Best Ways To Get Affordable Health Insurance In Alabama

Best Ways To Get Affordable Health Insurance In Alabama

Aside from the fact that Alabama is a beautiful place and is blessed with beautiful weather all year round, the cost of living in the state is relatively low. 

It is said that health is wealth. That saying has proven itself true and true over time and that is why it is good that you ensure your health. 

Health insurance is a very important purchase that protects your health in the event of any health-related crisis. The premiums you pay on health insurance in Alabama is dependent on a number of factors.

These factors include age, body mass index, past medical history, smoking habits, occupation, type of plan you choose, geographical location etc. 

All these factors affect the rates you pay for your health insurance. 

In Alabama, health insurance follows a metal tier system. This system is comprised of 5 levels:

  1. Catastrophic
  2. Expanded bronze
  3. Silver
  4. Gold
  5. Platinum

Premiums for the health insurance plan in each tier varies. The lower the monthly costs, the higher you pay out of pocket when you need medical care. 

Primarily, each individual tier determines how you and your insurer divide the medical costs or expenses. However, it does not affect the quality of care you receive. 

Lesser premiums come with lesser coverage and will require more deductibles and out-of-pocket maximums. 

Medicaid or Medicare are the government’s public health programs. They are designed for people with disabilities, the elderly and people with low income. 

Individuals who do not fall under these categories would have to purchase health insurance policies either through their employers or through Alabama exchange insurance

The Cheapest Health Insurance In Alabama By Metal Tier

A metal tier system is used in Alabama for health insurance. Each tier determines how much you pay for premiums and how much medical care you receive. A lesser tier is more affordable but also limits the coverage you get. 

But, also note that the tier system does not affect the quality of care you receive 

The monthly average cost for premiums for different tiers are as follows:

  1. Catastrophic: $310 monthly
  2. Expanded Bronze: $361 monthly
  3. Silver: $449 monthly
  4. Gold: $547 monthly 
  5. Platinum: $466 monthly

More valuable metals like Gold and Platinum are used to describe plans that have wide coverage.

 They have higher monthly premiums and cover a large percentage of your medical costs or expenses; about 80-90% and require you to pay less out of pocket. 

If you require medical care often, the gold or platinum tier is a good choice and would be a lot cheaper for you. 

Individual tiers charge different rates, varying deductibles and out of pocket maximums. 

Some Factors That Affects The Rates Of Health Insurance In Alabama

Health insurance, unlike auto insurance, does not offer varieties of discounts. However, there are things you can do to keep your premium lower. 

Maintain a healthy body mass index (BMI): 

Having a high body mass index exposes you to risks like heart disease, high blood pressure and diabetes. People with high BMI pay a little higher for health insurance to help safeguard their health. 

Eating healthy and taking steps to lose weight will not only help you cut costs on health insurance but also help you maintain a healthy BMI. 

Quit using tobacco: 

Smoking typically endangers your health. Approximately 22% of people living in Alabama smoke. Health insurance providers charge smokers higher insurance rates. 

To protect your health, it is a good idea to quit smoking. 

What Does Health Insurance Cover?

Health insurance in Alabama covers procedures, treatments and surgeries related to illnesses or injuries. 

It also covers some or all of the following depending on the plan you’re on:

  1. Ambulance services
  2. Rehabilitative services
  3. Laboratory services
  4. Mental health care
  5. Wellness checks
  6. Pediatric care
  7. Emergency services
  8. Hospitalization
  9. Newborn and maternity care
  10. Prescription drugs

However, health insurance does not cover the following:

  1. Elective or cosmetic procedures
  2. Long-term nursing home care
  3. Infertility treatments
  4. LASIK
  5. Alternative therapies
  6. Dental, vision and hearing

The Cheapest Health Insurance in Alabama by Age and Metal Tier

Age is an important factor that health insurance providers use in determining rates. Your age significantly affects how much you would pay for premiums. For example, PPO plans for a 26-year-old in the silver tier costs, on average, $360 per month while a 60-year-old pays $594 extra for a similar plan. 

In Alabama, monthly premiums increase as you get older. Purchasing lower tiers like the bronze plan can give you lower rates but higher out of pocket expenses. 

If you’re looking for really affordable health insurance, the Blue Cross and Blue Shield of Alabama offer the low rates. 

The Cheapest Health Insurance in Alabama by County

Your particular location in the state affects the amount you would pay for the premium on your health insurance. The  67 counties in Alabama are divided into 13 rating areas. 

Blue Cross and Blue Shield of Alabama offers the cheapest silver plan in Jefferson which is the most populous County in Alabama. 

On average, the Blue HSA silver for Business plan costs $303 per monthly. 

The Cheapest Health Insurance In Alabama With High Out-of-Pocket Maxes

A low-cost plan with high out-of-pocket maximums means paying lower premiums, These plans are ideal for younger people who do not see a doctor often during the year.

The cheapest high out of the pocket plan in Alabama is the Blue Protect plan from Blue Cross and Blue Shield of Alabama. A 26-year-old buyer pays $244 per month on average for premium. 

The Cheapest Health Insurance in Alabama With Low Out-of-Pocket Maximums

If you require a lot of medical care, purchasing health insurance in Alabama with a low out-of-pocket maximum could be a better option. When you reach your out of pocket maximum sooner as you pay for visits to the doctor and prescription drugs, your insurance company would begin to cover/pay for your medical expenses. 

Cheapest PPO/EPO Health Insurance Plan In Alabama

It is important to base your preferences on the type of health insurance plan to purchase on requirements. Preferred Provider Organization (PPO)plans  policies tend to be a little more expensive than HMO plans. However, they provide a broader network and are very flexible. 

Exclusive Provider Organization (EPO) plans though not as popular as the PPO plans, have lower premiums and also available in Alabama. 

The following are the cheapest Silver health insurance plans in Alabama for PPO and EPO policies:

  1. PPO: Blue Cross and Blue Shield of Alabama offers Blue HSA Silver for Business at $292 per month for the average 40-year-old male.
  1. EPO: Bright Health offers Silver 4200 for $623 per month for the average 40-year-old male.

Leave a Reply