Alabama Risk Pool - Health Insurance for the Uninsurable
Risk Pool Name / Acronym
Alabama Health Insurance Plan / AHIP
Insurance Regulation Establishing Risk Pool
Alabama Department of Insurance
Chapter 481-1-115 [PDF]
Funding
Funds to operate AHIP come from premium payments. Any deficit incurred by the plan are recouped by assessments by AHIP among participating insurers.
Plans Offered
Alabama has two plans available under their Risk Pool. A Traditional Indemnity Plan is offered through Blue Cross and Blue Shield of Alabama and a Managed Care Plan is offered through United HealthCare. The traditional indemnity plan offered through Blue Cross Blue Shield of Alabama has two deductible options; $1,000 and $2,500.
Plan Benefits
For a summary of benefits, view the plan brochure for the available Alabama Risk Pool plans:
Blue Cross Blue Shield Traditional Indemnity Plan
United HealthCare Managed Care Plan
Maximum Benefit Limits
The Traditional Indemnity Plan has a $1 Million annual maximum and lifetime maximum.
Eligibility
- Must be a resident of Alabama
- Must have had 18 months of continuous health insurance coverage that expired no longer than 63 days from AHIP enrollment date
- Previous health insurance was not terminated due to fraud or non-payment of premium
- Must exhaust state or federal COBRA coverage if it was available to you
- Most recent health insurance coverage was a group health plan, government health plan, church plan, or a health plan connected with any of these types of plans
Enrollment Periods
You must complete and submit an application and enroll in AHIP coverage within 63 days of the expiration of your prior health insurance coverage. Current members of AHIP may request a plan change in November of each year and plan changes will become effective on January 1st of the following year.
Premium Payments
Premiums are based on your health plan selection, your age, your gender and whether or not you are a smoker. Premium payments are required on or before their due date, which is the last day of coverage for which the previous premium payment applied. There is a 31 day grace-period on premium payments.
Premium Calculations
Monthly premiums are determined by looking at the standard risk premiums available for plans of similar benefit levels. AHIP plans may not be lower than 125% of the standard risk rates and no higher than 200% of those same rates. Rates are submitted to and approved by the Alabama Insurance Commissioner.
Pre-Existing Condition Waiting Periods
There are no waiting periods. Since prior health insurance coverage is required to enroll in an AHIP plan, pre-existing condition waiting periods to do not apply.
Alabama Health Insurance Plan Contact Information
Alabama Health Insurance Plan Administrator
Post Office Box 304900
Montgomery, Alabama 36130-4900
Phone: 1-877-619-2447
Fax: 334-240-3059
AHIP Website
* Please refer to our legal terms and conditions for disclaimers pertaining to the content on this page