As of 2019, just over 460,000 people in Alabama were uninsured, according to data compiled by the Kaiser Family Foundation (KFF). That tally represents about 9.7% of the state’s population. In a separate report, KFF also found that 242,100 uninsured people in Alabama qualify for marketplace coverage.
Marketplace health insurance, which was created by the Affordable Care Act (ACA), offers certain consumer protections, guarantees coverage for pre-existing conditions and includes 10 essential health benefits, among other things.
More than half (53%) of the uninsured in Alabama who qualify for marketplace coverage could get a bronze plan for free.
That’s thanks to advance premium tax credits, which help lower the cost of health insurance under the ACA. People with incomes of 100% to 400% of the federal poverty level qualify for these tax credits, also known as premium subsidies.
Nearly 9 in 10 people who bought health plans on the federal marketplace over the last few years qualified for subsidies. Alabama is one of 36 states that uses the federal marketplace at HealthCare.gov.
In 2021, there are two marketplace insurers in the state according to data from KFF. The nonprofit also calculated the average lowest cost of marketplace coverage in Alabama for 2021 as follows: $401 for a bronze plan, $549 for a silver plan and $669 for a gold plan.
These amounts represent unsubsidized coverage. If you qualify for a premium subsidy in Alabama, you may save money on your premiums.
Using our own marketplace, we’ve estimated that a 40-year-old in Hope Hull, Alabama with an annual income of $37k a year could save on premiums with a tax credit. A bronze plan from BlueCross BlueShield might be as low as $103.43 a month in this case.
Costs, availability and coverage will always vary based on where you live. Health insurance carriers in Alabama include BlueCross BlueShield and Bright Health.
Sources
Kaiser Family Foundation, “Health Insurance Coverage of the Total Population”
Kaiser Family Foundation, “Marketplace Eligibility Among the Uninsured: Implications for a Broadened Enrollment Period and ACA Outreach” (January 27, 2021)
Kaiser Family Foundation, “Average Marketplace Premiums by Metal Tier, 2018-2021”
Kaiser Family Foundation, “Insurer Participation on the ACA Marketplaces, 2014-2021” (November 23, 2020)