Alabama residents shopping for health insurance through HealthCare.gov in 2026 face a different landscape than the previous few years. The enhanced subsidies that kept premiums low for hundreds of thousands of Alabamians expired at the end of 2025. For 2026 coverage, premium tax credits are available to households earning between 100% and 400% of the federal poverty level (FPL), and cost-sharing reductions apply to those under 250% FPL. This guide covers the exact income limits, what you can expect to pay, and how to apply.
What Changed for 2026
From 2021 through 2025, the American Rescue Plan and Inflation Reduction Act expanded ACA subsidies so that people above 400% FPL could still receive help paying premiums. Those enhancements expired December 31, 2025.
For 2026, the pre-2021 rules apply again:
- Subsidies cut off at 400% FPL. If your household income exceeds that threshold, you pay full price for marketplace coverage.
- The "subsidy cliff" is back. Households just above 400% FPL lose all subsidy help at once.
- Premiums rose sharply. All four Alabama carriers raised base rates 19% to 25% for 2026. Average after-subsidy premiums for many Alabamians nearly tripled compared to prior years when enhanced credits were in place.
If you enrolled in a 2025 plan using the enhanced credits, your 2026 cost will be noticeably higher unless you qualify under the standard income limits below.
2026 Alabama ACA Income Limits by Household Size
ACA eligibility for 2026 is based on the 2025 federal poverty guidelines. The table below shows the income ranges that determine subsidy and cost-sharing reduction eligibility for common household sizes.
| Household Size | 100% FPL (subsidy floor) | 150% FPL | 200% FPL | 250% FPL (CSR cutoff) | 300% FPL | 400% FPL (subsidy ceiling) |
|---|
| 1 | $15,650 | $23,475 | $31,300 | $39,125 | $46,950 | $62,600 |
| 2 | $21,150 | $31,725 | $42,300 | $52,875 | $63,450 | $84,600 |
| 3 | $26,650 | $39,975 | $53,300 | $66,625 | $79,950 | $106,600 |
| 4 | $32,150 | $48,225 | $64,300 | $80,375 | $96,450 | $128,600 |
| 5 | $37,650 | $56,475 | $75,300 | $94,125 | $112,950 | $150,600 |
| 6 | $43,150 | $64,725 | $86,300 | $107,875 | $129,450 | $172,600 |
For household sizes larger than 6, add $5,500 per additional person to find 100% FPL, then multiply for the threshold you need.
These are annual income figures. Monthly income limits are roughly one-twelfth of the annual amounts.
Who Qualifies for Premium Tax Credits
Premium tax credits reduce your monthly premium for marketplace plans. To qualify in Alabama in 2026:
- Your household income must be at or above 100% FPL and no higher than 400% FPL.
- You cannot have access to affordable employer-sponsored coverage that meets minimum standards.
- You cannot be enrolled in Medicare, Medicaid, or CHIP.
- You must be a U.S. citizen or lawfully present immigrant.
Because Alabama has not expanded Medicaid, the lower boundary of subsidy eligibility stays at 100% FPL rather than 138% FPL. That means individuals and families with incomes between 100% and 138% FPL can access marketplace subsidies, while in expansion states those same people would receive Medicaid instead.
Alabama's Coverage Gap
Approximately 92,000 Alabama adults fall into a coverage gap. They earn below 100% FPL, which means they are too low-income to qualify for marketplace subsidies, but they do not qualify for Alabama Medicaid because the state has not expanded Medicaid to cover most low-income adults without children.
If your income falls below 100% FPL:
- You likely do not qualify for marketplace premium tax credits.
- Standard Alabama Medicaid eligibility is limited to children, pregnant women, elderly individuals, and people with disabilities.
- Federally Qualified Health Centers (FQHCs) can provide primary care on a sliding-fee scale based on income regardless of insurance status.
Check your eligibility using our free benefits screener to see all programs you may qualify for, including Medicaid, CHIP, and other assistance.
Cost-Sharing Reductions
Cost-sharing reductions (CSRs) lower your out-of-pocket costs such as deductibles, copays, and coinsurance. To receive CSRs in 2026:
- Your income must be between 100% and 250% FPL (see the table above for dollar amounts by household size).
- You must enroll in a Silver-tier plan through HealthCare.gov.
