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Alabama Health Insurance Consumer Guide
We’ve created this guide, including the FAQs below, to help you understand the Alabama health insurance options available to you and your family, and to help you select the coverage that will best fit your needs and budget.
An ACA Marketplace (exchange) plan – or Obamacare – is a good option for anyone who needs to buy their own individual or family health coverage, including people who aren’t eligible for Medicaid, Medicare, or an employer-sponsored health plan.
Alabama uses the federally run Marketplace, so you can enroll at HealthCare.gov. Three private health insurance companies offer plans through the Marketplace in Alabama. Two of the three carriers have decreased their average pre-subsidy premiums for 2025.1 (see rate change details below)
Nearly all Alabama Marketplace enrollees qualify for financial assistance with the cost of their coverage.2
Explore our other comprehensive guides to coverage in Alabama
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Alabama’s Medicaid program
Learn about Alabama's Medicaid expansion, the state’s Medicaid enrollment and Medicaid eligibility.
Medicare coverage and enrollment in Alabama
Use our guide to learn about Medicare, Medicare Advantage, and Medigap coverage available in Alabama as well as the state’s Medicare supplement (Medigap) regulations.
Short-term coverage in Alabama
Short-term health plans provide temporary health insurance for consumers who may find themselves without comprehensive coverage. Learn more about short-term plan availability in Alabama.
Frequently asked questions about health insurance in Alabama
Who can buy Marketplace health insurance?
To enroll in private health coverage through the Marketplace in Alabama (HealthCare.gov), you must:3
- Live in Alabama and be lawfully present in the United States
- Not be incarcerated
- Not have Medicare coverage
So most people are eligible to enroll in Marketplace coverage. But qualifying for financial assistance (premium subsidies and cost-sharing reductions) depends on your income and also has some additional parameters. To qualify for financial assistance with your Marketplace plan you must:
- Not have access to affordable health coverage offered by an employer. If you’re eligible to enroll in an employer-sponsored plan but it seems too expensive, you can use our Employer Health Plan Affordability Calculator to see if you might qualify for premium subsidies in the Marketplace.
- Not be eligible for Medicaid or CHIP.
- Not be eligible for premium-free Medicare Part A.4
- If married, file a joint tax return5 (with very limited exceptions)6
- Not be able to be claimed by someone else as a tax dependent.7
When can I enroll in an ACA-compliant plan in Alabama?
You can sign up for an ACA-compliant individual or family health plan in Alabama between November 1 and January 15 during the annual open enrollment period.
To have your coverage take effect on January 1, you need to complete your enrollment by December 15. If you apply between December 16 and January 15, your coverage will take effect on February 1.
Outside of the open enrollment window, you may be eligible to enroll or make a plan change if you experience a qualifying life event, such as giving birth or losing other health coverage. And some people can enroll year-round even without a specific qualifying event.
Enrollment in Alabama Medicaid and ALL Kids (CHIP) is available year-round, so if you’re eligible for either program, you can enroll anytime.
How do I enroll in a Marketplace health insurance plan in Alabama?
To enroll in an ACA Marketplace (exchange) plan in Alabama, you can:
- Visit HealthCare.gov – the health insurance Marketplace website – to compare the available health plans, determine subsidy eligibility, and select the plan that best meets your needs .
- Enroll in Marketplace coverage with the help of licensed agents, navigators, or certified application counselors.8
- Enroll via an approved enhanced direct enrollment entity.9
You can also call HealthCare.gov’s contact center by dialing 1-800-318-2596 (TTY: 1-855-889-4325). The call center is available 24 hours a day, seven days a week, except for holidays.
How can I find affordable health insurance in Alabama?
You may find affordable health insurance coverage in Alabama by enrolling through HealthCare.gov. This is especially true if you qualify for premium tax credits (subsidies), and most Alabama enrollees are subsidy-eligible.
As of early 2024, 98% of Alabama Marketplace enrollees were receiving premium subsidies. These premium subsidies saved enrollees an average of about $657/month. After subsidies were applied, the average enrollee’s monthly cost was about $64/month. 10
(The numbers above are based on effectuated enrollment in early 2024. The chart below is different because it measures some different metrics and also uses data from all enrollments submitted during the open enrollment period for 2024 coverage.)
If your household income isn’t more than 250% of the federal poverty level, you may also qualify for cost-sharing reductions (CSR). These subsidies can make your deductible and other out-of-pocket expenses smaller than they would otherwise be, as long as you select a Silver-level plan. As of 2024, more than two-thirds of the people with Marketplace coverage in Alabama were receiving CSR benefits. 10
Source: CMS.gov 11
If you’re eligible for APTC and CSR benefits you can utilize both as long as you select a Silver-level plan (APTC can be used with plans at any metal level, but CSR benefits are only available on Silver plans).
