Health Insurance Plans in Alabama

There are many health insurance plans to choose from in Alabama, but which health insurance companies in Alabama, and plans are right for you?

The state marketplace is the best option if you want affordable health insurance and good coverage. Blue Cross and Blue Shield of Alabama and Bright Health Insurance Company both offer plans on the state exchange. Blue Cross Blue Shield of Alabama comes out on top regarding prices, but you also need to consider the coverage available. Take a closer look at the health insurance plans to find the right one for your needs.

Cheap Health Insurance Plans in Alabama by Metal Tier

Is price the most important factor guiding your decision when buying health insurance? If so, consider the plans available from Blue Cross and Blue Shield of Alabama. This insurance company offers metal tiers; prices, deductibles, and coverage depend on the tier you select.

The estimates for the following health insurance plans in Alabama are for the average 40-year-old resident.

  • Blue Protect is the cheapest plan. This is the company’s Catastrophic tier offering, and the average monthly cost is $271.09, although costs vary depending on the county. This plan has a $7,350 deductible and a $7,350 out-of-pocket maximum.
  • The Blue HSA Bronze is next, with an average monthly cost of $323.40. It has an annual deductible and an out-of-pocket maximum of $6,450.
  • Blue Cross Select Silver health care plan is next. This is the cheapest silver tier plan in the state, and many prefer it. The average monthly cost is $471.33, the deductible is $2,800, and the out-of-pocket maximum is $7,350.
  • Blue Cross Select Gold has the highest premium but the lowest deductible and out-of-pocket costs. The monthly premium is $532.54, but the deductible is $850, and the out-of-pocket maximum is $6,000.

Keep in mind that the deductible for all plans increases as you age. For instance, if you pick the Gold plan, you might only pay $532.54 when you’re 40, but by the time you reach 60, you can expect to pay $1185.54. That is a significant increase and it’s the case for all health insurance plans in Alabama.

Choosing Health Insurance Plans in Alabama

If you are looking for cheap health insurance in Alabama, simply going over the average premium costs isn’t enough. The county you live in is an important factor since different counties offer different policies. Your income also plays a role in how much you’ll pay. The federal government offers subsidies for low-income households and can reduce the premiums by a significant amount. Regardless of your county or income, you will get to choose from a variety of metal tiers when selecting a policy.

As you look through the policies, you will notice that Gold and Silver plans have higher premiums. While these plans look more expensive on paper, you must consider the fewer out-of-pocket expenses. Deductibles, coinsurance, and copays are lower with these plans. If you have medical issues that cause you to go to the doctor regularly, these plans will likely be more affordable in the long run. However, if you are healthy and young, a lower tier plan with higher out-of-pocket costs will likely save you money.

Let’s take a closer look at the tiers.

Gold Plans — Ideal for High Medical Costs

Gold plans are essentially the gold-standard of health insurance. These health insurance plans in Alabama provide the best coverage, but they also have the highest premiums. If you have a chronic condition, lots of medical expenses, or need lots of prescriptions, a plan in this tier is likely right for you. You can expect your plan to cover 80 percent of all your healthcare costs.

Silver Plans — Ideal for Average Medical Costs and/or Low Incomes

Silver plans sit between Gold and Bronze plans. The premiums are approximately 9 percent cheaper than Gold plans, but they are more than 50 percent pricier than Bronze plans. These plans specialize in balance. The premiums are more affordable than Gold plans, and the out-of-pocket costs are lower than Bronze plans. The plans can also include a cost-sharing reduction for low-income households. If you qualify for the reduction, it will cover a large portion of your out-of-pocket expenses.

You can expect a Silver plan to pay approximately 70 percent of your healthcare costs if you don’t get a subsidy. If you do, the coverage goes up to around 94 percent.

Catastrophic and Bronze Plans — Ideal for Healthy Young People

If you are young and healthy, you aren’t as concerned about out-of-pocket costs since you won’t use your insurance often. Instead, you want low premiums. Catastrophic plans offer the lowest premiums, but you have to be under 30 years old to get one. These plans also have the least coverage.

Anyone can sign up for a Bronze plan. The premiums are much less than Gold and Silver plans, but the out-of-pocket costs are quite high. These plans cover around 60 percent of your healthcare costs.

Short-term Health Insurance in Alabama

If you are in between jobs or have temporarily lost your insurance for another reason, consider short-term health insurance in Alabama. Short-term insurance doesn’t cover mental health services, maternity care, or prescription drugs, but it can pick up some of the costs you incur for other services. Keep in mind that pre-existing conditions might prevent you from getting approved for a short-term policy. Short-term health insurance plans provide coverage for a year, but you can renew it for up to 36 months.

Get Help Comparing Health Insurance Plans in Alabama

There are lots of health insurance plans in Alabama, and selecting one can be overwhelming. Fortunately, we are here to help. Call 1-888-497-1683 to speak to a licensed insurance agent. The agent will go over your options with you and help you select the right policy for your budget and your healthcare needs.