from, including those offering Alabama health insurance exchange. Our Alabama health insurance guide discusses the list of health insurance providers in the states and compares their plans to help you decide. 

We also recommend checking the State Marketplace at Healthcare.gov for more information on health insurance coverage and providers in your respective state, including helpful and valuable information on health insurance.

If you are looking for affordable health insurance outside of  Alabama- make sure to check out our list of best health insurance companies in the US.

Let’s have a detailed look at the most popular health insurance providers in Alabama

List of Providers and Comparison of Plans

In this section, we provide you with the most popular Alabama health insurance companies and their respective plans to assist you in selecting the best health insurance in Alabama according to your needs and budget.

Blue Cross Blue Shield of Alabama

Why choose BCBS of Alabama? The nonprofit health insurance company was established in 1936 in Birmingham, Alabama. The company provides coverage to over three million people in the United States. 

The health insurance provider is a Blue Cross and Blue Shield Association (BCBS) member. In Alabama, they command more than 90% of the health insurance market

The Blue Cross Blue Shield of Alabama plans are divided into three tiers – Gold, Silver, and Bronze. You can choose a BCBSAL health insurance plan based on how much you can afford to pay each month and the amount of health coverage you require. 

Insurance Plans
Gold Health Insurance Plan

The health insurance company pays 80% of the healthcare costs for the rest of the year. The customer has to pay the remainder of the 20% healthcare coverage. The monthly payments are higher, and the out-of-pocket expenses are lower under this health insurance plan.

Silver Health Insurance Plan

The health insurance company pays 70% of the healthcare costs throughout the year unless the person qualifies for cost-sharing. The monthly payments are lower than the gold health insurance plan but higher than the bronze ones. 

The customer’s out of pocket expenses are higher than the gold health insurance plan and lower than the bronze health insurance plan. 

Bronze Health Insurance Plan

The health insurance company pays 60% of the healthcare costs. For cheap health insurance, Alabama residents can choose the bronze plan. The monthly payments are lower, but the out-of-pocket expenses are higher.

UnitedHealthcare Services Inc. 

UnitedHealthcare is a for-profit managed healthcare company that offers health insurance plans to people residing in Alabama. They have four health insurance divisions:

  1. The UnitedHealthcare Employer and Individual – provide health benefit services and plans for national employers. 
  2. UnitedHealthcare Medicare and Retirement – provide health services to people who are 65 years and older. 
  3. The UnitedHealthcare Community and State – caters to state programs that care for the medically underserved, economically disadvantaged, and anyone without health insurance from their employer. They receive a monthly premium from each member state part of the program.
  4. The UnitedHealthcare Global – serves more than six million people, providing them with medical benefits. They offer insurance in Peru, Chile, Brazil, and Columbia, but also in more than 100 countries.  
Insurance Plans
TriTerm Medical Health Insurance

These are short term health insurance plans for Alabama residents that last for almost three years. They provide coverage for doctor visits, preventive care, pharmacy, and more.

Short Term Health Insurance

This health insurance plan is for people who need health insurance for a short duration. This insurance plan can fill a gap from one month to less than a year. 

Dental Health Insurance

Dental health insurance includes coverage for oral health screening, orthodontic care, preventive care, and more.

Vision Health Insurance

Vision health insurance covers routine eye exams, prescription glasses, vision screenings, and contact lenses.

Critical Illness Health Insurance

A critical illness health insurance plan covers costs for a person diagnosed with a chronic medical condition such as a heart attack, coma, renal failure, loss of vision, speech, or hearing, life-threatening cancer, stroke, and more. 

Hospital and Doctor Fixed Indemnity Health Insurance

Hospital and doctor fixed indemnity health insurance puts aside an amount of money for certain medical services that traditional health insurance plans may not provide coverage for. This includes unpredictable costs surrounding an unplanned or planned surgery, obtaining prescription drug copay, and paying lab or diagnostic expenses such as X-rays or blood tests.

Bright Health Insurance Company

Bright Health Insurance Company utilizes advanced tools and high-tech technology to provide simplified health insurance coverage plans. Bright Health Insurance is only available in these four counties, Chilton, Shelby, Jefferson, and Walker.   

They offer $0 deductible health plan coverage options to help people save money. They offer several different health insurance plans. So, before choosing, people should consider their healthcare budget and how often they plan to use it.    

Insurance Plans
Gold Health Insurance Plan

The gold plan is good for customers expecting to use their health insurance plan regularly for things such as routine visits to the healthcare provider, regular prescriptions, and more. Expenses are predictable due to most having copay.   

Silver Health Insurance Plan

The silver plan is good for customers expecting to use their health insurance plan occasionally and would prefer lower deductibles.  It also offers more benefits than the bronze health insurance plan.