CSRs are not available on Bronze, Gold, or Platinum plans. If you qualify but choose a non-Silver plan, you forfeit this benefit.
| Income as % of FPL | CSR Level | What It Does |
|---|
| 100% to 150% FPL | Highest CSR | Brings Silver plan to near-Platinum actuarial value (94%) |
| 150% to 200% FPL | Mid CSR | Brings Silver plan to about 87% actuarial value |
| 200% to 250% FPL | Basic CSR | Brings Silver plan to about 73% actuarial value |
| Above 250% FPL | None | Standard Silver plan (70% actuarial value) |
Plans Available in Alabama 2026
Alabama uses the federal marketplace at HealthCare.gov. Four insurers offer plans for 2026:
- Blue Cross and Blue Shield of Alabama
- UnitedHealthcare
- Celtic/Ambetter
- Oscar Health (new for 2026)
All four raised their base rates between 19% and 25% for the 2026 plan year. The number of available plans and specific premiums vary by county, so always compare options for your specific ZIP code on HealthCare.gov.
How to Apply: Step-by-Step
Step 1: Gather your documents.
Collect Social Security numbers for all household members, proof of income (recent pay stubs, tax returns, or employer letters), and immigration documents if applicable.
Step 2: Go to HealthCare.gov.
Alabama uses the federally facilitated marketplace. Visit HealthCare.gov and create or log into your account.
Step 3: Complete the application.
Enter your household size, ZIP code, and projected 2026 income. The system will calculate your estimated premium tax credit and show you eligible plans.
Step 4: Compare plans.
Review plans by premium, deductible, and out-of-pocket maximum. If your income is under 250% FPL, look closely at Silver plans to take advantage of cost-sharing reductions.
Step 5: Enroll and pay your first premium.
Select a plan and complete enrollment. Coverage does not start until you pay the first month's premium to the insurance carrier.
When to apply:
- Open enrollment typically runs November 1 through January 15 for the following plan year.
- Special enrollment periods apply if you experience a qualifying life event such as job loss, marriage, divorce, birth of a child, or loss of other coverage.
Free help is available.
Alabama navigators offer free enrollment assistance. Contact Enroll Alabama at EnrollALA.com or call 844-248-7698. You can also call the federal marketplace helpline at 1-800-318-2596.
Income Verification and Tax Reconciliation
The premium tax credit is an advance payment made directly to your insurer based on your estimated income for the year. At tax time, you reconcile actual income against the advance:
- If your actual income was lower than estimated, you may receive additional credit.
- If your actual income was higher, you may owe some or all of the advance back.
Use the most accurate income estimate possible when applying. If your income changes during the year, report it on HealthCare.gov promptly so your advance credit adjusts and you avoid a large reconciliation bill.
Check Additional Programs
Most Alabamians shopping on the marketplace are also potentially eligible for other assistance programs. Use our free screener to check eligibility for SNAP, LIHEAP, WIC, and other programs in Alabama. See a full list of available programs on our Alabama benefits page.
Frequently Asked Questions
What are the Alabama ACA income limits for 2026?
For 2026, Alabama residents can receive premium tax credits if their household income is between 100% FPL and 400% FPL. For a single person that is $15,650 to $62,600. For a family of four it is $32,150 to $128,600. Income is measured against the 2025 federal poverty guidelines.
Do enhanced ACA subsidies still apply in 2026?
No. The enhanced subsidies from the American Rescue Plan and Inflation Reduction Act expired December 31, 2025. For 2026, the standard pre-2021 rules apply, meaning subsidies end at 400% FPL and premiums are higher than they were during 2021 to 2025.
What if my income is below 100% FPL in Alabama?
Alabama has not expanded Medicaid, so adults earning below 100% FPL who do not qualify for traditional Medicaid (elderly, disabled, pregnant, or parents of young children) fall into the coverage gap. They are not eligible for marketplace subsidies and likely do not qualify for full Medicaid. Federally Qualified Health Centers can provide sliding-scale care.
Can I still get help with deductibles and copays?
Yes, if your income is between 100% and 250% FPL and you enroll in a Silver plan. Cost-sharing reductions lower your deductible, copay, and out-of-pocket maximum. You must choose a Silver plan to receive this benefit.
Where do Alabama residents apply for ACA coverage?
Alabama uses the federal marketplace. Apply at HealthCare.gov or get free in-person help from Enroll Alabama navigators at EnrollALA.com or 844-248-7698.
How many carriers offer plans in Alabama for 2026?
Four insurers offer 2026 marketplace plans in Alabama: Blue Cross and Blue Shield of Alabama, UnitedHealthcare, Celtic/Ambetter, and Oscar Health, which is new to the Alabama marketplace for 2026.
What is the income limit for cost-sharing reductions in Alabama?
Cost-sharing reductions are available to households earning up to 250% FPL on a Silver plan. For 2026, that is $39,125 for a single person and $80,375 for a family of four.
Can self-employed people apply for ACA subsidies in Alabama?
Yes. Self-employment income counts toward your annual income estimate. Use your net self-employment income (after business expenses) when completing your HealthCare.gov application.
