Best Cheap Health Insurance in [STATE] (2026)
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
Of the three health insurance companies on HealthCare.gov in Alabama, Ambetter sells the cheapest Silver plans, followed by Blue Cross Blue Shield (BCBS) and UnitedHealthcare (UHC), with rates starting 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 of Alabama | $497-$646 |
| UnitedHealthcare | $508-$807 |
- Ambetter of Alabama has the cheapest health insurance plans in the state, with Silver plans starting at $490 per month, 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 of Alabama 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 trade-off when choosing your level of 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.
BCBS of AL has a perfect 5-star rating for member experience from HealthCare.gov. That means its members are usually happy with the service they get from the company. BCBS has an overall rating of 3 stars in Alabama, the highest in the state.
Find Cheap Health Insurance Quotes in Alabama
Best-rated health insurance companies in Alabama
Best-rated health insurance companies in AL
Company |
ValuePenguin rating
|
ACA rating
|
|---|---|---|
| Kaiser Permanente | ||
| Western Health | ||
| Sharp Health Plan | ||
| Blue Shield | ||
| Health Net |
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, BCBS gets significantly fewer complaints than an average company its size.
- Popular and affordable: Blue Cross Blue Shield is the most popular medical 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.
Blue Cross and Blue Shield of Alabama is also taking steps to make it easier to get certain medical care in 2026 by changing its prior approval process. That means if your BCBS insurance plan requires you to get approval for certain medical care, the process should be easier and clearer going forward. This hopefully means it will be easier and faster to get medical care if you have a Blue Cross Blue Shield plan.
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 that it is not well-rated in Alabama. It has a poor score for the quality of medical care, and it receives just 2 out of 5 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 or $55 per month if you qualify for discounts based on your income.
Find Cheap Health Insurance Quotes in Alabama
- 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 medical 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.
Health insurance discount changes in [State] for 2026
Health insurance costs $X in [State], or about $X per month, on average, if you get discounts based on your income.
For people who can get subsidies, rates will increase from about $X in 2025 to $X in 2026. That's because discount levels are changing for 2026. Since 2021, shoppers on HealthCare.gov and state marketplaces have gotten higher discounts called "expanded subsidies." These better discounts expire at the end of 2025. While you may still be able to get discounts based on your income, they won't be as good as they were before.
Health insurance rates in [State] after subsidies (2025 vs. 2026)
Income | 2025 rate | 2026 rate | Difference |
|---|---|---|---|
| $30,000 | $X | $X | +$X |
| $40,000 | $X | $X | +$X |
| $50,000 | $X | $X | +$X |
| $60,000 | $X | $X | +$X |
| $70,000 | $X | $X | +$X |
Estimated cost after subsidies for a single 40-year-old with a Benchmark Silver plan.
- Who can get subsidies? To qualify, you have to make between $15,650 and $62,600 as a single person or $32,150 and $128,600 as a family of four. Your subsidy will be higher if you make less money.
- How do subsidies work? You can use your subsidy to help you buy a plan from any company. Subsidies can be used for Bronze, Silver or Gold plans, but they can't be used on Catastrophic plans.
- How much do you save? You can use ValuePenguin's subsidy calculator to find out how much a subsidy will lower your health insurance rate.
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 for a Silver plan. Blue Cross is also the cheapest company in Birmingham, at $526 per month.
Ambetter of Alabama offers the cheapest health insurance in Mobile, at $496 per month.
Cheapest health insurance plans by AL county
County | Cheapest Silver 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 plans cost an average of $564 per month before discounts.
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 are 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. |
Bronze plans have cheap rates, averaging $428 per month, but you'll pay a large portion of your bill when you visit the doctor.
Consider a Bronze plan if you don't think you'll need a lot of health care in the coming year. 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 cost $233 per month for a 21-year-old in Alabama.
Only people younger than 30 and people who qualify for a special hardship exemption can buy a Catastrophic plan.
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. These 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.
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 the 10 states that have 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 AL in 2026?
The cost of medical insurance in Alabama went up by an average of X% between 2025 and 2026. Silver plans went up by X%, while Gold plans saw a X% increase. Since 2022, the cost of a Silver plan has increased by XX%.
Catastrophic
Bronze
Silver
Gold
Year | Cost | Change |
|---|---|---|
| 2024 | $323 | - |
| 2025 | $298 | -8% |
Monthly costs are for a 40-year-old.
Catastrophic
Year | Cost | Change |
|---|---|---|
| 2024 | $323 | - |
| 2025 | $298 | -8% |
Monthly costs are for a 40-year-old.
Bronze
Year | Cost | Change |
|---|---|---|
| 2023 | $425 | - |
| 2024 | $452 | 6% |
| 2025 | $428 | -5% |
Monthly costs are for a 40-year-old.
Silver
Year | Cost | Change |
|---|---|---|
| 2022 | $579 | - |
| 2023 | $591 | 2% |
| 2024 | $584 | -1% |
| 2025 | $564 | -3% |
Monthly costs are for a 40-year-old.
Gold
Year | Cost | Change |
|---|---|---|
| 2022 | $705 | - |
| 2023 | $718 | 2% |
| 2024 | $727 | 1% |
| 2025 | $664 | -9% |
Monthly costs are for a 40-year-old.
Why is health insurance expensive in AL for 2026?
Health care costs keep rising, and that is pushing up health insurance rates in 2026.
When the cost for medical care rises, health insurance companies pay more when their customers go to the doctor, get treatments or fill prescriptions. To make up for the extra costs, companies raise rates for everyone.
Additionally, insurance companies are spending more on weight-loss drugs like Ozempic and Wegovy, which causes rates to go up.
