It says about two-thirds of the families would qualify for government-sponsored coverage for their children if parents would apply.
The report shows more than 85,000 uninsured children live in Alabama.
The government has two programs that provide health insurance for children.
Medicaid primarily covers children living in poverty, while the state children's health insurance program covers children who live just above the poverty level.
Many people don't know about the programs and the enrollment process as "cumbersome."