Under the ACA, cost-sharing reductions (CSR) are available to eligible enrollees whose household income is between 138% and 250% of the federal poverty level, provided they enroll in which type of plan?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Cost-sharing reductions are a federal subsidy that lowers deductibles, copayments, and coinsurance for eligible marketplace enrollees with incomes between 138% and 250% of the federal poverty level. The reduction is available only to enrollees who select a silver plan; bronze, gold, platinum, and catastrophic plans do not qualify. The insurer receives federal payments to lower the enrollee's cost-sharing, effectively boosting the silver plan's actuarial value for those who qualify. This silver-only link is a frequently tested detail that distinguishes CSR from the premium tax credit, which can be used with any metal tier.
Why the other options are wrong
- B) Bronze plans carry the lowest actuarial value and are not eligible for cost-sharing reductions; only silver plans qualify.
- C) Catastrophic plans are limited to young adults and hardship cases and never carry cost-sharing reductions.
- D) Gold and platinum plans, like bronze, are not eligible for CSR; the subsidy is tied exclusively to the silver tier.
Memory hook
CSR rides only on silver: income between 138 and 250 percent FPL buys lower out-of-pocket costs.