Bronze Health Insurance Plan

The bronze plan is good for customers who are healthy and who want to reduce their monthly premiums. They don’t mind the risk of paying a higher deductible if they suffer from an expensive health incident.

Catastrophic Health Insurance Plan

The catastrophic plan is good for customers who are younger than 30. They expect minimal health incidents and low premiums. 

Coverage plan includes three main care visits and with more benefits followed after the customer reached the maximum out of pocket expenses. Customers can add on options, and plans include the Health Reimbursement Arrangement (HRA), Bright Health Secure, and Off-Exchange Plans.

ALL Kids — Low-Cost Insurance for Children

ALL Kids health insurance of Alabama is a comprehensive, low-cost, and affordable health insurance Alabama residents can avail. They provide insurance coverage plans to kids under the age of 19. 

The benefits include routine checkups, immunizations, sick child doctor visits, vision, and dental care, prescriptions, mental health and substance abuse, hospitalizations, and more. 

The health insurance company uses the Blue Cross Blue Shield of Alabama (BCBSAL) to provide customers with mental health, substance abuse, and medical services through its Preferred Provider (PPO) network. 

When you enroll, they will provide you with a packet from both the ALL Kids and the Blue Cross Blue Shield of Alabama. Once you have the coverage, you can make payments online and through credit card or debit card by calling their toll free numbers. 

Additionally, you can make money orders and checks out to the insurance company. You can find out if you qualify for other healthcare plans by visiting Healthcare.gov.

Cigna-HealthSpring Medicare Advantage Plans

Cigna medical insurance Alabama offers Medicare Advantage Plans. The health insurance plan provides customers with all-in-one coverage, which combines Part A, B, and at times, Part D into one plan. Some plans even offer dental and vision insurance.    

Customers can access their coverage, ID cards, claims, providers, and other things online. On this coverage plan, customers also receive 24/7 virtual care where they can discuss their minor medical and health issues with a board-certified doctor via phone, tablet, or computer.   

The plans can help them save money. Depending on their chosen plan, they can have low or no premiums at all. They also offer flexible PPO and HMP plans to help people receive adequate healthcare coverage according to their budget and needs. Customs can also benefit from their special needs coverage options.     

Alabama Medicaid Agency

For individual health insurance and family health insurance, Alabama residents can opt for the state’s Medicaid Agency. They provide coverage for a wide range of medical services such as eye care services, hearing services, lab services, radiology services, and more.     

They cover three types of services, co-payments, out of state services, and non-covered services. They offer coverage for ICN and maternity care. 

The agency gives Medicaid for children, parents and caretakers, pregnant women, the elderly and the disabled, nursing homes, breast and cervical cancer, plan first family planning, and more. 

Best Health Insurance Plan by City in Alabama

After examining all the counties, cheap health insurance that all Alabama residents have access to is offered by the Blue Cross and Blue Shield Alabama. Out of all the plans offered, the Silver Plan is the cheapest Alabama state health insurance.   

This plan is the cheapest in terms of coinsurance costs, monthly premiums, and benefits. The table below displays monthly premiums for the BCBSAL based on the number of people it covers for their Silver Plan.   

County Cheapest Health Insurance Plan 40-Year-Old Individual 40-Year-Old Couple 40-Year-Old Couple with One Child
Autauga, Prattville Silver Plan $539 $1,079 $1,347
Jefferson County, Birmingham Silver Plan $525 $1,051 $1,312
Mobile County, Mobile Silver Plan $518 $1,036 $1,293
Madison County,  Huntsville  Silver Plan $561 $1,122 $1,401
Montgomery County, Montgomery  Silver Plan $539 $1,079 $1,347
Shelby County, Alabaster  Silver Plan $525 $1,051 $1,312

 

What Is the Average Cost of Health Insurance in Alabama?

The average cost of health insurance in the state is $553 for a person who is 40 years old in 2020. From 2019, this is a $7 increase. The average cost of health insurance by family size in Alabama, assuming the family includes two 40-year-old adults with two children, would be $1,595 each month to insure. 

The monthly rate for kids below the age of 15 won’t increase until they turn 15, which means the premiums will rise. 

The average health insurance quotes in Alabama by metal tier in 2020 are as follows:  

  • Average Low-Cost Bronze Plan Premium – $384
  • Average Low-Cost Silver Plan Premium – $521
  • Average Low-Cost Gold Plan Premium –  $641

For the best health insurance, Alabama residents can choose from the two best insurance companies, the Blue Cross Blue Shield of Alabama and the Bright Health Insurance Company. 

Alabama Insurance Guide and Resources

Here you’ll learn about the different types of health insurance coverage options the state of Alabama provides. 

