Alabama health insurance tips


Alabama insurance law and regulation

The Alabama Department of Insurance Web site contains help sections for each type of insurance including a section on financially assisted health plans and Medicaid.  The Alabama high risk health insurance plan is no longer open for new enrollments. The Health Insurance reform Information Center was added as a new resource for residents.

The state insurance department can be reached by telephone at 334-269-3550 or by mail at P. O. Box 303351 Montgomery, AL 36130-3351. The state children’s health insurance plan (CHIP) Web site is Alabama ALL Kids.
News that affects your health insurance and planning
June 12, 2020NBC15 News ran a report yesterday focusing on the difficulty getting coronavirus testing as an outpatient in Baldwin County, especially for those without health insurance. The primary concern is the influx of transient tourists this summer who could spread the virus if they don’t know they have it.
March 26, 2020Blue Cross Blue Shield of Alabama announced that it has taken the following steps to ensure its members have access to the proper care during this time:


  • Waiving prior authorizations for diagnostic tests and covered services that are medically necessary and consistent with CDC guidance for members diagnosed with COVID-19.
  • Covering medically necessary diagnostic tests that are consistent with CDC guidance related to COVID-19 at no cost to our members with fully insured individual, employer-based, Federal Employee Program, and Medicare Advantage plans. For self-funded employer plans, members’ cost share for diagnostic tests will be based on their benefit plan.
  • Increasing access to prescription medications by waiving early medication refill limits on prescriptions and encouraging members to use their 90-day retail or mail order benefit.
  • Expanding access to telehealth and nurse/provider hotlines. Given the nature of the COVID-19 outbreak, seeking in-person medical care may lead to further spreading of the virus.
  • Dedicating staff to be specifically available to address inquiries related to medical services, ensuring timely responses related to COVID-19.
February 21, 2020 – Flowers Hospital in Dothan, Alabama sued over 1,500 patients over outstanding medical debts according to CBS News. Some cases, like the one in this news report were grossly over billed compared to Medicare payment standards. The hospital is owned by Community Health Systems Inc.  The company’s Wikipedia listing reports that Community Health Systems affiliates own, operate or lease 102 hospitals in 18 states. In some cases limited benefit or supplemental insurance might help to resolve the problem but Freedom Benefits advises that additional negotiation is almost always required in these situations.
May 24, 2019Status of alternative non-ACA health plans: Alabama does not require individuals to maintain adequate health coverage and permits non-ACA compliant plans. The state provides no premium or cost-sharing subsidies for individual market coverage, permits insurers to sell non-compliant transitional policies in the individual market and does not limit the sale of short-term coverage more strictly than the federal government.
December 10, 2018  – Last month Alabama voters passed Amendment 2 by referendum, that states it is: “the public policy of the state to recognize and support the importance of unborn life and the rights of unborn children, including the right to life.” Freedom Benefits reminds users that, consistent with state law, none of the plans listed on this web site provide insurance benefits for abortion.
November 21, 2018 – On the recent National Rural Health Day Alabama focused on the quality of care in its 54 rural counties. The annual observance aims to shine light on the importance of rural America and promotes the need for accessible, high quality health care. Gov. Kay Ivey announced that the state has developed a pilot program to reduce infant mortality by 20 percent in five years. The program, being conducted in Macon, Montgomery and Russell counties, includes more health care; screening for substance abuse, domestic violence and depression; breastfeeding promotion; and teaching parents how to place their babies for safer sleeping. Meanwhile President Donald Trump authorized new health insurance plans to get around the forces of Obamacare that formerly restricted Alabama residents.

The history of health care planning in Alabama (Information is outdated and links may be expired)

2/11/ 2014 Professional support for any health care reform issue is available free of charge through an arrangement with OnlineNavigator. All online inquiries are handled personally by Tony Novak, CPA. Online support is available through a number of popular social media channels including Facebook and Google+ as well as e-mail. Telephone support for insurance enrollment is available through Members Insurance Exchange at (800) 609-0683.

7/26/2013 Affordable Smart Term Life Insurance is now available to most Alabama residents from age 20 through 60 directly online with no physical exam, agent appointment or telephone verification. Most policies are issued on the same day with coverage amounts of $25,000 up to $350,000. The level premium life insurance is available for terms of 10, 15, 20 and 30 years. Sample rates for $150,000 coverage for a preferred risk male age 30, non-tobacco $30.85 per month; tobacco user $49.55 per month. A preferred risk female age 30 non-tobacco user would be $26.49 per month and a tobacco user would be $40.96 per month. Rates are higher for older applicants and lower health risks as described online. Pricing is based on input you provide about your medical history but, unlike most other life insurers, does not consider family medical history. Coverage is issued by innovative National Life Group, rated “A” by A.M. Best Company for 2013.

2/22/2013 This page was updated to include a link to the insurance plan that will be used to determine specific “essential health benefits” for insurance that qualified for 2014 federal tax purposes. Also, a link to additional covered benefits required by state law. Non-qualified insurance is likely to continue to be available at a lower cost that does not include these benefits nor qualify for federal tax purposes.

2/1/2012 The Center for Consumer Information and Insurance Oversight, a division of the Center for Medicare and Medicaid Services (CMS)reported that as of June 30, 2011 Blue Cross and Blue Shield of Alabama is the state’s largest health insurance provider and as such, earns the right to set the benchmark for the development of the state’s essential benefit plans to debut in 2014 under health reform law.

11/7/2011 Alabama opened its Children’s Health Insurance Program (CHIP) to the kids of low-income and part-time state employees, an option that was prohibited until the passage of the 2010 health-care law. The program is jointly financed by the state and the federal government to provide coverage to the uninsured children of families who earn too much to qualify for Medicaid but cannot afford private insurance.

