This content is for general informational purposes and does not constitute medical, legal, or financial advice. Healthcare rules and costs change annually. Last reviewed: January 1, 2025. Always verify current details with your insurer, employer, or a licensed healthcare navigator.
Cost-Sharing Reduction (CSR)
Extra savings on deductibles, copays, and out-of-pocket maximums for Silver plan enrollees with lower incomes.
Full Definition
Cost-Sharing Reductions (CSRs) are additional savings that lower your out-of-pocket costs — deductibles, copays, coinsurance, and out-of-pocket maximum — when you enroll in a Silver plan on the ACA marketplace with income between 100% and 250% of the federal poverty level. CSRs are only available on Silver plans. Depending on income, they can raise the plan's actuarial value from the standard 70% up to 94%. You must enroll in a Silver plan to receive CSRs — Gold and Platinum plans are not eligible.
Real-World Example
A single person earning $22,000/year enrolls in a Silver plan with CSR. Their deductible drops from $3,500 to $300, and their out-of-pocket maximum drops from $7,500 to $1,500 — giving them Platinum-level protection at a Silver premium.
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