Find a plan.
A TRUSTED INDEPENDENT HEALTH INSURANCE GUIDE SINCE 1999.
Call our agency partners 866-553-3223

Featured

Featured
13 qualifying life events that trigger ACA special enrollment
Outside of open enrollment, a special enrollment period allows you to enroll in an ACA-compliant plan (on or off-exchange) if you experience a qualifying life event.

Latest News & Topics

Latest News & Topics

Featured

Featured
6 lessons Mary Lou Retton’s health scare can teach us about coverage
Mary Lou Retton’s health scare story included some important lessons for consumers, many of whom may assume that the celebrity’s health scare is a sign of barriers to affordable health coverage.
Call our agency partners 866-553-3223

Medicaid eligibility and enrollment in Alabama

Alabama has among the nation's strictest eligibility rules for Medicaid


Who is eligible for Medicaid in Alabama?

Alabama’s current Medicaid eligibility criteria are more limited than many other states. Childless adults in Alabama are not eligible for Medicaid, because the state has not expanded Medicaid under the ACA. And parents of minor children are only eligible with extremely low incomes. Alabama’s Medicaid program covers the following populations (income limits include a built-in 5% income disregard that’s used when determining income-based Medicaid eligibility):1

Federal poverty level calculator

How does Medicaid provide financial help to Medicare beneficiaries in Alabama?

Many Medicare beneficiaries receive Medicaid financial assistance that can help them lower Medicare premiums, lower prescription drug costs, and pay for expenses not covered by Medicare – including long-term care.

Our guide to financial assistance for Medicare enrollees in Alabama includes overviews of these programs, including Medicaid nursing home coverage, Extra Help and eligibility guidelines for assistance.


How do I enroll in Medicaid in Alabama?

You have several options for submitting a Medicaid application in Alabama.

  • Non-disabled adults under age 65 can apply online through Healthcare.gov. If the system determines that you may be eligible for Medicaid, it will refer you to the Alabama Medicaid program to complete the application.
  • Individuals can find information and apply online (seniors and people with disabilities can also use this application pathway).
  • Paper applications can be printed by selecting the eligibility category on this page.
  • For assistance by phone, call toll-free: 1-800-362-1504.


Has Alabama expanded Medicaid?

No, Alabama has not accepted federal funding to expand Medicaid under the ACA, despite Democratic lawmakers’ repeated attempts to do so.

But that might change, under the terms of a gambling bill that was introduced in Alabama’s House of Representatives in February 2024.2 The legislation, which would also have to be approved by voters with a constitutional amendment ballot measure,3 would allow (but not require) gambling revenue to be used to help fund the states’s portion of the cost to purchase Marketplace health plans for Alabama adults with income up to 138% of the poverty level.4 Within a week of being introduced, the measure had passed the Alabama House by a 67-31 vote and was sent to the Senate for consideration.

If the bill were to be enacted and voters were to approve the ballot measure, this would be a privatized version of Medicaid expansion, much like the approach that Arkansas uses. Projections vary, but an estimated 300,000 people would gain eligibility for Medicaid in Alabama if the state were to accept federal funding to expand Medicaid (other estimates put this number as high as 340,000). An estimated 128,000 of these individuals are currently in the coverage gap, and have no realistic access to health coverage due to the state’s rejection of Medicaid expansion.

To be clear, 90% of the cost of Medicaid expansion is paid by the federal government; states only have to contribute 10%. And under the American Rescue Plan, additional federal funding is available for the first two years of Medicaid expansion.

The Alabama Hospital Association supports expansion, and has noted that dozens of hospitals in Alabama have closed in recent years or are in danger of closing due to lack of funds. Medicaid expansion would help to keep hospitals in the state afloat, particularly in rural areas.

A 2020 analysis by the Robert Wood Johnson Foundation determined that of the 15 states that had not yet expanded Medicaid at that point, Alabama would see the largest decrease in its uninsured rate by expanding Medicaid (as of 2024, there are still 10 states that have not expanded Medicaid; Alabama is among them). The uninsured rate in Alabama would drop by an estimated 43% if the state were to expand Medicaid.

Alabama has not accepted federal Medicaid expansion

  • 1,123,313 – Number of Alabamans covered by Medicaid/CHIP as of October 20235
  • 365,000 – Number of additional Alabama residents who would be covered if the state accepted expansion6
  • 186,681 – Number of AL residents disenrolled from Medicaid as of October 20237
  • $2 billion – Federal money Alabama left on the table in 2023 by not expanding Medicaid8


How is Alabama handling post-pandemic Medicaid renewals?

Between March 2020 and March 2023, states were prohibited from disenrolling people from Medicaid, even if they no longer met the eligibility guidelines. That rule ended March 31, 2023, and states could resume disenrollments as early as April 1.