7/10/2011  The U.S. Center for Consumer Information and Insurance Oversight announced that Alabama lacks proper resources or authority in the individual or small-group health insurance market to effectively review large rate increases as required by federal law. The federal government will temporarily take over the task of reviewing both individual and small business health insurance rate increases that are greater than 10%.

2/12/2011 With dozens of health plans choices available online offering a wide range of pricing and benefits, how do you find the best combination of price and benefits? Celtic Insurance realizes that the choices can be overwhelming; the company offers more than 40 possible health plan designs in many parts of the United States. A new feature called “Help Me Choose” lets users easily and quickly select the benefits they value most and narrows the list down to a few of the best choices. No personal information is required other than zip code and date of birth.

2/7/2011 The state’s pre-existing insurance plan monthly premium rates (per person):

Plan/Age Band 0-18 19-34 35-44 45-54 55+
Standard $183 $274 $328 $419 $583
Extended $246 $368 $442 $564 $785
HSA $190 $284 $341 $436 $606

PCIP will cover a broad range of health benefits, including primary and specialty care, hospital care, and prescription drugs. All covered benefits are available for you, beginning on your coverage effective date, even if it’s to treat a pre-existing condition – there are no waiting periods. PCIP applicants who are approved to participate in PCIP can choose from three plan options, with different levels of premiums, calendar year deductibles, prescription deductibles and prescription copays. The HSA Option provides an opportunity to open a Health Savings Account, a tax-exempt account where you can deposit funds for eligible medical expenses. Each of the three PCIP plan options provides preventive care (paid at 100%, with no deductible) when you see an in-network doctor and the doctor indicates preventive diagnosis. Included are annual physicals, flu shots, routine mammograms and cancer screenings. For other care, you will pay a deductible before PCIP pays for your health care and prescriptions. After you pay the deductible, you will pay 20% of medical costs in-network. The maximum you will pay out-of-pocket for covered services in a calendar year is $5,950 in-network/$7,000 out-of-network. There is no lifetime maximum or cap on the amount the plan pays for your care. If you apply for PCIP coverage, you will be billed for the premium once your application is approved. You will need to send in your payment in order for your coverage to be effective. Please do not send in the premium before you are billed. Note that your premium may increase if you age into a higher rate tier, or if PCIP adjusts its premiums to any changes in the commercial market.


1/30/2011 Patients with health insurance and a credit card now have access to VIP treatment when care is needed at a hospital emergency room. Infirmary West in Mobile and Brookwood Medical Center in Birmingham joined the growing list of hospitals that allows patients to use InQuickER, a reservation system that books appointments and reduces waiting time in the emergency room. The reservation system makes check-in easier by recording your insurance and payment information in advance. The service costs $15 to $25. Of course the nature unpredictable medical emergencies mean that the service cannot absolutely guarantee that you’ll be seen immediately at your appointment time, but you get a full refund if not treated within 15 minutes after arrival. The InQuickER service works in conjunction with any of the private health insurance plans listed here at but is not available to uninsured patients.

12/28/2010 The Alabama pre-existing condition insurance plan attracted only 33 Alabama residents this year despite the government-subsidized premium. This plan provides a health coverage option for consumers who have been uninsured for at least six months, have a pre-existing condition or have been denied health coverage because of their health condition, and are a U.S. citizen or are residing here legally. The plan is run be the federal government. The federal government pays most of the premium cost. The plan was initially criticized for excessive taxpayer costs but the overall lack of public interest in this insurance was not anticipated.

12/18/2010 Alabama Department of Insurance officials met representatives of 44 other states and numerous employees of the federal Health and Human Services Department in Washington DC this week for a two-day working meeting to discuss the next steps in establish a government-run health insurance exchange under the American Health Benefit Exchange Model Act. Their attendance at this meeting was paid for by a $1 million federal grant awarded by HHS in September to the state for research how to set up an insurance exchange. Two states (Alaska and Minnesota) declined to participate, saying that it was a waste of taxpayer money. Four other states (not identified in press reports) that received federal grants did not send representatives to the meeting. Attendees included representatives of 16 states that are suing the federal government in an attempt to overturn the federal health reform law; specifically the requirement that forces individuals to buy health insurance on the insurance exchange or pay a hefty tax fine.

In its initial federal grant request for the insurance exchange project, Alabama said that it would: 1) assess the status of health insurance in Alabama as it relates to the uninsured, the underinsured and the currently insured to determine what the environment will look like in 2014, and what consumer demand for the Exchanges. 2) Determine the best governance structure for the exchange.  3)Incorporate a broad-based workgroup and working subgroups of interested stakeholders to assist the Department as it envisions an Alabama Exchange.  4)Seek appropriate legal and regulatory authority to establish an exchange.

The meeting reportedly did not address the role of the commercial health insurance exchanges on the implementation of new competing government systems. The model act does not address inter-state insurance exchange proposals nor insurance sales across state lines. Federal officials admitted that they may not be able to provide further guidance until 2012. Meanwhile, most states are motivated to continue to meet requirements to obtain additional funding promised by the federal government for the establishment of insurance exchange by 2014. Freedom Benefits has previously voiced the opinion that the huge amount of money being spent to set up alternate insurance sales system technologies could be better used providing health benefits to the public. We proposed on the Universal Health Insurance blog that adequate commercial insurance sales systems are already in place that could be modified in a public/private partnership to make health insurance more affordable.

3/23/2010 Alabama and ten other states including Florida, Michigan, Nebraska, North Dakota, Pennsylvania, South Carolina, South Dakota, Texas, Utah and Washington will make a joint legal challenge to the federal health reform bill on the basis that it improperly usurps state sovereignty over health insurance and that requiring health insurance is an illegal and improper government action.