Marketplace subsidy changes could also lead to higher rates in 2026. Since 2021, people with low incomes have benefited from extra discounts called "enhanced subsidies." But if Congress doesn't act, those bigger discounts will expire at the end of 2025. This means that the discounts you could get next year won't be as high, leading to a more expensive plan.
How to prepare for the 2026 rate increases
- Get quotes from other companies. When you shop on HealthCare.gov, you can see all the companies and plans in your area. Take the time to get quotes from the other companies and see if there's a cheaper plan that works for you. Just make sure your doctors are in the plan's network before you commit.
- Consider a lower-tier plan. A lower-tier plan like Bronze can help you get a lower monthly rate. But it's not a perfect solution because you will have to pay more when you go to the doctor. If you think a Bronze plan could still work for you, think about opening a health savings account (HSA) to help you save for medical costs. HSAs are a perk that's new to Bronze plans for 2026.
- See if you get discounts. Discounts might not be as good in 2026, but they'll still be available for people with low incomes. If you don't make much or you've had a recent income change, check to see if you can get subsidies. It's one of the easiest ways to get a cheaper plan.
- Check if you can get Medicaid. It's not easy to get Medicaid in Alabama, but it doesn't hurt to check if you qualify. If you can get Medicaid, your health care will likely be cheap or free.
Plans that you get on HealthCare.gov 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 pays an average of $1,689 per month for coverage before discounts.
Family size | Average monthly cost |
|---|---|
| Individual | $564 |
| Individual and 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
Health insurance enrollment by income level in [State]
The changes to health insurance discounts in 2026 affect people with low incomes the most.
That's because people with lower incomes are more likely to get a plan from [Healthcare.gov or a state marketplace]. For example, in [State] in 2025, over half of people with a marketplace plan made less than $XX,XXX.
Enrollment by income
Income | % of total enrollment |
|---|---|
| Less than $15,060 | X% |
| $15,060 to $20,783 | X% |
| $20,784 to $22,590 | X% |
| $22,591 to $30,120 | X% |
| $30,121 to $37,650 | X% |
Enrollment in 2025 marketplace plans made during the 2024-2025 Open Enrollment period. Total may not be 100% due to rounding.
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 of Alabama has the cheapest health insurance in Alabama, at $490 per month for a Silver plan. 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.
Can I get health insurance for $100 a month in AL?
You can get health insurance for $100 per month in Alabama, but likely only if you have a low income and you get subsidies. Otherwise, health insurance costs $564 per month on average for a 40-year-old with a Silver plan. A 21-year-old with the same coverage pays an average of $441 per month.
Are subsidies changing in 2026?
Yes, subsidies are likely going to change in 2026. The current enhanced subsidies are expiring at the end of 2025. Unless they are renewed, health insurance rates will go from $X to $X per month, even after discounts.
Methodology
[State] health insurance rate data for 2026 is from [the Centers for Medicare & Medicaid Services (CMS) website OR a state marketplace site name]. ValuePenguin used the [CMS public use files (PUFs) or state marketplace data] to find average rates for different plan tiers, geographic locations and family sizes.Rates
Rates are based on a 40-year-old with a Silver plan, unless otherwise noted. Rates for Bronze plans include regular and Expanded Bronze plans for 2024, 2025 and 2026, when the plans are available. Your costs and plan options will vary; plans aren't always available in all parts of a state or county.
Subsidies
Rates after subsidies are estimates for a 40-year-old with a Benchmark Silver plan and are based on how subsidies were structured before 2021. Prices are calculated using KFF's rates for full-price Benchmark plans, federal poverty levels (FPLs), IRS rules about premium tax credits and Congressional reports about expanded tax credits. The total cost in the state uses calculated rates by income, which are weighted using CMS data on the incomes of those who purchased plans during last year's open enrollment. The median was used for each income range. Unknown incomes were excluded from the calculations. Incomes of 100% of the federal poverty line and 500% of the federal poverty line were assumed for enrollees who earn less than 100% FPL and more than 500% FPL, respectively. Information about state subsidies, when available, was sourced from state marketplaces.
Ratings
ValuePenguin's experts rank companies based on cost, coverage options, customer satisfaction and unique value. Ratings are out of 100 possible points. ACA ratings show how the company performs in [State] for medical care, member experience and plan administration. This 2026 plan quality data from CMS is based on data from last year. Ratings are not available for new plans or plans with low enrollment.
More sources
Enrollment trends, including plan selections by tier and enrollment by income, are from CMS data for the 2025 open enrollment period.
Other sources include S&P Global Capital IQ and the National Association of Insurance Commissioners (NAIC).
Insurance Writer
Cate Deventer is a ValuePenguin writer who specializes in health insurance, Medicare, auto and home insurance. She's been a licensed insurance agent since 2011.
She started her insurance career working as a customer service agent for State Farm. She later moved to an independent agency, where she worked with several insurance companies and hundreds of clients. She quoted policies, filed claims and answered insurance questions. In 2021, she pivoted her career and began writing about insurance for Bankrate. She moved to ValuePenguin in 2023 and began writing about health insurance and Medicare.
Cate has a passion for helping readers choose insurance to fit their needs. She enjoys knowing that her research and knowledge help people choose insurance products that make a positive difference in their lives.
How insurance helped Cate
Cate used her health insurance knowledge to navigate a surgery in 2023. Understanding how her policy worked let her focus on recovery instead of worrying about bills.
Expertise
- Health insurance
- Medicare
- Auto insurance
- Home insurance
- Life insurance
Credentials
- Licensed Life, Accident and Health Insurance Agent
- Licensed Property & Casualty Insurance Agent
Referenced by
- CBS
- NBC
- Wall Street Journal
Education
- BA, Theatre, Purdue University
- BA, English, Indiana University
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.