Types of Health Insurance Provided

The state provides the following three types of health insurance to residents:

  • Employer-Provided for You and Your Family

You can get this insurance from your employer or through your partner’s employer

  • Private Health Insurance for Individuals and Families

You can get their insurance through HealthCare.gov or straight from a health insurance company.

  • Government-Assisted 

You can get Medicare and the Affordable Care Act or Obamacare in Alabama.

Medicare is for people aged 65 and older. When opting for this low-income health insurance, Alabama residents should know about Medicare’s components: Medicare Part A, B, C, and D with Medicare supplement plans available.    

  • Under Qualified Medicare Beneficiary (QMB), you may qualify for Medicare if you’re a single person making less than $1,084 each month, or you’re a couple making less than $1,457 each month. 
  • Under the Specified Low Income Medicare Beneficiary (SLMB), you may qualify for Medicare if you’re a single person making less than $1,296 each month or you’re a couple making less than $1,744 each month.
  • Under the Qualified Individual (QI), you may qualify for Medicare if you’re a single person making less than $1,456 each month or you’re a couple making less than $1,960.

Medicare Benefits for Each Part

  • Part A pays for hospital costs, inpatient care, hospice care, nursing facility care, and selected home health services.
  • Part B pays for necessary medical procedures, preventive care, doctor visits, X-rays, durable medical equipment, and lab tests. It also covers mental health services, outpatient hospital care, ambulance services, and clinical research. Medicare Part B cost is $144.60 in 2020. 
  • Part C also called Medicare Advantage, is a plan that you have to get through a private health insurance company.  

This plan provides the same coverage as Medicare Part A and B. Sometimes, they cover things that don’t come under Original Medicare, such as prescription drugs, hearing tests, and dental work.

  • Part D covers prescription drugs. The Part D prescription drug plans don’t cover every drug, but some plans may pay for the medications you have been prescribed to take. You’ll have to obtain a plan that covers the medications you currently take. You should review the list of drugs covered by the plan, so you know which one you need to join.

The number of people enrolled in Medicare in Alabama is 1,057,747 as of 2020. That’s over 21% of Alabama’s total population. 

The Affordable Care Act (ACA) in Alabama created a health insurance exchange and prevents health insurance companies from denying health insurance or charging more because of pre-existing medical conditions. 

It also allows children to remain on their parents’ health insurance until the age of 26. 

It provides the following benefits:  

  • Ambulatory patient services
  • Breastfeeding
  • Emergency services
  • Family planning
  • Hospitalization
  • Laboratory services
  • Mental health and substance use services
  • Pediatric services
  • Pregnancy, maternity, and newborn care
  • Prescription medications
  • Preventive and wellness services and chronic disease management
  • Rehabilitative and habilitative services

The Obamacare Alabama rates by tier include Platinum covering 90% of healthcare expenses, Gold covering 80% of healthcare expenses, Silver covering 70% of healthcare expenses, and Bronze covering 60% of healthcare expenses. The higher in the tier you go, the more costly it will be.

Tips to Save on Health Insurance in Alabama

When assessing factors that contribute to the plans for private health insurance, Alabama residents should consider:

  • Tobacco Use – you’ll pay a higher monthly premium if you smoke due to the health risks it poses.
  • Age – on average, people 41 years and older pay three times more for health insurance than younger people. 
  • Location – the state and city you live in can cause your monthly premiums to increase. The health of the state is important, and unfortunately, Alabama is number 47 on the list of the healthiest states in the United States.

Alabama Health Insurance Laws

They include:

  • Pre-existing conditions – insurance companies can no longer charge people higher for healthcare insurance if they have a pre-existing health condition.
  • Gender – women tend to pay higher than men for health care. However, the ACA states that they can’t charge different premiums for the same healthcare plan for men and women.
  • Insurance and medical history – people with a history of medical conditions or lapses in health insurance can find it difficult to get health insurance. The ACA doesn’t allow health insurance providers to consider these factors to determine the costs.

Pros & Cons

The Pros

The Cons

Final Verdict

FAQs

When is Alabama’s open enrollment for 2021 health insurance coverage?

It’s open from November 1, 2020, until December 15, 2020.

Did Alabama expand Medicaid?

No, they didn’t expand Medicaid because legislators labeled it as an entitlement program.

What are the short term health insurance conditions?

For short term health insurance, Alabama residents can expect health coverage for up to 364 days with the opportunity to renew it for up to 36 months.

What is the uninsured rate in Alabama?

The uninsured rate is lower than the rest of the United States, with 15.8% versus the country’s 17.7%. People in Alabama who are under 19 have the lowest uninsured rated at 4.3%.

What does health insurance in Alabama generally cover and does not cover?

They cover doctor and hospital visits, wellness care, prescription drugs, and medical equipment. Most don’t cover cosmetic or elective procedures, off-label drug use, beauty treatments, and new technologies.