Quick answer
In 2026, the benchmark silver plan for a 40-year-old in Alabama averaged $645 a month before subsidies, above the U.S. average of $625. Alabama rates its plans on its own age curve rather than the federal default, so prices still rise with age, just on a different schedule. More than 9 in 10 Alabama enrollees get a premium tax credit, and the average enrollee paid just $126 a month after it in 2026, well below the national average of $178. Alabama’s four insurers had their 2027 rates approved in early September 2026, averaging about 20.7% before subsidies.
Key takeaways
- Alabama’s 2026 benchmark premium for a 40-year-old was about $645 a month, above the U.S. average of $625.
- 455,776 Alabamians picked a plan for 2026, down 4.6% from 2025, and 91.1% got a premium tax credit, compared with about 87% nationally.
- Alabama’s 2027 rate increases are already approved: about 20.7% on average, ranging from 11.4% (Celtic/Ambetter) to 33.8% (Oscar).
- All four of Alabama’s insurers, Blue Cross Blue Shield of Alabama, UnitedHealthcare, Celtic/Ambetter and Oscar, continue unchanged for 2027.
- Alabama hasn’t expanded Medicaid, and parents qualify only up to 18% of the poverty level; about 128,000 Alabamians fall in the resulting coverage gap.
On this page
What an Alabama Marketplace plan costs before subsidies
The 2026 benchmark silver plan for a 40-year-old in Alabama averaged $645 a month, according to KFF, above the U.S. average of $625. Alabama rates its Marketplace plans on its own age curve instead of the federal default used in most states, so premiums still rise with age and fall for younger enrollees and children, just on a different schedule than the federal one. Your own price depends on your age, county and insurer, so compare current plans for your ZIP code below.
What you’d pay after a tax credit
If your household income is between 100% and 400% of the federal poverty level, a premium tax credit caps what you pay for the benchmark plan at a share of your income. A single 40-year-old in Alabama earning $40,000 would pay about $287 a month for the benchmark plan in 2026, with a tax credit of about $358. For 2027, the same person’s share would be about $289 a month. Above 400% of the poverty level ($62,600 for one person for 2026 coverage, $63,840 for 2027), you’d pay full price.
Because Alabama didn’t expand Medicaid, adults with incomes below the poverty level usually can’t get Medicaid or a tax credit. Parents and caretaker relatives qualify for Alabama Medicaid only up to 18% of the poverty level, and adults without dependent children have no Medicaid path at any income. See health insurance for low-income families.
Costs beyond the premium
What you pay when you get care depends on your plan’s deductible, copays and coinsurance, up to the out-of-pocket maximum of $10,600 for one person in 2026 ($12,000 in 2027). If your income is under 250% of the poverty level, a silver plan’s cost-sharing reductions lower those costs.
Alabama Marketplace facts
- Marketplace: HealthCare.gov, the federal exchange.
- Enrollment: 455,776 plan selections for 2026, down from 477,838 in 2025. 91.1% got a premium tax credit, and the average enrollee paid just $126 a month after it.
- Insurers: Four carriers, all continuing unchanged for 2027: Blue Cross Blue Shield of Alabama (by far the largest, with about 184,000 members), UnitedHealthcare, Celtic Insurance Company (Ambetter) and Oscar. Cigna doesn’t sell plans in Alabama.
- 2027 prices: Approved in early September 2026. ACA Signups’ enrollment-weighted average is 20.7%, ranging from 11.4% (Celtic/Ambetter) to 33.8% (Oscar, a small carrier with under 1,000 members). Individual plans vary more than the carrier averages suggest: one Blue Cross Blue Shield plan is actually decreasing 2.3%, while one Oscar plan is rising 48.2%. Insurers point to a healthier-than-average group of people leaving the market after enhanced federal subsidies expired.
- State help: Alabama has no state premium subsidy, reinsurance program or individual mandate, so shoppers rely on federal tax credits.
- Medicaid: Alabama Medicaid doesn’t cover non-disabled adults without children at any income, and parents qualify only up to 18% of the poverty level. About 128,000 Alabamians fall in the resulting coverage gap. Children qualify for Medicaid or ALL Kids, the state’s CHIP, up to 317% of the poverty level, per healthinsurance.org. See health insurance for children.
When to enroll
Open enrollment for 2027 coverage runs from November 1, 2026 to January 15, 2027. Sign up by December 15 for coverage that starts January 1. For ways to keep your bill down, see how to lower your Marketplace premium.
Other options in Alabama
- Job-based coverage, usually the cheapest route if it’s offered.
- Medicaid for children and pregnant people, and ALL Kids for children’s CHIP coverage.
- Medicare at 65.
Health insurance costs in nearby states: Mississippi, Tennessee, Georgia and Florida. You can also compare health insurance costs in every state.
See 2027 plans and prices in your Alabama county: compare quotes by ZIP code.
Frequently asked questions
What’s the average cost of health insurance in Alabama?
Before subsidies, the 2026 benchmark silver plan for a 40-year-old averaged $645 a month, above the U.S. average of $625. After tax credits, the average Alabama enrollee paid just $126 a month in 2026.
Are Alabama’s 2027 rate increases final?
Yes. The Alabama Department of Insurance approved all four carriers’ filings in early September 2026, for an overall enrollment-weighted increase of about 20.7%.
How many insurers sell Marketplace plans in Alabama?
Four: Blue Cross Blue Shield of Alabama, UnitedHealthcare, Celtic Insurance Company (Ambetter) and Oscar. All four continue unchanged for 2027.
What is Alabama’s Medicaid coverage gap?
About 128,000 people earn too little for marketplace subsidies, which start at 100% of the poverty level, but Alabama Medicaid only covers parents up to 18% of the poverty level and has no path at all for adults without children.
Sources
This article is general information, not insurance or tax advice. Prices are averages and estimates; your actual premium depends on your county, age, income and plan. Last reviewed September 2026.