Updated: May 22, 2024
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Best Health InsuranceAlabamaBest Health Insurance in Alabama
Why Trust MoneyGeek? We downloaded plan data for Alabama directly from the Centers for Medicare & Medicaid Services (CMS). MoneyGeek’s scoring methodology balances costs, claims approval and plan types to find the best providers in the state.
Plan data was updated with the CMS exchange data released in October 2023 for the 2024 enrollment period.
Blue Cross Blue Shield, with a MoneyGeek score of 88 out of 100, offers the best health insurance in Alabama. Blue Cross Blue Shield excels in providing affordable health plan options that keep out-of-pocket costs low. This provider smoothly manages claims and rarely denies them.
We used data from 15 Silver Exclusive Provider Organization (EPO) plans and five Preferred Provider Organization (PPO) plans to determine the best health insurance in Alabama.
Highly affordable premium rates
Low out-of-pocket costs
Denies very few claims
Offers a large variety of plans
Blue Cross Blue Shield (BCBS) is MoneyGeek's top pick for the best health insurance in Alabama. The provider offers five Silver PPO plans and two unique Silver EPO plans at an average plan rate of $501 per month. The average MOOP cost for these plans is $8,463.
BCBS's Silver PPO plans come with an added benefit of more out-of-network coverage. This provider's EPO plans are also recommended due to their uncomplicated structure, as they do not require referrals for specialists. BCBS has a denial rate score of 17%, lower than much of the competition.
Plan Recommendations
MoneyGeek recommends the following Silver plans from Blue Cross Blue Shield:
Blue Cross Blue Shield (BCBS) is the leading health insurance provider in Alabama for low out-of-pocket costs, with a MoneyGeek score of 96 out of 100. BCBS performs well in several key areas. The provider offers a choice of affordable plan options, maintains low out-of-pocket costs and is less likely to deny claims than other providers in Alabama.
For this analysis, we evaluated a total of 13 plans: six Gold EPO plans, six Gold PPO plans and one Platinum PPO plan.
Offers affordable premium rates
Out-of-pocket costs are lower than competitors
Denies very few claims
Many different types of plans available
MoneyGeek's top pick for the best health insurance in Alabama for low out-of-pocket costs is Blue Cross Blue Shield. It offers six Gold PPO plans and one Platinum PPO plan, metal tiers known for their lower MOOP costs. These plans have an average rate of $534 per month and an average MOOP cost of $6,089.
PPO plans typically offer more out-of-network coverage, meaning that BCBS provides consumers with a broader range of doctors and hospitals to choose from. BCBS also has a denial rate of 17% — lower than most of the competition — so there's a good chance your claims will be accepted.
Plan Recommendations
MoneyGeek recommends the following Gold and Platinum plans:
Blue Cross Blue Shield is the highest rated cheap health insurance provider in Alabama, earning a score of 92 out of 100. BCBS offers more affordable plan options with a lower average for out-of-pocket expenses, and denies fewer claims than the majority of other providers.
For this category, MoneyGeek evaluated 20 Silver plans in Alabama. This included 15 Silver EPO plans and five Silver PPO plans. Although we focused on plans with lower monthly premiums, it's worth noting that plans with lower premiums often have higher out-of-pocket costs.
Affordable premium rates
Very low out-of-pocket costs
Denies fewer claims than average
Many plan types to choose from
MoneyGeek's top pick for the best cheap health insurance in Alabama is Blue Cross Blue Shield. It offers seven different Silver plans, giving consumers several budget-friendly options for their health care. These Silver BCBS plans average $434 per month, with an $8,137 average maximum out-of-pocket cost.
Among the Silver plans BCBS offers, both PPO and EPO types are available. Its five PPO plans tend to offer more out-of-network coverage, whereas its two EPO plans may offer lower out-of-pocket costs when you stay within the network.
BCBS has a denial rate of 17%, much lower than the highest denial rate in our analysis (35%). This is good for customers looking to receive reliable coverage.
Plan Recommendations
MoneyGeek recommends the following cheap Silver plans:
The best health insurance in Alabama for those with low income is provided by UnitedHealthcare, scoring 58 out of 100. UnitedHealthcare highlights include affordable plan options with lower-than-average rates. However, this company has significantly higher out-of-pocket costs and a higher percentage of claim denials than other providers.
For this category, we looked at Silver plans with eligible cost-sharing reductions (CSRs). In Alabama, we evaluated 18 such plans: 15 EPO and three PPO.
To offer the best option for those with low income, we weighted Silver CSR plans based on low monthly premiums, which offers a way to avoid the choice between low premiums and high out-of-pocket costs. A standard Silver plan takes care of approximately 70% of health care costs, but Silver plans with CSRs cover varying percentages based on income:
Keep in mind, these income brackets shift depending on the number of people in a household.
Affordable premium rates
Offers many different types of plans
High out-of-pocket costs
High claim denial rate
For people in Alabama with low incomes, UnitedHealthcare is the best health insurance choice. It offers cost-effective plans for those earning below 250% of the federal poverty level (FPL). UnitedHealthcare offers five Silver CSR plans to Alabama residents meeting eligibility requirements at an average rate of $577 per month. The average MOOP cost for these plans is $7,310.
Although this provider only offers EPO plans, these plans often have lower premiums than PPO or POS plans. The denial rate for UnitedHealthcare is 32%. This suggests that the company denies claims more frequently than its competitors.