In Alabama, the first round of disenrollments came at the end of May 2023.9 By October 2023, nearly 187,000 people had been disenrolled from Medicaid in Alabama.7

 

States have a year-long “unwinding” period during which they must redetermine eligibility for everyone enrolled in Medicaid. Alabama Medicaid continued to conduct eligibility redeterminations throughout the pandemic. Disenrollments were not permitted if the person didn’t respond or was found to no longer be eligible. But the state was able to recertify eligibility for many enrollees throughout the pandemic. Alabama officials clarified that most enrollees would keep their regular renewal date during the unwinding period.

But in some cases, Alabama prioritized renewals for people who were expected to no longer be eligible for Medicaid, so some enrollees may have found that their renewal date changed. Enrollees can find their current renewal date in the My Medicaid portal or call the recipient call center (1-800-362-1504) to talk with a representative and ask about their renewal date.

People who are no longer eligible for Medicaid can get new coverage through an employer, Medicare, or the health insurance Marketplace/exchange, depending on what’s available to them. All of these coverage options have special enrollment periods that allow a person to enroll due to the loss of Medicaid, even if it’s outside of the normal annual enrollment period.

CMS reported that 21,413 people in Alabama had transitioned from Medicaid to a Marketplace plan as of October 2023.10


How many people are enrolled in Alabama Medicaid?

As of late 2023, there were 1,123,313 people enrolled in Alabama Medicaid and CHIP.11

Since 2013, enrollment in those programs has grown by 43% in Alabama. Nationwide, enrollment has grown by 54%, driven in large part by Medicaid expansion and the COVID pandemic (enrollment has been declining since the spring/summer of 2023, due to the end of the COVID-related nationwide ban on Medicaid disenrollments). But Alabama’s refusal to expand Medicaid has kept enrollment growth lower than the national average.


Withdrawn 1115 waiver would have imposed the nation’s strictest work requirement on existing Medicaid population

In early 2018, Alabama Medicaid published a proposed 1115 waiver that would have implemented a work requirement for Alabama’s existing Medicaid population. The state opened a public comment period on the proposal, and almost all of the comments that the state received were in opposition to the work requirement proposal

Many comments pointed out that the waiver proposal was a catch-22 situation: People who complied would have lost Medicaid because they earned too much, and people who didn’t comply would have lost Medicaid due to non-compliance with the work requirement.

In response to the comments, Alabama modified the proposal to allow for up to 18 months of transitional Medicaid coverage for low-income parents whose income increases above the Medicaid eligibility threshold. The modified waiver proposal was submitted to CMS in September 2018, but was still pending federal approval when the COVID pandemic began, and the pandemic made work requirements a non-starter.

Although the Trump administration welcomed states’ proposed Medicaid work requirements, The Biden administration notified states in early 2021 that work requirements were not likely to gain approval and that already-approved work requirement waivers were being reconsidered. Ultimately, the Biden administration revoked approval for all previously approved Medicaid work requirements in 2021. And Alabama withdrew its proposed Medicaid work requirement waiver in February 2021.

Alabama’s proposal was much more strict than the proposals that had been submitted by other states, as it would have required 35 hours of work per week for Medicaid beneficiaries with children aged six or older, and 20 hours per week for those with children under the age of six (there would have been an exemption for a single parent with an infant under 12 months, or for a single parent with a child under age six for whom childcare was unavailable). In contrast, most states that considered Medicaid work requirements simply settled on 20 hours per week.

Alabama is already tied with Texas for having the most stringent Medicaid eligibility guidelines in the country. Non-disabled, non-elderly adults are not eligible at all unless they have minor children. And even then, parents of minor children are only eligible if their income doesn’t exceed 18% of the federal poverty level. For perspective, that’s $387/month in total income for a family of three in 2024. So a single mother earning $500/month and raising two children would not be eligible for Medicaid in Alabama (her kids would be eligible though; eligibility for children extends to households earning up to 146% of the poverty level).

The state’s proposed waiver would have exempted most of the state’s current Medicaid enrollees from the work requirement, including children, the elderly (age 60 or older), pregnant women, and disabled enrollees. The work requirement would only have applied to the “Parent or Caretaker Relative” (POCR) eligibility category, which is non-disabled parents who qualify for Medicaid based on having extremely low income.

Ironically, a very low-income parent who started to work 35 hours per week (the requirement in the waiver) would have almost immediately lost access to Medicaid in Alabama. Assuming the parent was earning minimum wage ($7.25/hour; former Gov. Bentley signed legislation in 2016 preventing cities in Alabama from raising the minimum wage above the federal level), he or she would earn about $1,015/month before taxes. To continue to qualify for Medicaid in Alabama, that parent would have to be supporting a household of 13 or more people, with no additional income.

