Medical Expense✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Cost-sharing reductions (CSR) that lower deductibles and copayments on Silver plans are available to households with income...
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Cost-sharing reductions (CSR) are available to households with income between 138% and 250% of the federal poverty level and apply only to Silver-tier plans purchased through the exchange. CSR lower the plan's deductibles, copayments, and coinsurance so that eligible families pay less at the point of care. Above 400% FPL, households may receive premium tax credits but no CSR; below 138% FPL, individuals generally qualify for Medi-Cal in California instead. These band boundaries are the exact eligibility numbers tested in the PPACA section of the A&H outline.
Why the other options are wrong
- B) Households above 400% FPL are not eligible for cost-sharing reductions.
- C) Below 50% FPL, households are far below the CSR band and typically qualify for Medi-Cal.
- D) The 266%-400% band does not exist for CSR; 138%-250% is the statutory range.
Memory hook
CSR lives in the 138–250% Silver band — richer than Medi-Cal, leaner than full APTC.