Plan Recommendations
UnitedHealthcare's top-rated plan offers lower out-of-pocket expenses for the same premium for people in different income brackets. Here are some of the lower overall out-of-pocket costs based on income levels:
Blue Cross Blue Shield tops the list for the best health insurance in Alabama for young adults, with a MoneyGeek score of 96 out of 100. Blue Cross Blue Shield offers affordable plan options with lower-than-average out-of-pocket costs. Its denial rate for claims is also much better than average.
In our analysis for this category, we evaluated one Bronze EPO plan, 12 Expanded Bronze EPO plans, four Expanded Bronze PPO plans and one Catastrophic PPO plan.
Affordable premium rates
Low out-of-pocket costs
Very few claims denied
Offers a high variety of plan types
Blue Cross Blue Shield is the top pick for young adults seeking health insurance in Alabama. Young people often opt for lower coverage levels since they typically receive fewer medical services than older adults. The insurer offers four Expanded Bronze plans and one Catastrophic plan. On average, these plans will cost you about $242 a month with a maximum out-of-pocket cost of $8,538 per year.
BCBS offers Catastrophic and Expanded Bronze plans as PPOs. PPO plans are known for their flexibility, including more out-of-network coverage. The denial rate for BCBS is about 17%, lower than most of the competition. That means it's more likely to accept your insurance claim.
Plan Recommendations
MoneyGeek recommends the following BCBS plans for young adults in Alabama:
Health insurance companies offer a variety of plan types. In Alabama, there are 15 Silver EPO plans and five Silver PPO plans available. The best providers for all plan types in Alabama are:
MoneyGeek's analysis included only Silver plans in these recommendations. Silver plans are ideal for individuals who frequently use health services because they balance the costs you pay every month with the costs you pay at the time of medical service. In short, they offer a good balance of affordability for both premiums and out-of-pocket costs.
MoneyGeek's top pick for the best health insurance in Alabama for Silver PPO plans is Blue Cross Blue Shield. This company offers five Silver PPO plans at an average plan rate of $432 per month with an $8,127 MOOP. With a denial rate of 17%, it's lower than other insurers.
PPO plan types can offer more freedom to let policyholders choose their providers and don't require referrals to see specialists. They're widely available as the second most common plan type in Alabama. However, they might cost more than HMO plans and might not be the best choice if you're on a budget.
Plan Recommendations
We suggest the following Silver PPO plans from Blue Cross Blue Shield:
MoneyGeek's top pick for the best health insurance in Alabama for Silver EPO plans is Ambetter, which offers eight different plans at an average plan rate of $614 per month and $7,725 MOOP. With a denial rate of just 15%, Ambetter is better than most at approving health insurance claims.
Silver EPO plans have some distinct advantages and disadvantages. They are the third most popular type of plan, and you don't always need a referral to see a specialist. However, like HMOs, you have to stay within the network unless it's an emergency, somewhat limiting your options.
Plan Recommendations
We suggest the following Silver EPO plans from Ambetter:
National General Accident and Health, which received a MoneyGeek score of 95 out of 100, provides the best short-term health insurance in Alabama. Since short-term health insurance does not provide all the necessary health benefits that Affordable Care Act (ACA)-compliant plans do, it's only recommended for people wishing to address temporary coverage gaps.
National General Accident and Health stands out because it offers a wide range of plan options to accommodate various health care demands. For high-risk patients, the company offers plans with modest co-insurance and out-of-pocket expenses. Plans can have durations of three months to three years and offer several options for cost-sharing and prescription drug coverage.
Your budget and medical needs — including how much you're willing to spend each month versus when you receive care — will determine which health insurance provider in Alabama is right for you. The following pointers can be useful when planning to get health insurance.
Understand when a health insurance plan will cover you
In-network health insurance coverage refers to care provided by doctors or hospitals that have a contract with your insurance company. These providers agree on set costs for services, which are usually lower. Out-of-network coverage is for care from providers not contracted with your insurance. This care can be more expensive.
In Alabama, there are five PPO plans and 15 EPO plans. PPO plans offer more freedom — as they cover some costs of out-of-network care — but they can be more expensive. EPO plans can be more affordable, but typically do not pay for out-of-network care unless it's an emergency. These trade-offs are important to consider when choosing health insurance.
Weigh the cost of premiums vs. the cost of care
Finding the right health insurance plan is a balancing act. It comes down to the monthly costs and the most you have to spend on health care in a year, which is the MOOP.
For example, the Blue HSA Silver for Business plan from Blue Cross Blue Shield has the lowest MOOP at $6,000. However, the monthly rate is $352. This is less than the average monthly premium of the other Silver plans from the same company. This could be a good choice if you use health care services often.
Medicare is available to those 65 and older or with a qualifying disability or illness. It is a federal health insurance program that offers eligible people discounts on medical treatments. There are three components to Medicare:
MoneyGeek also provides information for finding the top Alabama Medicare Supplement and best Medicare Advantage plans in Alabama.
Medicaid is a different federal program that offers health insurance to people whose income is below a state-set limit. Through a number of programs in Alabama, families, children, pregnant mothers, elderly and disabled residents might be eligible for Medicaid benefits.
Finding an ideal health insurance plan can be complicated due to concerns about price and availability. MoneyGeek answers some frequently asked questions to help you research options.
The best health insurance in Alabama for 2024 is provided by Blue Cross Blue Shield. However, the best choice for you will depend on your unique circumstances and needs.
A plan with reasonable prices and sufficient coverage is what you should be looking for. Despite offering reduced prices, some plans and companies might only offer a few services that may not suit all your medical needs. Your unique needs will determine what the best health insurance plan for you is.
About Mark Fitzpatrick
Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
