Alabama Medicaid

Last verified: June 2026

What is Alabama Medicaid?

Alabama Medicaid is administered by the Alabama Medicaid Agency — a standalone state agency, not a division of a larger department. The Agency is headquartered in Montgomery and operates Alabama's Medicaid program under both state and federal authority. As of 2025, approximately 1 million Alabamians are enrolled.

Alabama Medicaid has historically operated primarily on a fee-for-service basis, meaning providers bill the state directly for services. This distinguishes Alabama from most states, which have moved most Medicaid members into managed care. Alabama has been implementing Regional Care Organizations (RCOs) — a managed care model specific to Alabama — in phases, though most members remain in fee-for-service as of 2026.

Because Alabama has not expanded Medicaid, the program serves a narrower population than expansion states. Eligibility is limited to children, pregnant women, parents with very low incomes, people who are blind or have disabilities, and seniors who qualify financially. Adults without dependent children do not qualify.

Who qualifies for Alabama Medicaid?

Alabama Medicaid serves several distinct eligibility categories. Income limits vary significantly by group:

• Children under age 19 through ALL Kids (CHIP): up to 312% FPL — very broad coverage for children
• Pregnant women: approximately 146% FPL — coverage continues for 60 days postpartum
• Parents and caretaker relatives with dependent children: approximately 18% FPL — one of the lowest parent thresholds in the US
• Aged (65+), Blind, or Disabled individuals: income and asset limits apply, linked to SSI standards
• Breast and cervical cancer patients: limited Medicaid for treatment regardless of other eligibility
• Former foster care youth: up to age 26, no income limit

Adults without dependent children who are not aged, blind, or disabled do not qualify for Alabama Medicaid at any income level. This is the direct result of Alabama's non-expansion status.

Alabama's children's coverage: ALL Kids

Children are the primary beneficiaries of Alabama's Medicaid program. ALL Kids is Alabama's Children's Health Insurance Program (CHIP), covering uninsured children through age 18 whose family income is above the standard Medicaid limit but at or below 312% FPL. ALL Kids charges small premiums on a sliding scale. Children at or below the standard Medicaid income limit are covered through regular Alabama Medicaid with no premium.

Alabama Medicaid and ALL Kids together provide the broadest children's health coverage in the state's public program portfolio. The income limit at 312% FPL is higher than many other non-expansion states.

Coverage gap and alternatives

Adults in Alabama who earn less than 100% FPL but do not qualify for Medicaid fall into a coverage gap: they earn too little for marketplace premium tax credits (which begin at 100% FPL) but do not qualify for Medicaid. Federally Qualified Health Centers (FQHCs) across Alabama provide primary and preventive care on a sliding-scale basis regardless of insurance status. Locate one at findahealthcenter.hrsa.gov.

Alabama Medicaid topics

What does Alabama Medicaid Agency cover?

Medicaid covers a broad range of health services. Federal law mandates certain benefits — inpatient and outpatient hospital care, physician services, lab work, X-rays, and nursing facility services, among others. States add optional services on top of those. Dental, vision, and long-term home care coverage vary by state.

The national benefits overview lists required and commonly optional services. Check the Alabama Medicaid Agency website for the current state-specific benefit package.

How to apply

Most people can apply online through Alabama's Medicaid portal, by phone, or in person at a local eligibility office. The how to apply page walks through each method, what documents you'll need, and what to expect during the review period.

Under 42 CFR 435.912, states must process most standard Medicaid applications within 45 days (90 days for disability-based applications). Alabama must follow that federal timeline.