Depending on your income and circumstances, you may find that you’re eligible for free or low cost health coverage through Alabama Medicaid or ALL Kids (CHIP). Check to see if you meet the criteria for these programs in Alabama.
How many insurers offer Marketplace coverage in Alabama?
Are Marketplace health insurance premiums increasing in Alabama?
The following average rate changes were approved for 2025 for Alabama’s individual/family health insurers, including two overall rate reductions:
Alabama’s ACA Marketplace Plan 2025 APPROVED Rate Increases by Insurance Company |
|
---|---|
Issuer | Percent Increase |
Blue Cross and Blue Shield of Alabama | -7.56% |
UnitedHealthcare | 0.54% |
Celtic/Ambetter from Alabama | -7.28% |
Source: RateReview.HeathCare.gov14
Keep in mind that these average rate changes are for full-price (unsubsidized) plans. However, very few enrollees pay full price. Nearly all (98%) of Alabama’s Marketplace enrollees were receiving premium tax credits in 2024 that covered some or all of their monthly premium costs.10
These subsidies are adjusted to match changes in the benchmark plan (the second-lowest-cost Silver plan) in each area. And as a result of the American Rescue Plan and the Inflation Reduction Act, the subsidies are larger and more widely available than they used to be. This will continue to be the case through 202515 (it could be extended past that, but only with an act of Congress).
But if the benchmark (second-lowest-cost Silver) plan premium decreases from one year to the next, premium subsidies in that area will also decrease. So it’s important to comparison shop during open enrollment, even if your plan’s pre-subsidy premium is going down.
For perspective, here’s a summary of how average unsubsidized premiums have changed over time in Alabama’s individual/family health insurance market:
- 2015: Average increase of 3%16
- 2016: Average increase of 24.4%17
- 2017: Average increase of 36%18
- 2018: Average increase of 17.9%19
- 2019: Average decrease of 2%20
- 2020: Average increase of 3.3%21
- 2021: Average increase of 5.1%22
- 2022: Average increase of 6.7%23
- 2023: Average increase of 0.42%24
- 2024: Average (unweighted) decrease of 3.7%25
How many people are insured through the Marketplace in Alabama?
During the open enrollment period for 2024 coverage, 386,195 people enrolled in private plans through Alabama’s health insurance Marketplace.26
This was by far a record high, dwarfing enrollment in previous years (see chart below). Before 2024, the highest enrollment had come in 2023, when 258,327 people enrolled through Alabama’s Marketplace.27
The sharp increase in enrollment in recent years is due in large part to the subsidy enhancements created by the American Rescue Plan and Inflation Reduction Act, which have made coverage more affordable than it used to be.
The enrollment growth in 2024 was also partially driven by the “unwinding” of the pandemic-era Medicaid continuous coverage rule. Medicaid disenrollments resumed in the spring of 2023, and by April 2024, more than 93,000 Alabama residents had transitioned from Medicaid to a Marketplacen plan during the unwinding process.28
Source: 2014,29 2015,30 2016,31 2017,32 2018,33 2019,34 2020,35 2021,36 2022,37 2023,38 202439
What health insurance resources are available to Alabama residents?
HealthCare.gov
The Marketplace in Alabama, where residents can enroll in individual/family health coverage and receive income-based subsidies. You can reach HealthCare.gov at 800-318-2596.
Alabama Department of Insurance
Licenses and regulates health insurance companies, agents, and brokers; can provide assistance to consumers who have questions or complaints about entities the Department regulates.
AIDS Alabama/Enroll Alabama
The federally-funded Navigator organization in Alabama.
Alabama State Health Insurance Assistance Program
A local service that provides assistance and enrollment counseling for Medicare beneficiaries and their caregivers.
Alabama Medicaid Agency and ALL Kids (Alabama’s Children’s Health Insurance Program)
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.
