The Best Health Insurance in Alabama

When choosing between Alabama health insurance companies, it’s important to weigh your potential health care needs against the cost of treatment. Customer service, plan options and overall satisfaction should also factor in your decision.

Alabama has two primary health insurance marketplace providers — Blue Cross and Blue Shield of Alabama and Bright Health — with UnitedHealthcare joining in 2022. MoneyGeek’s analysis shows that Blue Cross and Blue Shield of Alabama is the better choice across the board.

According to MoneyGeek’s scoring system, Blue Cross and Blue Shield of Alabama (BCBS of Alabama) received an 88 out of 100, making it MoneyGeek's pick for the best medical insurance provider in Alabama.

Compared to other marketplace providers, BCBS of Alabama touts lower average out-of-pocket maximums, higher customer satisfaction scores and more metal tier options. Of course, each plan is different, and the right one for you will depend on your personal health care needs.

Bright Health is MoneyGeek’s runner-up for best health insurance in Alabama, receiving a score of 65 out of 100. This provider has a higher average out-of-pocket maximum and a below-average customer satisfaction rating but performs relatively well in terms of options across metal tiers.

If affordability is a priority, cheap Alabama health insurance is available for individuals and families. Keep in mind that plans with lower monthly premiums tend to have higher deductibles and out-of-pocket maximums. Contemplating your expected health care needs will help you determine whether this strategy is right for you.

MoneyGeek found that Bright Health is a somewhat less affordable option for health insurance in Alabama. This company’s average maximum out-of-pocket cost is $8,044.

Compared to BCBS of Alabama, Bright Health offers fewer metal tiers and a worse record for customer satisfaction.

The purpose of health insurance is to protect you from unmanageable medical costs, especially in the event of an emergency. To this end, choosing an Alabama medical insurance provider that works efficiently in claim reimbursement and offers quality customer service is vital.

Alabama’s other primary health care provider, Bright Health, is a newer company both nationally and in the Alabama marketplace. Although this company has less available data, Bright Health has collected numerous complaints in other parts of the country according to the NAIC. Its customer service score is 2.1, just below average.

If you have a high-deductible health plan (HDHP), getting a health savings account (HSA) can help you maximize your untaxed dollars. An HSA can lower your health insurance costs since it covers co-insurance, deductibles and other related expenses.

As of 2022, the minimum deductible for an HDHP for individual and family plans is $1,400 and $2,800. Note that you cannot use your HSA funds to pay your premiums.

By comparison, the average premium for the HSA-eligible plan from Bright Health is $564.

A family plan is similar to an individual plan but covers a spouse, dependents and sometimes parents under one policy. Depending on the provider, dependents may be covered until they are 26 years old (sometimes longer).

Like individual health insurance plans, family rates are based on several factors. Premiums will generally increase with the number of people on your plan. However, it’s still often cheaper to group members under a family health insurance plan rather than pay for each person individually.

Bright Health is MoneyGeek’s runner-up for best Alabama health insurance provider for families, offering fewer tier options and a more expensive average premium of $1,711 for a family of four.

Family plan rates are determined partly by the number of family members covered and the chosen metal tier. The chart below shows average national premiums for an individual versus several family sizes.

Medicare and Medicare Advantage plans are usually reserved for individuals aged 65 and older. However, early retirees may want to consider health insurance options for the years before they become eligible for Medicare. Because seniors usually require more medical care, they can expect to pay higher premiums.

As another option, Bright Health’s average plan premium for a 60-year-old policyholder is $1,214. In addition to higher costs, Bright Health scored lower on customer service and plan options than Blue Cross and Blue Shield of Alabama.

Alabama's best health care insurance companies blend affordable coverage with plan options and quality customer service. However, the ideal insurance provider will vary per person based on needs and preferences.

To find the best Alabama health insurer for you or your family, MoneyGeek recommends following these steps:

• Examine the benefits: The summary of benefits offers a snapshot of a plan’s commonly encountered expenses. Compare your health care needs with the information found there.
• Review all associated costs: Don’t stop at the premium — review the copays, co-insurance, deductible and maximum out-of-pocket expenses to get the complete picture of what you’ll pay for a given plan.
• Start with Silver: If you’re unsure where to begin, start with a Silver plan. This middle-of-the-road option often comes with subsidies that can help reduce your premium.
• Assess your prescriptions: Although some plans offer free or discounted medicines, check to see if an insurance provider covers the brand-specific ones you may prefer.

The Affordable Care Act (ACA) has standardized many aspects of the health insurance marketplace, but some states still have key differences. Alabama’s marketplace operates through the federal system, allowing residents to purchase plans through HealthCare.gov.

Open enrollment is the time shoppers can purchase or change marketplace plans. Historically, open enrollment in Alabama has occurred from November 1 to December 15. However, dates currently extend an extra month, from November 1 to January 15.

A third health care provider, UnitedHealthcare, will join the marketplace in 2022, giving Alabama residents another option.

Shopping for health insurance in Alabama can be confusing. MoneyGeek answers some of the most frequently asked questions below.