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Cost Sharing Reduction (CSR)

What is the Cost-Sharing Reduction?

A subsidy that reduces the financial burden on individuals by lowering the out-of-pocket expenses associated with their health insurance plan. This reduction typically applies to deductibles, copayments, and coinsurance. In the Health Insurance Marketplace, cost-sharing reductions are often referred to as “extra savings.” Eligibility for these reductions requires enrollment in a Silver category plan.

Key Points:

  • Cost-sharing reductions provide discounts that make healthcare more affordable by reducing deductibles, copayments, and coinsurance.
  • To access these savings, individuals must enroll in a Silver plan through the Health Insurance Marketplace.
  • Qualifying for cost-sharing reductions also results in a lower out-of-pocket maximum, meaning that once you reach this limit, your insurance plan covers 100% of covered services.
  • Members of federally recognized tribes or Alaska Native Claims Settlement Act (ANCSA) Corporation shareholders may be eligible for additional cost-sharing reductions.

“Glossary.” HealthCare.gov, www.healthcare.gov/glossary/.

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