Temporary health insurance can be a cost-effective, practical solution to fill a coverage gap between jobs or give you peace of mind if you missed the Alabama Open Enrollment Period for health coverage. But you need to understand this type of coverage before you buy, or you could be saddled with unexpected out-of-pocket costs.
The most important thing to keep in mind is that most short-term plans do not provide fully comprehensive coverage. There are limited benefits, and you could be denied coverage if you have pre-existing conditions. But if you’re healthy and on a budget, short-term insurance can be a good choice.
Can I Buy Short-Term Health Insurance in Alabama?
Yes! Alabama has approved the sale of short-term plans with durations from as little as one month to up to three years of coverage. If you’re among the 10% of Alabama residents without health insurance, an affordable short-term plan can be a good first step to getting coverage.
Keep in mind that states have the ability to set their own limits on short-term health plans, so these regulations are subject to change. Contact a HealthMarkets licensed agent for the latest information on Alabama short-term insurance plan rules.
Will Short-Term Health Insurance Work for Me?
Short-term health insurance is an affordable option that can provide minimum coverage in case of an emergency but may not be a good selection if you need frequent, routine care. Individual plans sold on the health insurance exchange (sometimes called Obamacare or Affordable Care Act plans) provide comprehensive coverage to everyone, without consideration of health or gender.
Which insurance plan is right for you? It depends on what you’re looking for. Whether a short-term plan or a health insurance plan from the insurance marketplace in Alabama is right for you, a HealthMarkets agent can assess your needs and situation and recommend the right course of action at no charge to you.
The chart below compares the average cost of a short-term health insurance plan to the average Affordable Care Act plan costs in Alabama for 2019.
Comparison: Alabama Short-Term Health Insurance vs. Alabama Obamacare Plan
AL Short-Term Plan*
AL ACA Plan Without Subsidy**
AL ACA Plan With Subsidy*
Average 2019 monthly premium for individuals in AL
Protections for pre-existing conditions
Includes all Essential Health Benefits (prescription drugs, maternity care, mental health care, etc.)
Premium subsidies available to those who qualify
Caps on out-of-pocket costs
Sold year-round with no enrollment period
Ability to get coverage within 24 hours of applying
Ability to renew coverage
Up to 36 months
*Average based on premiums for 2019 six-month short-term health plans sold by HealthMarkets for a 40-year-old non-smoking male living in Birmingham, Ala. | ** Average based on the 2019 premium for the second-lowest cost Silver plan for a 40-year-old non-smoker making $30,000 per year and living in Birmingham, Ala. | SOURCE: Kaiser Family Foundation analysis of premium data from insurer rate filings to state regulators, healthcare.gov, and state plan finders.
How to Enroll in an Alabama Short-Term Health Insurance Plan
For help choosing a short-term health insurance plan in Alabama, contact a HealthMarkets licensed agent by calling . We can compare plans from a variety of carriers, provide free quotes, and even get you enrolled within a day.
https://health.usnews.com/health-care/health-insurance/articles/pros-and-cons-of-short-term-health-insurance-plans | https://www.kff.org/health-reform/state-indicator/average-marketplace-premiums-by-metal-tier/?currentTimeframe=0&selectedRows=%7B%22wrapups%22:%7B%22united-states%22:%7B%7D%7D%7D&sortModel=%7B%22colId%22:%22Location%22,%22sort%22:%22asc%22%7D | https://www.consumerreports.org/health-insurance/short-term-health-insurance-isnt-as-cheap-as-you-think/ | https://www.kff.org/health-reform/issue-brief/why-do-short-term-health-insurance-plans-have-lower-premiums-than-plans-that-comply-with-the-aca/ | https://www.cbpp.org/research/health/state-limitations-on-the-duration-of-short-term-health-insurance-plans-2018 | https://www.kff.org/health-costs/issue-brief/tracking-2019-premium-changes-on-aca-exchanges/