The waiver proposal noted that the POCR category grew from under 32,000 people to over 74,000 people since 2013, and clearly, the idea here was to remove low-income parents from the state’s Medicaid rolls. The waiver notes the expectation was that “fewer parents and caretaker relatives will need to rely on Medicaid, and thus the group will decrease in size, due to increased income.”

Bentley administration received approval to overhaul Alabama Medicaid (without expansion), but Ivey administration abandoned the changes before they took effect

Alabama’s former Governor, Robert Bentley, received federal approval to transition the state’s Medicaid program to a managed care system involving regional care organizations (RCOs), but the implementation of the program was delayed and Bentley resigned before the program took effect. His successor, Governor Kay Ivey, scuttled the RCO plan, and focused instead on efforts to implement a work requirement for existing Medicaid enrollees

In May 2014, Alabama submitted a Section 1115 demonstration waiver proposal to CMS, called Alabama Medicaid Transformation. The proposal called for Medicaid funds to be distributed on a per-patient basis to regional care organizations (RCOs), most of which would be affiliated with local hospitals. The concept was that the RCOs could use preventive care and early (ie, lower-cost) interventions to keep patients out of the hospital. RCOs that spent less than their per-patient allocation could keep the leftover funds, while those that spent more would have to cover the excess cost themselves.

Since Alabama has not expanded Medicaid, the population slated to be impacted by the new 1115 waiver was mostly pregnant women, children, disabled individuals, and nursing home patients.

In February 2016, CMS approved Alabama’s section 1115 waiver, with the agreement that the federal government would contribute $328 million over three years to fund the transformation process, with the potential to secure another $470 million to supplement payments to RCOs (Alabama had asked for a total of $1 billion to fund Medicaid transformation). Some conditions of the approval included a requirement that the RCO model would not cost the federal government any more than the fee-for-service Medicaid program, along with a requirement that children and pregnant women receive more check-ups, and that Medicaid beneficiaries experience fewer hospitalizations.

The state later requested, and received, federal approval to delay the implementation of the RCO model by one year, with a new scheduled start date of October 2017.

But Bentley resigned amid scandal in April 2017, and his lieutenant governor, Kay Ivey, assumed the governorship. Soon after, Ivey’s Administration announced that they would abandon the RCO model, and the state officially withdrew the waiver in August 2017. In January 2018, Ivey directed the state’s Medicaid Commissioner to draft an 1115 waiver proposal that would implement a work requirement on non-disabled Alabama residents enrolled in Medicaid. That proposal, described above, was submitted to CMS for review in 2018, although the state withdrew it in early 2021, once it became apparent that the Biden administration would not approve work requirements and would revoke work requirement waivers that had already been approved by the Trump administration.

Gov. Bentley considered expansion, but funding was an obstacle

In April 2015, then-Governor Robert Bentley created a 38-member Alabama Health Care Improvement Task Force. And in November 2015, the Task Force recommended unequivocally that Alabama should expand Medicaid.

The task force recommended that Bentley and the Legislature “move forward at the earliest opportunity to close Alabama’s health coverage gap with an Alabama-driven solution.” They noted that expanding Medicaid would make coverage newly available to 185,000 low-income residents in the state, and would greatly improve their access to healthcare (note that other estimates have put the number considerably higher than this, at more than 300,000 people).

The week before the task force officially recommended Medicaid expansion, Bentley had said that Alabama was “looking at” the possibility of expanding Medicaid, but he noted that it would be an uphill battle to obtain the funding needed without a tax hike, and the legislature isn’t likely to approve a significant tax increase for anything, including Medicaid expansion. One of the possibilities that the task force considered was a 75 cent/pack tobacco tax to help fund Medicaid expansion.

And although Bentley at least entertained the idea of Medicaid expansion, he was more focused on implementing the RCO transformation (details above) rather than working to expand Medicaid at the same time.

Medicaid expansion was a point of differentiation in the November 2014 governor’s race. Democratic challenger Parker Giffith criticized Gov. Robert Bentley for his opposition to expansion, while Bentley repeatedly reaffirmed his decision during the campaign and immediately following his re-election. However, by late December of 2014, Bentley said he’d be open to a block grant or some other form of federal Medicaid funding to expand health coverage in the state.

In July 2015, a new report from the University of Alabama at Birmingham School of Public Health estimated that the state’s portion of the Medicaid expansion costs would be about $222 million a year, starting in 2020 once the state was responsible for 10% of the cost. However, that is dwarfed by the estimated $12 billion in federal funding that Alabama would have received between 2014 and 2020 if they had expanded Medicaid (the state can still expand Medicaid at any time and start to receive federal funding to cover 90% of the cost).

