-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 CVzleW5sLstVdUy2iy2b2X7Pl3pUAa0OV4m9OaJOl7bIVhf+UlEwOPie5Pmo0/fI
 Is2fpf8VvLs/+pOULqyx0w==

<SEC-DOCUMENT>0001209191-08-038809.txt : 20080625
<SEC-HEADER>0001209191-08-038809.hdr.sgml : 20080625
<ACCEPTANCE-DATETIME>20080625151128
ACCESSION NUMBER:		0001209191-08-038809
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20080623
FILED AS OF DATE:		20080625
DATE AS OF CHANGE:		20080625

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ALLIANCE HEALTHCARD INC
		CENTRAL INDEX KEY:			0001087216
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-DIRECT MAIL ADVERTISING SERVICES [7331]
		IRS NUMBER:				582445301

	BUSINESS ADDRESS:	
		STREET 1:		3500 PARKWAY LANE SUITE 310
		CITY:			NORCROSS
		STATE:			GA
		ZIP:			30092
		BUSINESS PHONE:		7707349255

	MAIL ADDRESS:	
		STREET 1:		3500 PARKWAY LANE
		STREET 2:		SUITE 310
		CITY:			NORCROSS
		STATE:			GA
		ZIP:			30092

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			GARCES ROBERT D
		CENTRAL INDEX KEY:			0001274535

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-30099
		FILM NUMBER:		08916540

	MAIL ADDRESS:	
		STREET 1:		3500 PARKWAY LANE STE 720
		STREET 2:		C/O ALLIANCE HEALTHCARD
		CITY:			NORCROSS
		STATE:			GA
		ZIP:			30092
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>c73740_4.xml
<DESCRIPTION>MAIN DOCUMENT DESCRIPTION
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2008-06-23</periodOfReport>

    <issuer>
        <issuerCik>0001087216</issuerCik>
        <issuerName>ALLIANCE HEALTHCARD INC</issuerName>
        <issuerTradingSymbol>ALHC.OB</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001274535</rptOwnerCik>
            <rptOwnerName>GARCES ROBERT D</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>3500 PARKWAY LANE</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 720</rptOwnerStreet2>
            <rptOwnerCity>NORCROSS</rptOwnerCity>
            <rptOwnerState>GA</rptOwnerState>
            <rptOwnerZipCode>30092</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>EXECUTIVE VICE PRESIDENT</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>COMMON STOCK</value>
            </securityTitle>
            <transactionDate>
                <value>2008-06-23</value>
            </transactionDate>
            <deemedExecutionDate>
                <value>2008-06-23</value>
            </deemedExecutionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>10000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>1.15</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>669600</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <ownerSignature>
        <signatureName>/S/ ROBERT GARCES</signatureName>
        <signatureDate>2008-06-25</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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