Footnotes
- ”Alabama Rate Review Submissions” RateReview.HealthCare.gov. Accessed Dec. 4, 2024 ⤶
- ”Effectuated Enrollment: Early 2024 Snapshot and Full Year 2023 Average” CMS.gov, July 2, 2024 ⤶
- ”A quick guide to the Health Insurance Marketplace” HealthCare.gov ⤶
- Medicare and the Marketplace, Master FAQ. Centers for Medicare and Medicaid Services. Accessed November 2023. ⤶
- Premium Tax Credit — The Basics. Internal Revenue Service. Accessed MONTH. ⤶
- Updates to frequently asked questions about the Premium Tax Credit. Internal Revenue Service. February 2024. ⤶
- Premium Tax Credit — The Basics. Internal Revenue Service. Accessed January 12, 2024. ⤶
- Find Local Help. HealthCare.gov. Accessed November 2023. ⤶
- “Entities Approved to Use Enhanced Direct Enrollment” CMS.gov, Aug. 9, 2024 ⤶
- ”Effectuated Enrollment: Early 2024 Snapshot and Full Year 2023 Average” CMS.gov, July 2, 2024 ⤶ ⤶ ⤶
- “2024 Marketplace Open Enrollment Period Public Use Files” CMS.gov, March 2024 ⤶
- ”Alabama Rate Review Submissions” RateReview.HealthCare.gov. Accessed Aug. 20, 2024 ⤶
- ”Plan Year 2025 Qualified Health Plan Choice and Premiums in HealthCare.gov Marketplaces” Centers for Medicare & Medicaid Services. October 25, 2024. ⤶
- ”Alabama Rate Review Submissions” RateReview.HealthCare.gov. Accessed Dec. 4, 2024 ⤶
- “Health Insurance Marketplaces 2023 Open Enrollment Report” CMS.gov, Accessed August 2023 ⤶
- Analysis Finds No Nationwide Increase in Health Insurance Marketplace Premiums. The Commonwealth Fund. December 2014. ⤶
- FINAL PROJECTION: 2016 Weighted Avg. Rate Increases: 12-13% Nationally* ACA Signups. October 2015. ⤶
- Rates for some Obamacare plans to increase by 36 percent. AL.com. October 2016. ⤶
- Alabama, Hawaii, Missouri, Wyoming: Wrapping Up The 2018 Rate Hike Project W/An Assist From Avalere. ACA Signups. October 2017. ⤶
- 2019 Rate Hike Project Wrap-Up: FINAL/APPROVED Rate Changes For Alabama, Mississippi & Utah. ACA Signups. November 2018. ⤶
- Alabama: *Final* 2020 Avg. #ACA Exchange Premium Changes: +3.3%. ACA Signups. October 2019. ⤶
- 2021 Rate Changes. ACA Signups. October 2020. ⤶
- 2022 Rate Changes. ACA Signups. October 2021. ⤶
- UPDATED: FINAL Unsubsidized 2023 Premiums: +6.2% Across All 50 States +DC. ACA Signups. Accessed November 2023. ⤶
- ”Alabama: *Final* avg. unsubsidized 2024 #ACA rate changes: -3.7% (unweighted)” ACA Signups. Oct. 5, 2023 ⤶
- Marketplace 2024 Open Enrollment Period Report: Final National Snapshot. Centers for Medicare and Medicaid Services. January 2024. ⤶
- “Marketplace 2023 Open Enrollment Period Report: Final National Snapshot” CMS.gov, January 2023 ⤶
- HealthCare.gov Marketplace Medicaid Unwinding Report. Centers for Medicare and Medicaid Services. Data through April 2024; Accessed Aug. 20, 2024 ⤶
- “ASPE Issue Brief (2014)” ASPE, 2015 ⤶
- “Health Insurance Marketplaces 2015 Open Enrollment Period: March Enrollment Report”, HHS.gov, 2015 ⤶
- “HEALTH INSURANCE MARKETPLACES 2016 OPEN ENROLLMENT PERIOD: FINAL ENROLLMENT REPORT” HHS.gov, 2016 ⤶
- “2017 Marketplace Open Enrollment Period Public Use Files” CMS.gov, 2017 ⤶
- “2018 Marketplace Open Enrollment Period Public Use Files” CMS.gov, 2018 ⤶
- “2019 Marketplace Open Enrollment Period Public Use Files” CMS.gov, 2019 ⤶
- “2020 Marketplace Open Enrollment Period Public Use Files” CMS.gov, 2020 ⤶
- “2021 Marketplace Open Enrollment Period Public Use Files” CMS.gov, 2021 ⤶
- “2022 Marketplace Open Enrollment Period Public Use Files” CMS.gov, 2022 ⤶
- “2023 Marketplace Open Enrollment Period Public Use Files” CMS.gov, March 2023 ⤶
- ”HEALTH INSURANCE MARKETPLACES 2024 OPEN ENROLLMENT REPORT” CMS.gov, 2024 ⤶