Although critics of the ACA’s Medicaid expansion often contend that expansion incentivizes people to not work, a 2015 Families USA analysis found that the percentage of uninsured working adults has dropped significantly more in states that expanded Medicaid. In states that expanded Medicaid in 2014, there was a 25% reduction in the number of working adults who were uninsured. But in Alabama, there was just a 12% reduction in the percentage of working uninsured adults in 2014.

Funding from BP oil spill settlement

Alabama’s Medicaid program had been facing an $85 million shortfall in the state’s 2016 budget. Governor Bentley called a special session of the legislature in August 2016 to address the issue; lawmakers were considering a state lottery or the possibility of using money from the BP oil spill settlement to shore up Medicaid funding.

Ultimately, lawmakers settled on funneling $120 million of state’s $1 billion BP settlement to the Medicaid program over the next two years, solving the problem in the short-term. But there was still a long-term problem, as the oil spill settlement funding solution only lasted for two years.

Alabama Medicaid history

The federal legislation establishing Medicaid was signed into law in 1965. Former Gov. Lurleen B. Wallace established Alabama’s Medicaid program by executive order in June 1967, and operations began Jan. 1, 1970. As of the program’s start date, 253,991 Alabama residents qualified for Medicaid. By the end of 1970, eligibility increased to more than 313,000 people, and the agency employed 45 people. A detailed history is available on the Alabama Medicaid website.

As of late 2013, just before the launch of the health insurance Marketplace, Alabama Medicaid covered about 799,000 people. As of October 2023, Medicaid enrollment in Alabama stood at more than 1.1 million people, a 43% increase since 2013.12

Nearly all states, including Alabama, contract with managed care organizations to deliver some or all Medicaid benefits. About 85% of Alabama’s Medicaid beneficiaries were enrolled in primary care case management plans as of 2019 according to the Kaiser Family Foundation. The Section 1115 waiver that Governor Bentley secured to transform Alabama’s Medicaid program called for cutting out private health insurers and contracting directly with regional care organizations — mostly run by hospitals — instead. But that program was scrapped by Governor Kay Ivey before it was implemented.

In August 2015, Governor Bentley cut off Medicaid’s reimbursement arrangement with Planned Parenthood, following a series of undercover videos created by anti-abortion groups alleging that Planned Parenthood was selling fetal tissue. Over the previous two years, Alabama Medicaid had paid Planned Parenthood less than $5,000; all of it was for office visits and contraceptives — no Medicaid funds had been used for abortion. Planned Parenthood sued the state over the termination of reimbursements, and ultimately won. By December 2015, Planned Parenthood was once again on the state’s Medicaid provider list, and the state had been ordered to pay Planned Parenthood’s $51,000 in legal fees.

The US Department of Justice announced in late 2022 that Alabama Medicaid would no longer deny coverage of Hepatitis C medications for Medicaid enrollees with substance use disorders.


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.

Footnotes

  1. Medicaid, Children’s Health Insurance Program, & Basic Health Program Eligibility Levels. Centers for Medicare and Medicaid Services. December 2023. 
  2. Could gambling money lead to Medicaid expansion in Alabama? Alabama Reflector. February 9, 2024. 
  3. Proposed Alabama gambling legislation includes lottery, casinos, sports betting. Alabama.com. February 7, 2024. 
  4. Alabama HB152. BillTrack50. Introduced February 8, 2024. 
  5. October 2023 Medicaid & CHIP Enrollment Data Highlights” , Medicaid.gov, Accessed January 2024. 
  6. 3.7 Million People Would Gain Health Coverage in 2023 If the Remaining 12 States Were to Expand Medicaid Eligibility” , urban.org, Accessed July 2022 
  7. Medicaid Enrollment and Unwinding Tracker. KFF. Accessed January 2024.  
  8. Last 11 States Should Expand Medicaid to Maximize Coverage and Protect Against Funding Drop as Continuous Coverage Ends” , cbpp.org, Accessed January 2023 
  9. Anticipated 2023 State Timelines for Initiating Unwinding-Related Renewals. Medicaid.gov. February 2023. 
  10. HealthCare.gov Marketplace Medicaid Unwinding Report. Centers for Medicare and Medicaid Services. Data through October 2023. 
  11. October 2023 Medicaid & CHIP Enrollment Data Highlights. Medicaid.gov, Accessed January 2024. 
  12. Total Monthly Medicaid & CHIP Enrollment and Pre-ACA Enrollment. KFF. October 2023. 

Find affordable health plans.

Helping millions of Americans since 1994.

(Step 1 of 2)

Apply for Medicaid in Alabama

You can find information and apply online; submit paper applications by mail, fax or in person to a district office; or call toll-free 1-800-362-1504.

Eligibility: Children up to 141% of FPL; children up to 312% of FPL qualify for CHIP; pregnant women up to 141% of FPL; parents up to 13% of FPL; elderly and disabled individuals with certain medical conditions and income levels

Alabama section

Related articles