Buying a short-term health plan in Alabama
- Alabama defaults to federal regulations for short-term plans.
- Short-term plans are allowed to have initial terms up to 364 days, and total duration, including renewal, of up to 36 months.
- At least seven insurers offer short-term plans in Alabama.
Alabama defaults to federal short-term regulations
Alabama does not have state-specific regulations for short-term health insurance plans, so the state defaults to the federal regulations. Because Alabama does not limit short-term plans, the Trump Administration’s new regulations apply in the state.
Short-term plan duration: up to 36 months
Prior to October 2, 2018, federal rules limited short-term health plans to three months in duration, and prohibited renewal. But the Trump Administration has relaxed those rules.
As of October 2018, insurers are allowed to offer short-term plans with initial terms up to 364 days and the option to renew for a total duration of up to 36 months. But insurers also have the option to offer shorter maximum terms and to prohibit renewal.
Which insurers offer short-term plans in Alabama?
- Everest Prime
- Golden Rule (UnitedHealthcare)
- Independence American Life
- National General
- Companion Life
- Standard Life
Louise Norris is an individual health insurance broker who has been writing about health insurance and health reform since 2006. She has written dozens of opinions and educational pieces about the Affordable Care Act for healthinsurance.org. Her state health exchange updates are regularly cited by media who cover health reform and by other health insurance experts.